Find Out How They Spend the Money
Legitimate charities gladly share information on where your donation will go, says Charity Navigator president Trent Stamp. His group's free reports reveal CEO salaries and how much of the money goes to fund-raising and other expenses. A charity should spend at least 75 percent of its budget on programs directly related to its cause, says Stamp.
Check the Name Twice
Before you open your checkbook, make sure you're giving to the organization you think you are, says Stamp. Dodgy charities can capitalize on the reputation of legitimate ones by using a soundalike name. For instance, Stamp's group gives the Children's Defense Fund four stars, and the Children's Charity Fund zero. But even legitimate groups can fall short: The American Cancer Society earns just two stars from Charity Navigator. "Only 69 cents on the dollar goes to programs, and that's well below their peers," Stamp says. By contrast, the National Cancer Coalition spends 96 percent of its money on cause-related programs.
Beware of Charity Tie-In Products
Don't assume that buying a product with a charity's stamp can substitute for a direct donation. "For most products, it's just pennies on the dollar that actually reach the charity," says Stamp. "That might make you feel better, but it can be the equivalent of throwing a penny in a donation jar."
High Marks: Breast Cancer Research Foundation
Low Marks: American Breast Cancer Foundation
High Marks: Dana-Farber Cancer Institute
Low Marks: Childhood Leukemia Foundation
High Marks: Partners in Health
Low Marks: Children's Wish Foundation International, Inc.
High Marks: Spondylitis Association of America
Low Marks: The Arthritis Trust of America
High Marks: Fisher Center for Alzheimer's Research Foundation
Low Marks: American Health Assistance Foundation
High Marks: National Women's Health Network
Low Marks: National Osteoporosis Foundation
High Marks: Diabetes Action Research and Education Foundation
Low Marks: Defeat Diabetes Foundation
High Marks: International AIDS Vaccine Initiative
Low Marks: Design Industries Foundation Fighting AIDS
High Marks: WomenHeart: The National Coalition for Women with Heart Disease
Low Marks: Heart Support of America
High Marks: Healthy Child Healthy World
Low Marks: Wishing Well Foundation USA
Courtesy of Charity Navigator
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