This is an excellent question and one that everyone should ask before making any donation. It’s important to donate funds to a charity that actually helps others. It’s too easy for the money to be absorbed by administrative costs.
Check The Charity
You can start by looking at the charity website to see what they do and what they say they do with your money. If the site is vague you’re going to need to do some more research.
Some charities will have listed all the ways in which your donation helps. For instance, if you live near the coast, like 80% of Australians do, then you should consider offering to support Surf Life Saving Foundation.
This charity patrols the beaches and saves hundreds of lives every year. Best of all, they list details on their website. For example, all Surf Lifesavers are volunteers, your donation pays for training and equipment. The site even lists the costs of various items to illustrate the cost of running the charity and where your money goes.
If the site of your chosen charity doesn’t provide enough information or you’re concerned, then look at the charity number and check that it is properly registered. This will ensure it’s genuine while you ask them more about what they do with your money.
Check The Books
Charities must have accounts that are open to inspection. This will allow you to see how much they receive in donations per year and what their running costs are. It’s easy to work out how much of the money they receive goes into, helping those in need.
You’ll be able to calculate approximately how much of your donation will actually help others.
Don’t forget, all charities have overheads and these must be covered by the donations they receive. The question is how much do they spend on overheads and is it a reasonable figure?
In most cases you’ll have to decide the answer to this yourself, it’s a personal decision.
Consider The Options
Once you’ve established the charity is genuine and what proportion of the money goes to its cause, you can decide if it is a worthwhile donation.
For instance, donating to Surf Lifesavers means more safety for local beaches. You, or someone you know, can benefit from this.
But, if you’re giving to a national or international charity you may not be able to see the benefit. You’ll then need to question whether this is the best use of the funds. After all, giving people aids benefits individuals but finding cures can transform thousands of people’s lives.
Both types of donation are needed, you simply need to decide which one you prefer to give.
The Bottom Line
Most people give to help others or perhaps in case they need the charity in the future. That’s why, after considering the options and determining whether the charity is genuine, it’s still a good idea to give to something you’re passionate about. That’s why so many Australians support Surf Life Savers, because the beach is part of the Australian way of life.