Are Your Charitable Donations Going to the Right Place?

Most of us have given some amount of money to a charity at one time or another, often because we are solicited to do so and would feel bad telling the person asking no. Very few of us ever take the time to research the charities we donate to and make sure that most of our money isn't eaten up by administrative costs or going to people that don't really need our money. Make sure that the charities you donate to are legitimate and that the money you are donating is going to the right place.

There are a number of organizations that collect money under the guise of being a charity without any intention of helping anybody. There was recently an expose in the Boston Globe about a group called the Veteran's Charitable Foundation. The organization made the pitch that charitable donations would go to purchase wheelchairs and pay medical expenses for veterans and their families, however only 2% of the money being donated was actually being sent to veterans.

The other 98% was being siphoned off to a company based out of Florida. The media finds out about fraudulent organizations like these every once and a while, but for everyone that's uncovered, there are easily two or three more that are still scamming consumers. You have to make sure that your charitable donations are going where they belong.

If you're being solicited by a charity over the phone or in person and do want to give but have never heard of them before, ask for some literature. If they're a real charity, they'll be happy to provide some to you. If you're being pressured to donate then and there, they are likely fraudulent and do not deserve a dime of your money.

You can then take that literature and visit websites like CharityWatch.org and make sure that they are an efficient organization and provide help to those who genuinely need it. Before even considering donating to a charity, make sure that at least 75% of the money that they collect goes to the direct service and delivery of the charitable services they are offering.

There's also been a new trend of "charities" that partner with local police departments and firefighters. They ask permission to call the area that's being serviced by a department and request charitable donations on behalf of the organization. Many law enforcement and public service departments agree to it because it's money they did not have before, but the reality is that they will usually only collect about half of the money that's collected.

These charities that call on behalf of your local police department or firefighters organization will tell you that the money is going to help fallen police officers and firefighters, but the reality is that the charity does not have the best interest of the fallen officers in mind.

Many charities that solicit your donations are inefficient and others are outright scams. Make sure your donations are going to an organization which will use your money efficiently and for the right cause.