Deciding to contribute to a charity can tend to be driven by what you know or how you feel about the organization.
But how to conduct due diligence so you know you’re getting the best ‘bang’ for your buck?
Charitable Due Diligence
How do you know that the contribution you’re making is primarily going towards the intended end result (e.g. education, health, shelter) instead of the charity’s overhead?
It’s crucial to know how any given organization is spending the donations that people make to them.
How can you tell the difference between one that is prudent with their donations and one that isn’t?
Two sites to utilize for conducting your due diligence for your charitable giving are GiveWell and Charity Navigator.
And, for research in general about the state of charitable giving, UPenn has a group working at the intersection of social policy and business, leading to the goal of more effective giving.
University of Pennsylvania’s Center for High Impact Philanthropy
Your goal when giving is to optimally impact the end result, not the organization’s overhead.
These resources will help you to gain that by educating you on the organizations you are interested in and by providing you with related quantitative research.
Next Step
Ready to take the next step and work with a fee-only CFP? Reach out to schedule a Discovery Meeting to learn more.