When choosing a charity to give to, it may never occur that there are charities that do more good than others. For example, some charities waste a large chunk of money on unnecessary expenses, while others strive to keep costs down, so they are able to spend more on their efforts. To find out if the charity you support is a good one, look into the following areas.

Plan for Donations

First, you should see if the charity has made a statement about how they will use donations. They may not break everything down, but they will usually say what they are funding. For instance, a cancer research charity might say they are funding research for a cure for cancer, or that they are paying scientists to study the causes of cancer. If a charity provides a vague statement without saying specifically what they are doing, they may not be trustworthy.

Proof of Work

Many charities will send out regular newsletters to donors with updates on the work they are doing. Although not all updates will be significant, seeing what the charity is working on is a good sign that work is actually being done. That being said, some charities may not be entirely forthright about the scope of their work, so be cautiously optimistic and continue to vet the charity further before accepting it as legitimate.

Financial Statements

A good charity will be honest about where their money is going. If a charity tries to hide financial statements, you should be wary of donating to them. Furthermore, look at charities’ statements to see if they are spending most of their money on payroll, administrative overhead, and marketing. If they are spending more in those areas than on the cause itself, it is time to look into another option.

Take Reviews Seriously

Finally, do some research on sites like Charity Watch and Charity Navigator. They rate charities and provide insight into whether one is effective or not. Although some charities may not show up on the sites, if they do, you should take the ratings as a serious indicator of whether a charity is trustworthy or not.

Ultimately, the best test you have for whether to donate to a cause is your gut feeling. If something seems off about the charity you support, do some research and reconsider why you give to them.