Money Crashers: How to Find the Best Charities

As the COVID pandemic has swept across America, Brian and I have been among the lucky ones who escaped its worst effects. No one close to us has had COVID, we've both kept our jobs, we don't have kids to home-school, and we've had each other and the cats for company so we didn't go completely insane during the long months of isolation. Of course, our investments took a big hit and we've experienced stress like everyone else, but overall, we know we've gotten off easy.

Since millions of people haven't been so lucky, and since we aren't spending as much money as usual on ourselves, it seems only logical for us to respond by giving more money than usual to charity. If nothing else, it allows us to feel like we're doing something to help with a situation that's almost completely out of our control. But, as I observed during my 2017 Thrift Week, we want to give wisely. If our money isn't really helping people who need it — or if a significant portion of it is being squandered on overhead costs for an inefficient charity — then we might as well just keep it in our own pockets.

For me, this is an easy problem to fix: I just check out any charities I want to give to on Charity Navigator. If they don't meet my criteria, I choose a different charity in the same field that does. But others may not know this trick, or may not understand the point of it.

For them, my latest Money Crashers article lays out the value of choosing the right charities for your money, the criteria for deciding which charities are best (they support causes you value, their money goes mainly toward programs, they're efficient at fundraising, they have good oversight in place, and they're transparent about their practices), and how different charity watchdogs can help you identify them.

In times like this, it's normal to want to help others if you can. But you'll help them the most by giving wisely.

How to Find the Best Charities to Donate to – Characteristics to Look For