Charitable donations: Steps to consider before you give.

Donating to a cause you care about is a powerful way to make a difference and connect with something larger than yourself. Whether it’s helping communities in need, supporting disaster relief or funding crucial research, giving can be deeply fulfilling. You want to pitch in and make sure your donation will go toward a good cause, but how can you determine what’s legitimate? This article explores what you need to know to help make sure your donation is providing a meaningful impact.

Beware of fraudulent donation campaigns.

If you want to support a cause you’re passionate about, but aren’t sure where to begin, start by making a list of things that are important to you and why it’s important to you. For example, the wildfires in Los Angeles have reminded us of supporting those affected by these unpredictable events. Whether it’s fighting a disease or supporting education in your local community, once you identify your priorities, you can search for charitable organizations that match your interests.

Do your homework before donating.

It’s important to do a little bit of homework to find out as much as you can before donating. This can help ensure your funds are going where you intend them.

• Research the organization: Before donating, look into the charity or relief organization. Trusted websites like Charity Navigator or GuideStar opens in a new window can provide ratings and reviews of nonprofits.
• Avoid unsolicited requests: Be cautious of unsolicited emails, social media posts or calls asking for donations. These could be scams.
• Verify crowdfunding campaigns: Platforms like GoFundMe opens in a new window often host personal fundraisers for disaster relief. Verify the campaign’s legitimacy by checking for connections to credible organizations or individuals.
• Watch for red flags: Be wary of organizations that pressure you to donate immediately or lack transparency about how funds will be used.
• Confirm that it’s a nonprofit in good standing: Check its status on charity watchdog resource sites like the Better Business Bureau’s Wise Giving Alliance, Charity Watch opens in a new window and the FTC opens in a new window. These sites can also confirm an organization’s 501(c)3 tax exempt status, which means your donation may be tax deductible.
• Review the organization’s mission and goals: Financially healthy organizations should be transparent about who they are, what they do and why your donation is needed.
• Visit the charity’s website and contact them directly with questions.
• Find out what percentage of your donation will go to the cause itself versus overhead or other expenses. Confirm how the charity communicates with donors about progress toward its goals.

Considerations for making a donation toward natural disaster relief.

If you’re looking to make a donation in the aftermath of a natural disaster — such as the LA fires, hurricanes or tornadoes — follow these best practices to maximize the impact of your contribution:

• Prioritize established organizations: Groups with a track record of responding to disasters, such as the American Red Cross opens in a new window, World Central Kitchen opens in a new window or Direct Relief opens in a new window are often better equipped to deliver aid efficiently.
• Designate your funds: Many organizations allow you to earmark your donation for specific disasters. This ensures your money goes where you intend.
• Consider local nonprofits: Local groups often have a deeper understanding of community needs and can respond quickly.
• Donate supplies with care: While financial contributions are usually more effective, some organizations accept physical donations. Ensure that these items are needed and meet specified guidelines.
• Request transparency: Reputable charities should provide clear information about how they use donations. Look for annual reports or real-time updates on relief efforts.

Making your donation count.

Giving to a charity can be a powerful way to make a difference, but it’s important to approach your contributions with care. By taking the time to research and verify the organizations you’re supporting, you can ensure your donations are going where they’re needed most and having the greatest impact. Whether you’re supporting disaster relief efforts, funding community education or helping your local nonprofit, thoughtful giving ensures your generosity is both meaningful and effective. With the right steps, you can be confident that your contributions are not only helping others but also reflecting your values and priorities. Your local Commerce Banker can help you make sure your donation has a lasting impact.