Check Before You Give

There's probably not too many things worse than giving to an organization and then later finding out that it was fake or that it did not use the money like you thought it would.  Due to the number of scams and fake charities out there, I rarely give money to charities that I have not personally worked with or observed in action.

Fortunately, if you want a high-level overview of how a charity is doing, you can check with the Better Business Bureau.  While the Better Business Bureau is known for working with businesses, it also runs the Wise Giving Alliance.  The WGA allows you to evaluate a charity's work based on 20 standards.  Charities can also apply for accreditation through the WGA.

Standards for charities include proper oversight (reasonable number of board members and a policy for measuring and reporting effectiveness), handling of finances (spending a certain percentage of donations towards the organizations goals and reporting expenses appropriately), and truthfulness in fundraising.

There are plenty of other factors you should consider when deciding whether or not to give to a particular charity, but if you are unsure, the BBB's site is a great place to start.

Click here to visit Give.org, the home page for the Wise Giving Alliance.