Research Your Preferred Charities

1. Charitable Organization Efficiency

For every dollar you donate, only a percentage of it is actually used to fund programs. Much of your money is used for fundraising and administrative costs. So how do you know which charitable organization is using your contribution most effectively? Here are three websites that can help you assess potential charities.

• Charity Navigator
• Better Business Bureau: Charities and Donors
• Charity Watch

2. Avoid Fraudulent Solicitations

It is often best to avoid donating over the phone or via email solicitations. These are two common ways thieves target their victims. Instead of reacting to a phone call or email, a better idea is to proactively plan who you wish to give money to each year. An additional benefit of this approach is that you avoid the fees paid to these middlemen fundraisers out of your donations.

3. Confirm the Deductibility

Many smaller organizations will represent themselves as a qualified charitable organization, but have not kept their non-profit status up-to-date. If unsure whether your desired charity has kept their records up-to-date, you can check the IRS website for a full list of qualified organizations. Here's the link:

• IRS Charity Status

4. Needing a Receipt

Remember cash donations $250 or more require a written confirmation from the charitable organization of your donation in addition to your canceled check or bank receipt. If you aren't sure whether a confirmation will be forthcoming, limit your deduction to some amount under this $250 threshold.

By taking a thoughtful and proactive approach to charitable giving, you can ensure your generosity truly makes a difference while protecting your financial well-being. Researching organizations in advance, avoiding high-pressure solicitations, confirming tax deductibility, and maintaining proper documentation help ensure your contributions reach their intended recipients. Whether you donate in response to a natural disaster or as part of a planned annual strategy, these simple steps provide peace of mind that your support is both impactful and compliant — allowing you to give with confidence and create meaningful change where it matters most.