Check Before You Give

It is frustrating to donate to a charity, only to find out that the charity isn’t using your gift in a respectful manner. Many charities waste money on overhead and executive salaries, leaving less money to go towards their missions.

It’s difficult to get your money back from a charity once you’ve donated. So make sure to do due diligence before you give. Here are some tips for discerning donors.

Beware of Scammers

  • Make sure the group asking for a donation is a real charity. Fly-by-night “charities” may pop up after a natural disaster, looking for new victims. The IRS maintains a database of tax-exempt organizations that you can search. Your state attorney general or secretary of state may also have an online database of charities registered in your state.
  • Scammers may have names that are very similar to real charities, making it even more important to double check that it’s a real charity.
  • Take your time in donating. Scammers often use pressure tactics to try to get you to donate immediately. They can also make their phone number appear to be a local area code. Do your research before donating.

How to Find More Information on a Charity

  • Look at a credible charity evaluator. Charity evaluators do the hard work of digging into a charity’s public tax return and grading the results. CharityWatch is considered a good evaluator, but it only rates a few hundred charities and requires a subscription. Charity Navigator rates the most charities, but its ratings have been criticized as too weak. There may also be sites that focus on certain issue areas. For example, if you’re giving to a veterans charity, try CharitiesForVets.org, a free resource.
  • Look at a charity’s tax returns yourself. ProPublica publishes a database of nonprofit tax returns. While tax returns may look daunting at first, they have key information such as how much executives are being paid. However, if it’s a newly formed charity, it will not have filed any tax returns.
  • Ask around. Your friends and family may have recommendations for groups they give to that they are satisfied with.
  • Look for news reports. If there’s been a scandal about a charity, you can often find information through an online search engine. Search the charity’s name with words like “complaint” or “scam.”
  • Look at online reviews. Keeping in mind that anyone can leave a review, these may provide insights into the good (or bad) practices of a charity.
  • Be careful of relying on materials put out by the charity. Naturally, the charity wants your money and will put on the best face possible. They may even say that 85% of their money goes to “their mission.” However, these can be word games that disguise the truth. That’s why it’s important to look for third-party evaluators who can cut through the noise.

Be Careful How You Pay

  • Pay by credit card or check.
  • Don’t pay by cash, gift card, or money wire. Scammers typically want payment through these kinds of means.
  • If you’re looking at donating through a crowdfunding website or social media, there are additional considerations. Read the Federal Trade Commission’s advice.

How to Report a Suspected Scam

  • Report scams to the Federal Trade Commission at ReportFraud.ftc.gov.
  • Find your state charity regulator at nasconet.org. Your state attorney general typically has jurisdiction over consumer protection issues, but a secretary of state may also have oversight over nonprofits.


Remember: There are lots of good charities out there in almost any issue area. If you aren’t sure about one, there should be plenty of other good options.