Choosing nonprofits wisely

The holiday season brings many requests for donations. Mailboxes and emails fill with appeals from charities. Friends might even reach out and ask you to support their causes. But how do you know which nonprofits will use your money well? Some “charities” fleece donations for personal gain. Learning how to research charities before giving helps ensure your donations actually reach people in need.

Many people give with their hearts, which is wonderful. However, taking time to check a nonprofit’s background protects your investment in good causes. Not all charities operate in the same way. Some spend most donations on programs that help people, while others use large portions for salaries.

Start by looking at a charity’s mission statement. This explains what the organization aims to do. Ask yourself if this mission matches your values and interests. A good mission statement is clear and specific. Vague language like “helping people everywhere” is a red flag potentially indicating a lack of real purpose.

Next, examine how the nonprofit spends money. The most successful charities put at least 75% of donations toward actual programs. Administrative costs should stay below 25%. Fundraising expenses should not exceed 15% of total income. These numbers help you see if donations reach the people who need help.

You can find this financial information online. Charity Navigator ranks nonprofits based on financial health and accountability. GuideStar provides detailed reports on charity finances. Both websites are free and easy to use.

Some local examples: United Way of Mat-Su spends a remarkable 91% of its funds on programs. Valley Hospital Association (as Mat-Su Health Foundation) and Kids Kupboard both spend 85% of their respective budgets on actual programs. Set Free Alaska puts 84% and True North Recovery puts 81% into their own programs. Only 68% of Valley Community for Recycling Solutions (VCRS) goes to programs, but they are a smaller organization, and sometimes that can affect the ratio.

Look for transparency in the organizations you consider supporting. Good nonprofits publish annual reports that show how they spend money. They list board members and key staff. They share stories about the people they have helped. If a charity hides basic information, consider this a warning sign.

Check whether the nonprofit has proper registration. Legitimate charities register with the IRS as tax-exempt organizations. They should provide a tax identification number when you donate. This number lets you claim tax deductions for your gifts. Discuss deductions with a tax professional before claiming them on your taxes.

Consider the charity’s age and stability. Organizations that have operated for several years often have proven track records. However, newer nonprofits might address urgent local needs. Research their founders and leadership to understand their experience and commitment.

Local nonprofits deserve special attention because they serve their community directly. Food pantries and food banks in Wasilla help your neighbors. Youth programs in your hometown serve local children. These organizations understand the Mat-Su’s unique needs and challenges.

Ask questions before donating. Contact the charity directly. Good organizations welcome questions about their work. Ask how they measure success. Request examples of recent accomplishments. Professional staff should provide clear, helpful answers.

Be careful with door-to-door solicitors and phone calls. Legitimate charities rarely use aggressive tactics. They give you time to research before asking for money. High-pressure sales techniques often indicate scams or poorly run organizations.

Remember that smaller donations to effective charities often help more than large gifts to wasteful organizations. Your twenty-dollar gift to an efficient food pantry might provide several meals. The same amount to a poorly managed charity might pay for home office supplies instead of helping hungry families.

Your charitable dollars represent your values and hopes for a better world. Make sure they work as hard as you did to earn them.

Christian M. Hartley is a 40-year Alaskan resident with over 25 years of public safety experience and public service. He runs a freelance business, Big Lake Writer, from home in Big Lake that he shares with his wife of 19 years and their three teenage sons.