How to Pick a Charity (And Avoid Getting Scammed)

You may have received phone calls or letters in the mail from charities requesting money for their cause. But how do you know if they’re legitimate and not on a charity watch list? If you send the requested money, you may lose thousands of dollars. Not only will you have depleted your bank account, but you may have unknowingly supported some type of illegal activity.

Whenever you’re approached by someone who’s collecting donations on behalf of a charity, pause for a moment. Think about if you’ve heard of the organization. If you haven’t, ask the person for a business card and/or website. Tell him or her that you need to research the nonprofit before you support it.

Read on to learn how to pick a charity and avoid getting scammed. Protect your assets and peace of mind.

Avoid Being Conned: How to Pick a Charity

Pick a Charity to Donate to that’s in Alignment with Your Values

When you choose a charity to support, consider your values. For example, maybe you value family and would like to donate to an organization that works with homeless families. Or perhaps you value nature and do whatever you can to help, i.e., you pick up trash in your area when you see it. You could choose a charity that’s focused on the conservation and preservation of the environment.

Pick a Charity to Support That Meets Your Preferences

Ask yourself questions such as, “What’s important to me? Where should the charity be located? Should the charity be established, new, large, or small?” For example, maybe you have an elderly relative living in an assisted living home and want to donate to a charity for seniors. No matter your preference, create a list and research a charity before you support it.

Pick a Charity That Continues to Meet and or Exceeds Its Goals

The charity you choose meet and/or exceed its goals. How would you know this? By looking at their financial statements; most nonprofits have them on their websites. If a charity isn’t meeting its goals, you have to ask yourself, “Why not?” There could be a number of reasons, from an inexperienced board to fighting amongst board members, employees, and volunteers. Choose a charity wisely before opening your checkbook.

Pick a Charity That’s Mission Speaks to You

Understanding how to pick a charity to support and donate to involves considering the mission statement. First of all, does the organization have one? If they don’t, this is a red flag. If the charity has a mission, do you understand it? If not, this is another red flag. A charity’s mission should be clear and concise. Once you find a nonprofit with a mission that matches your values, you may consider donating to the organization.

Pick a Charity that’s Transparent

How transparent is the charity you’d like to support? Do they have an active website that shows a mission and vision statement, the board of directors, financial statements, stories about how funds helped their cause, latest news, community involvement, and more? Knowing how to pick a good charity involves reviewing these and other criteria. A charity that’s transparent has nothing to hide and welcomes questions from potential supporters.

Pick a Charity that’s Local

How to find local charities to support is easy because you can conduct an internet search. For example, if you typed “Florida charities” in the search box, you’ll receive a list of results for the state. However, you could narrow your search by city, county, and preference. For example, “Orlando, Florida charities for seniors,” will return results not only for the state, but for the city of Orlando and your preference. If you’re unsure about supporting a charity, start locally because you can visit the organization.

Pick a Charity That You Believe in to Support

Before donating to a charity, use the internet to research them. You can search databases to discover a charity that meets your criteria. While this may seem like a lot of work, it will save you money in the long run. Too many people, especially the elderly, have been victims of charitable scams. It’s important to know how to pick a charity because you don’t want to be taken advantage of. Give yourself peace of mind by choosing a charity that is doing work that matches your values and preferences.

Want to learn more about how you can ensure that the charity you leave money to receives it? Download a “commonly asked questions about trusts” document.