6 Things You Should Know About Donating to Charity
Websites like CharityNavigator.org, Give.org (the Better Business Bureau's Wise Giving Alliance) and GuideStar.org compile data in a donor-friendly way to make it easier to vet some of the more than 1.4 million registered tax-exempt organizations that want your donation. On these websites, you'll find information on charities' spending habits (how much is going to administrative expenses?) and transparency (are they open about what they're doing with the money that actually goes to the cause?). And remember 35%— That's about how much nonprofits should spend on admin and fundraising costs. The rest should go to charitable initiatives.