We can all agree that competition for donations is now intense than ever. This traces back to the rapid rise of non-profit organizations and limited funds available to address people’s needs. Not to mention poor economic conditions that demand for charities services. That’s at a time when their resources are shrinking and they are asked to do more with less.
Keep in mind all charities should spend to cover overhead costs including costs associated with soliciting donations. Some charities will stuff your mailbox with fundraising appeals and use aggressive tactics to get your money. That being said below is a few things to do before making your donation to charity.
Charitable organizations always provide detailed information to interested donors. That’s why you should never make the mistake of giving your donations to an organization you know nothing about. Take it upon yourself to ask for a written literature and copy of the annual charity report before deciding on anything. This should include a list of board of directors, a mission statement and the recent audited financial statement with accompanying notes.
If a charity fails to provide you with the requested information, you may want to think twice about giving. After all, honest charitable organizations always encourage your interest and respond to your questions. Relying on such organization helps ensure you enjoy a donation tax relief without the hassle.
Make it the norm to inquire how much of your donations to charitygoes for general administration and fundraising expenses and how much is left for the program you support. You might not know this, but the best charity programs are able to spend 75% or more on programs.
However, newer groups and those working on less popular issues may find it necessary to spend a great percentage on fundraising. It’s difficult to determine the exact amount spent, but you can always ask the representative to provide you with specific information. For charities that work locally, you may want to contact local organizations to ask if they work with or know about the charity.
Once satisfied about making charitable donations, always be sure to give generously. Fortunately, there are many good charities that need your help to operate valuable programs and provide needed services. When you give generously, you will be in a position to give more effectively.
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