Have you been looking for a way to give back to your community and make a positive impact? Supporting a non-profit organization is one of the best ways to do just that. Choosing where to donate to can be somewhat difficult and overwhelming, with so many great causes out there. There are more than 1.5 million non-profit organizations in the US alone! It’s important to understand the challenges of the non-profit world and how to navigate the process of choosing which one to donate to.
Between selecting a cause that aligns with your values, researching potential organizations, and determining how exactly you want your money to be spent, it might seem like you have your work cut out for you. But don’t let that deter you from making the right choice! We’re here to make this process as simple as possible. Join us as we walk through the important steps in finding the right fit for your financial contributions. Remember, no donation is too small!
Let’s clear up some misinformation
The statistics used in relation to non-profit donations are often widely misconstrued. It’s not uncommon to hear numbers as high as 90% when it comes to what percentage of philanthropic dollars come from individual donors. For example, this 2019 report on sources of contributions for non-profits shows that 69% comes from individuals, 17% from foundations, 10% from bequests, and 5% from corporations. Remember that larger organizations skew this data significantly, and the numbers can look very different for smaller non-profits. More recent data on the non-profit economy shows that although 70% of charitable contributions are from individuals, their donations only make up 13% of total non-profit revenue.
This deceptive claim that the majority of non-profit donations come from individuals does a massive disservice to small organizations. It’s easy to feel disheartened as a non-profit worker living under the impression that five-dollar donations will make up the large majority of your annual proceeds. It’s also important to note that this misinformation doesn’t include organizations that are led by marginalized communities that rely on foundations and government funding.
Deciding between small and large organizations
As far as donations go, it’s no secret that the majority of them go to large, well-known non-profits. In fact, they often seem to be the only organizations receiving funding. Smaller, local non-profits often get overlooked in favor of these larger entities due to size and awareness. As a result, the institutions with the most to give are less likely to donate money or resources to smaller organizations when selecting their beneficiaries. So in the case of medical non-profits, hospitals tend to donate exclusively to big-name organizations. Funders have the power to set the benchmark in a way, meaning other donors will often follow in their steps.
Unfortunately, this means that many worthy causes don’t receive the help they need from more prominent institutions. This is particularly true when it comes to breast cancer non-profit organizations like our own. The very nature of the mission limits our outreach capabilities compared to other organizations and thus it can be difficult to generate enough support and donations from those who have the power to provide financial assistance.
The lack of attention given to smaller, local non-profits not only deprives these important programs of much-needed resources but also denies people access to potentially life-saving information or treatments.
It’s important for individuals themselves as well as healthcare institutions alike to step up and show support for these organizations in order for them to continue their life-saving work. Donations don’t necessarily have to be monetary either. Time spent volunteering or spreading awareness can make just as much difference in helping these small charities achieve their goals and making a difference in someone’s life along the way.
Steps to finding your perfect match
Keeping that all in mind, when it comes to picking the best non-profit organization to donate to, it’s important for individuals to take the time to research and evaluate their choices. Follow these steps to find an organization that aligns with your values and spends your funds wisely.
1. Select a cause
As a first step, it’s crucial to select a cause that aligns with your values. Think about what matters most to you. Whether it’s environmental conservation, animal welfare, poverty alleviation, breast cancer support, or something else entirely, and look for an organization that is dedicated to educating the public and making progress on this issue.
2. Research potential organizations
Once you’ve identified an area of focus, you can now research potential organizations that specialize in this field. Use websites such as Charity Navigator and GuideStar to read reviews and get a comprehensive overview of the non-profits that could be a fit. It’s also helpful to dive into the mission statement of each organization and get a better idea of how they’re approaching their given mission. After doing some background research on these potential candidates, narrow down your list based on which ones you feel best align with your goals and values.
3. Determine how your dollar will be spent
Considering practical tips can also help individuals when choosing a non-profit organization. One thing we suggest is to spend some time looking into the financials of each organization. Although it’s not always the deciding factor for where donors should give their money, it’s important to have an idea of where funds are going within each individual charity.
It’s also a good idea to make sure donations are exempt from taxes by ensuring that each non-profit is registered with the IRS as 501(c)(3) status. If you prefer giving locally, check out community foundations or United Way chapters for ideas in your area.
4. Find out if your company will match your donation
Lastly, consider any possible donation-matching programs at work or in your community. Corporate matching gifts are a popular form of philanthropy in which companies financially match donations that their employees make to nonprofits. This type of charitable contribution by businesses allows them to show their support for charities, both large and small. When an employee chooses to donate, they can request that their employer match the donation, usually at a 1:1 ratio. However, some employers may choose to increase the match ratio to 2:1, 3:1, or even 4:1, depending on the cause and their financial capacities.
Donating through corporate matching programs is an excellent opportunity for your dollar to go further and do more good in the world. The process is simple. After donating and submitting receipts from your donation transactions, you can contact your employer’s HR department and ask if they offer a corporate gift match policy. If so, you can request that they match your full or partial donation amount as applicable!
In all cases, picking a non-profit organization should take into account both personal values as well as practical considerations so that donors can make sure their contributions are having maximum impact on the cause they care most about. If you are able to make a donation of any size, pay it forward. You can make a true difference in this world!