What Charities Should You Not Donate To?

There are some things to look out for when deciding which charities to donate to. Don't donate to organization with deceptive fundraising techniques. They could misuse your money. Charities with high ratings spend more money on programs. That means more money will go toward their mission. CharityWatch is a website dedicated to keeping track of charities and their activities. It lists charities with the highest ratings. CharityWatch is updated regularly.

Charity watchdog organizations evaluate the finances of charities on a regular basis. If you're looking for a particular charity, type its name into its website and check the financial records of the organization. Charities must file public financial documents. Several charity watchdog organizations rate charities based on their financial dealings. CharityWatch and GuideStar both rate charities. CharityWatch is a great resource to look up a charity's financial status.

Consumer Reports doesn't recommend choosing a charity based on its name alone. Charity administrators may spend too much money on administrative costs and may even be scams. Consumers should look for charities that are affiliated with watchdog organizations to learn more about their practices. Giving during the holidays can be an especially popular time, with 17 percent of all donations being made during December. But you need to do your homework to avoid falling victim to scams and other frauds.

Big organizations tend to spend more money than smaller nonprofits. They often direct money to disaster relief efforts, which are less cost-efficient than public health programs. They also tend to supplement their agenda with a variety of programs. If you're wondering what charities should you donate to, use Charity Navigator to do your research and avoid giving to the latter. And if you still want to support charities, make sure you check their credentials.

If you have more time to spend on the details of how your money will be used, the Equal Justice Initiative might be the right charity for you. It's dedicated to eradicating racial and economic injustice. Founded by Bryan Stevenson, author of the best-selling book, Just Mercy, EJI supports disadvantaged communities, educates about slavery, and holds a museum in Montgomery, Alabama. The Equal Justice Initiative also has a four-star rating on Charity Navigator.

Another charity to avoid is the Police Protection Fund. This organization has a shady history of extorting money from American citizens. Only 0.7% of the donation money actually went to deserving police officers. The rest ended up in the bank accounts of the founders and shady lawyers. If you are unsure of the impact of your donation, you can volunteer to help. You can also see the difference that your donations make firsthand.

Save the Children is another great charity to support. They help protect and provide homes for orphaned animals and release them back into the wild. The organization also has an Adopt-a-Seal program for donors, which lets them know exactly what their donations are doing. You can also donate to the American Jewish Committee, which promotes human rights and democratic values. You'll feel better knowing which charities to support than others.

Don't support charities with vague donation requirements. A charity's donation requirements should be clearly outlined in its advertising and fundraising materials. Some charities require consumers to donate 40 to 50 percent of their income. Whether or not your donation goes to these organizations should be clear to consumers. If you are not sure, check with your employer if they will match your donation. This way, you can give more to a charity while donating less to another.