Better Business Bureau Wise Giving Alliance recommends donors research charities fully before they give—just like billionaires do
Forty billionaires have pledged to donate a substantial portion of their wealth to charity with the hope of inspiring others to donate to worthy causes as well. While the dollar amount you donate might be less, the BBB encourages everyone to give like a billionaire by researching any charity fully before making a donation.
Evaluating the effectiveness of a charity is more than just looking at the fundraising and administrative costs. Transparency, impact, and accountability are also important factors that everyone should consider before they give. The BBB Wise Giving Alliance recommends the following five steps to give like a billionaire:
- Take Your Time. Check the organization out with the BBB Wise Giving Alliance at www.give.org and the local charity registration office (usually a division of the state attorney general's office). Don’t be pressured to give before you do your research.
- Consider more than just the charity’s finances. Impressive financial ratios are not a guarantee that a charity is being run ethically and effectively. Review the BBB’s Standards for Charity Accountability at www.give.org to identify fundamental features of an accountable organization.
- Don't be fooled by names. Names may look impressive or may closely resemble the name of a well-known organization. Sometimes name similarity is used as a ruse to confuse the potential donor.
- Look for clarity. Watch out for appeals that focus solely on a problem but don’t clearly explain what the charity intends to do about it. The charity’s intended program activities should be spelled out.
- Review the charity’s plans. If you want to consider donating to a newly established charity, take the time to review the charity’s program plans including its board approved budget. Make sure that it has the capacity to be able to follow through on its intended objectives.
For more advice on giving, contact the Better Business Bureau Wise Giving Alliance at www.give.org or call your local BBB at 1-800-388-2222.