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9 tips to vet a charity before making a donation

9 tips to vet a charity before making a donation

Charity is a noble contribution a person makes, often to nonprofit organizations, to help them further a social cause. In addition to bringing fulfillment and joy, the act can provide extensive tax benefits to the donor. However, not all social organizations are legitimate. So, diligent research is critical to ensure your monetary contribution is put to good use. Here are nine simple tips for vetting a charity before making a donation.

Identify the organization’s mission
To begin with, identify the cause you intend to support. It could be animal protection, racial equality, nature conservation, child welfare, or another noble cause. Then, depending on your preference, look for a suitable organization or group that pursues the same mission. Seeking suggestions from family and friends can help. Finally, after shortlisting the names of preferred organizations, research them thoroughly.

Verify their registered information
A legitimate charity must register itself with a regulatory body. So, visit the websites of organizations like the Internal Revenue Service (IRS) for information about them. The IRS can help verify if the charity is authorized to accept donations.

Check Form 990
Form 990 can give you a better understanding of the nonprofit’s financial standing. Each year, nonprofit organizations submit this form to the IRS, which includes information related to their governance, finances, and mission. They are also required to make the report available to the public.

Go over their history
It is crucial to analyze the organization’s past contributions, financing sources, and news stories and determine how long they have been functioning. Those with a consistent track record of excellence and support from reputable donors can be trusted.

Scrutinize their social media channels
It is advisable to go over the organization’s social media presence. Doing so can give you an idea about their impact on society and what others have to say about their work. It can also help track their next course of action and the outcomes.

Speak with donors and volunteers
Connect with other donors and volunteers to learn more about the organization. Such individuals will be able to provide you with the names and contact details of key members who can give additional information.

Examine their impact
It is necessary to gauge an organization’s performance in terms of the number of people it helps and the hours it puts in to fulfill its purpose. While at it, compare its old and new financial reports to ensure the organization is not stagnant. Donations should be made to charities moving closer to achieving their goals.

Get involved
The best way to get a clear picture of an organization is to get involved or volunteer. Meeting people in the same community can help build trust in their contribution and an emotional connection and provide the necessary surety to donate.

Contact the charity
If possible, get in touch with the nonprofit. Inquire about their mission, goals, committee members, how long they have been around, who they are assisting, and so on. A discussion may lead to establishing confidence.

These steps may seem too elaborate and unnecessary for smaller donations. But research is vital to ensure every dollar spent for a good cause reaches the hands that truly need it!

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