Editorial: Be smart about who benefits from your generosity

By The Herald Editorial Board

Americans are a generous people. Last year, we donated $373.25 billion to charities, a 4.1 percent increase over giving in 2014, according to the National Philanthropic Trust, a organization that provides expertise to donors, foundations and financial institutions and a charity, itself.

Individuals remain the real philanthropic powerhouse. Corporate giving, totaling $18.46 billion, was a fraction of household donations. Foundations provided $57.19 billion.

Charities depend on that generosity. And between the holiday’s focus on gift-giving and end-of-the-year thoughts about tax deductions, this is a prime time for picking charities worthy of your donation.

But some investigation and consideration is necessary if you want to know that your gift is going toward the purpose you intended and is being used effectively.

Among those who are offering help to “Give Smart,” are Washington state’s Secretary of State Kim Wyman and Attorney General Bob Ferguson, who lead the state agencies that deal most frequently with charities and fundraising organizations.

Unfortunately, Wyman and Ferguson noted, the amount of money that flows to charities also attracts those intent on siphoning off all or part of that generosity for their own gain. To avoid being scammed, both advise not giving in to high-pressure solicitations that demand an instant commitment.

The Secretary of State’s charities webpage offers links to tips for giving wisely as well as detailed information on charities and fundraising groups.

Through the website you can also check to see if a charity is registered with the state. The agency also publishes a report, updated weekly, that lists those groups that raise funds on behalf of charities, typically those who solicit donations by phone, mail and other contacts. The report lists who the fundraiser is seeking donations for and also shows what percentage of what the group raises actually goes to the charity.

While commercial fundraisers can provide a service to charities by doing some of the legwork in soliciting donations, they don’t always provide the greatest return. The Secretary of State’s most recent report showed that the 102 commercial fundraisers — those who compiled with the law to file reports with the state — provided only an average return of 61 percent to charities of the money they collected. And some commercial fundraisers charged more in fees than they raised in contributions for the charities.

“People should know that when someone asks them for a donation, there’s a chance a third party is getting paid to make that solicitation,” Wyman said.

Which is why a direct donation to a charity can be a better investment of your gift, but it’s still necessary to check the charity’s record. The Secretary of State’s website offers links on a number of charity watchdogs, that rate and review charities.

Among the most useful are:

The Better Business Bureau’s Wise Giving Alliance, www.give.org, which accredits charities and offers reports to donors on hundreds of charities, rating them on governance, effectiveness, finances and fundraising practices; and

Charity Navigator, www.charitynavigator.org, which also offers ratings and information on charities, scoring most on the percentage of donations that go toward programs instead of overhead and also on the charity’s accountability and transparency.

Charity Navigator also offers some general tips for donors:

Pick a charity that matches your passion as well as your goals and beliefs and confirm that the charity meets your intentions.

Take a look at the charity’s finances, its stability and its willingness to share its policies and financial health. Look for charities that have good leadership and a low turnover of staff.

Judge the charity on its effectiveness in delivering on what it says it does.

The foundations and charities in our community support needs that otherwise would go unfulfilled. But, in giving to those charities, we have to ensure that the money goes where we intend it to go and does what we want it to do.