In this time of giving, know who you’re helping

By KARA McGUIRE

MINNEAPOLIS STAR TRIBUNE

Each year I plan to be more mindful when it comes to charitable giving. The next thing I know, it’s November and I find myself with a pile of solicitation letters and a pile of unanswered questions. Which charities need my money the most, I wonder. How much should I give? And how do I learn more about smaller nonprofits in my neck of the woods?

I figure I can’t be the only person in this pickle.

So on behalf of all hasty charity check writers, I asked three philanthropic pros to help us donate money, time and stuff more wisely.

“Identify a cause that is important to you,” says Helen Ng of the Charities Review Council. That might be supporting research for a particular disease or an organization that works on making cities more bike-friendly. “Those are the gifts that are going to mean the most,” adds Christine Durand, communications director for the Minnesota Council of Nonprofits.

Once you’ve narrowed down some causes, it’s research time.

The Charities Review Council rates organizations based on 16 standards, such as effective fundraising, money management, and whether the nonprofit is well-managed. I try not to waste money when running my household and would like to know the charity I’m supporting won’t waste my hard-earned money. Ng says at least 70 percent of fundraising dollars should go to programming.

The Charities Review Council’s assessment of about 300 charities can be found online at Smartgivers.org. You can also check out Charitynavigator.org, Guidestar.org and Give.org, the Better Business Bureau’s Wise Giving Alliance.

If a charity makes little information available through such sites, you can always request its IRS Form 990. Going through the tax document is no picnic, but it does provide a nice snapshot of an organization’s financial health.

Feel free to call a charity and ask questions. If the group is less than forthcoming, that’s a red flag, Ng says. Although there are many worthwhile organizations doing excellent work, there’s undoubtedly some bad eggs ready to prey on your giving nature.

Think ‘check’

With your list of charities in hand, now it’s time to show them the money. Durand says most organizations prefer checks from donors because online and credit-card transactions incur fees. But it wouldn’t hurt to ask. You may learn that your cause needs the most support in the summer when giving is far from many people’s minds.

If you’re like me and think of charity as a having a dual benefit — great for the community and for my tax bill, then make sure the organization you select is a 501(c)(3); not all groups qualify for the tax deduction, even if the money is for a good cause.

Don’t forget that one gal’s trash can be another’s treasure. I’ve donated a crystal vase and mahogany jewelry box to a silent auction and children’s books to transitional housing. The toughest part is valuing donated goods for tax purposes and finding the best home for my discarded items.

Finally, giving can be a gift. Instead of adding to the consumer clutter beneath the Christmas tree, I’ve been donating money to my loved ones’ pet causes. No one has revolted so far.

X Kara McGuire writes about personal finance in the Star Tribune. Distributed by McClatchy-Tribune Information Services.