Choosing Charity
A Smart Shopper’s Guide
Charity starts with only the Best Intentions. But, just like any other transaction involving money, you want to know that you’re spending it as wisely as possible. And, if you are working for a non-profit organization, you want prospective donors to know that your charity is worthy of their money and consideration.
Since we’ve established that the act of choosing a charity is very similar to any sales transaction, what are the key aspects to look for, or, what are we looking for ‘under the proverbial hood’? And for the charities, what are the ‘sales features’ they want to highlight?
Trust is always a major factor, but even more so when it comes to a non-profit cause. Since charity is often a reflection of the donor’s personal values and what they strongly believe in, they want to know that their contributions are only being used with the best possible intent.
The easiest way to gain trust is to earn it. Financial transparency is just what it says: an organization lets potential donors have a clear view of its financial structures. How available and straightforward are the accounting procedures? And how much of the charity’s revenues are going towards the actual stated cause (and how much to the ‘operational’ costs.)
One respected non-profit arbiter suggests that 5 to 35% for overhead costs is reasonable. If more than 35% is being spent on just maintaining the operation’s day-to-day costs, it may indicate inefficient business practices; over 50% could well suggest a definite imbalance towards the fundraising and administrative aspect. That is precisely why financial transparency is so helpful in choosing, and operating, a quality non-profit. (There are any number of reputable online resources that monitor the performance of non-profits in Canada, among them charitydata.ca, which displays up to eighteen years’ worth of financial background. A solid charity not only believes in financial transparency, it relies on it, as an crucial way of assuring current and future donors.)
Back to our smart shopper analogy…whether it’s a household staple, a new car, or charity, Choice is a major consideration. What are the options, when it comes to giving?
In 2018, there were roughly 86,000 registered charities in Canada. Donors can choose from an amazing variety, as an outlet for their generosity and social concern. As they narrow down the possible recipients of their kindness, certain factors will be primary. Is this Charity the only one addressing the issue I’m particularly focused on? Or are there multiple organizations, perhaps with some overlap? Conversely, there may be a ‘growth’ area, for lack of a better term, where a non-profit is addressing a new or under-served issue warranting the attention of potential contributors. Charity is attempting to be the best kind of informed kindness, targeting an area of need.
One term that has recently come into play is ‘tractability’, or whether the issue has a short-term likelihood of being successfully resolved. Perhaps the focus is on a very specialized medical situation, and the goal is a possible cure or remedy. Or the charity is about preserving a special heritage home. If you want your good intentions to have an ‘end-date’ and the resolution that comes with it, then that will obviously factor into your choices.
Whatever your decisions, choosing to care and have empathy is always a wise choice. Let us help you make your generous gift go the furthest, whether it’s through a charitable annuity, Donor-advised Funds, or any number of other financial instruments. At Link Charity, we know how to make Your caring do the most good. Call us today.
