Charity Watchdogs Help Philanthropists Give to the Right Pockets

by Rachel Marshall

Around the holidays, there are a variety of bells that we have come to known: sleigh bells, jingle bells, church bells and the charity bells. Every year you walk past the bundled-up volunteer ringing their bells and greeting strangers in hopes that you will drop leftover change from your pocket or a couple dollars from your wallet into their bucket.

The holiday season is commonly a season of giving. The M+R Benchmarks annual report examines data from more than 300 participants in philanthropic spaces to determine current trends in giving. The 2024 report found that 40 percent of annual giving occurred in the month of December.

Charity Navigator, an online guide to intelligent giving, saw its Giving Basket facilitate $41,747,707 in donations from 51,345 donors to 25,768 charities. Donations go to a wide range of causes, from education, human services, environment and animal-focused charities to the arts, culture and humanities and more. Religious groups remain to receive the most donations out of all causes.

The idea of philanthropy is rising as donations increase annually. With thousands of charities and a vast variety of causes to choose from, giving can feel a little overwhelming. Where do you want your money to go? What do you want your money to impact? How much should you give? As technology advances and the act of donating is as easy as entering your credit card information online or through an app, anyone can give in a blink of an eye.

But how can you make sure the charity you want to give to is legitimate? How can you ensure that your hard-earned money is going to the right place and in the correct hands? How do you know your dollars are being used effectively? How do you know you aren’t being ripped off and you are actually paying for someone’s vacation?
Luckily, there are online resources that help philanthropists like you by acting as charity watchdogs to make sure what you give is actually impacting the cause you care about.

CharityNavigator.org takes the act of giving seriously. With more than 225,000 charities rated, its comprehensive ratings shine a light on the cost-effectiveness and overall health of a charity’s programs, including measures of stability, efficiency, and sustainability. The metrics inform donors of not just where their dollars are going but what their dollars are doing. Like the organizations rated, it’s a 501(c)(3) nonprofit, too, that doesn’t charge the charities evaluated, ensuring ratings remain objective. One sage bit of advice on their site: “Ask the charity what their Employer Identification Number (EIN) is. If they don’t have one -don’t donate.” Some of Charity Navigator’s four-star-rated funds include the Elton John AIDS Foundation, the Innocence Project, Inc., Bring Change 2 Mind, led by Glenn Close, which fights stigma and raises awareness about mental health across the US; and Joyful Heart, founded by Mariska Hargitay, which supports survivors of sexual violence and works to end the rape kit backlog.
Another great resource to check out CharityWatch.org. It was founded over 20 years ago as the American Institute of Philanthropy. It states, “CharityWatch does not merely repeat what a charity reports using simplistic or automated formulas. We dive deep to let you know how efficiently a charity will use your donation to fund the programs you want to support. CharityWatch exposes nonprofit abuses and advocates for your interests as a donor.”

CharityWatch rates charities using the familiar A to F system. Members can access detailed rating information whereas non-members can see only detailed information for the top-rated charities. They also have a long list of articles covering a range of topics that inform and raise awareness in the world of philanthropy.

Lastly, there is Give.org, which lists Better Business Bureau standards for accountability. Of 20 standards listed, pay attention to the percentage of gifts dedicated to programs.

Give.org charity reports are easy to navigate with tabs that include reports, programs, governance and staff, fundraising, tax status and financial reports. The financial reports break down where the funds come from and where the money is going. There is a convenient sharing option available as well as the ability to print the reports. Their News section is updated frequently and includes three topics annually that address current events such as how the charitable sector can navigate the rise of Artificial Intelligence with purpose and accountability.

The holiday season is busy; it’s easy to go online and submit a donation in seconds without thinking twice about where it could be going and what it could be used for. So, take a break from wrapping gifts and baking goodies to visit these online resources; they’re here to help ensure your hard-earned money is going to the right pockets and is making a true impact to the cause you care most about.

Sources: charitynavigator.org, charitywatch.org, give.org and mrbenchmarks.org.