Five Habits

Habit 1 – First check the group’s identity

Not every group that looks, sounds or feels like a charity is truly a charity. Scam “charities” often adopt names similar to legitimate charities, siphoning off dollars needed for good works. Scam “charities” do double damage – they steal from you, and they steal from those you want to help.

Savvy Donors know how to quickly check a group’s identity.

Habit 2 – Recognize that it’s up to donors to evaluate charities

Most charities must register with the IRS and file annual information returns on Form 990. But the IRS is not set up to evaluate or monitor charities.

The best known evaluation services rate only about 11% of charities.

Savvy Donors now about charity evaluators and how to evaluate charities themselves.

Habit 3 – Keep track of your giving

Keeping an inventory of your giving is a great way to focus and monitor your donations. It’s a great way to review your giving results. And it’s also helpful at tax time.

Savvy Donors keep a giving inventory.

Habit 4 – Budget your giving annually

Budgets bring big benefits. Setting a charitable giving budget makes you think about what portion of your current income and/or net worth you are comfortable donating to charity.

Also consider “social” giving and sharing giving decisions with others.

Savvy Donors know how to budget their giving. And how to compare their actual giving to their budget.

Habit 5 – Give to fewer charities

This might come as a shock: Fewer is better. When you give to fewer charities, you can focus. Your research can be more thorough and more of your giving can have program impact.

Savvy Donors know the value of giving to fewer charities.