With all the hurricanes, flooding, and earthquakes happening around the world right now, you may be wanting to help by donating money. But before you donate your hard-earned cash, you should make sure that you are donating to a legitimate organization that provides the most help to victims. Below are a few websites that a donor can use to research an organization before donating money.
- The IRS website provides a list of charitable organizations where your donation is tax deductible. Just be sure that the organization is eligible to receive tax deductible donations and isn’t just tax exempt (meaning the organization doesn’t pay taxes).
- The Better Business Bureau monitors charitable organizations by rating their governance, effectiveness, finances, and solicitation practices.
- The Guidestar website claims to be “the world’s largest source of information on nonprofit organizations.” You can search their website to compare nonprofits by looking at revenue and expense data for the year, balance sheet data, 990 forms and annual reports.
You may also want to consider donating items like clothes or food instead of money. No matter how you decide to help those in need, be careful not to fall victim to a scam. Research the organization before donating.
-Kathryn M.
Sage Personal Finance 