Profitt Report: How to know where your charity donations are going

Photo credit: MGN

‘Tis the season for good will toward our neighbors and many are moved to donate to charities this time of year. However, it’ll feel even better to give if you know that the people you donate to are using your money for what counts and not the CEO’s bottom line.

“If you haven't taken the time to evaluate if the charity’s using your money effectively, then it's not going to cause as much progress as you hope it would,” said Sara Nason with the website Charity Navigator.

Charity Navigator is a free resource that helps you figure out which charities are worth your hard-earned cash.

“Donors able to understand how they're money is being used, where their money is going and really if they can trust the organization to use their money effectively,” Nason said.

Most charities are required to provide tax information and that data is available to all of us. It can be complicated to sift through, so Charity Navigator breaks it down.

“You can really see on average how much of your dollar is going specifically to one cause or the other,” Nason said.

Here’s a good rule of thumb: Nason said about 75 percent of your donation should be used on their programs and services. The rest would go to paychecks and operating expenses.

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