Many charities have been dealing with bad press after a report of the worst charities revealed that some aren’t giving back to their causes. In addition, people just don’t seem to be giving as much as they can, but the demand for causes is on the rise. Making donations to different causes is an investment in society. Whether you invest in a global charity or an organization right around the corner, there are certain strategies you can develop to make better charitable investments.
One thing that major charitable investors like Scott Reiman and Warren Buffet have in common is that they diversify their charity investments. They give to causes that speak to them but also help the local community. For example, they may give 20 percent to the arts or $5,000 a year to a scholarship fund for local students. These are important measures that help people on a personal level, but you can also donate to improve buildings, create sustainable energy and found programs that will enrich kid’s lives.
The key thing to remember is that you should always research a charity or organization before giving any money. Non-profit organizations should demonstrate a steady performance that shows how much they give back to their causes. When you have similar charities with a common cause, pick the one that has the longest and most successful track record.
Another important thing is to invest in charities that you move you in some way and that you have experience with. In this case, you can offer more than just monetary donations. You can offer financial advising, educational support, technology or other benefits to the charity to improve their projects. It’s best to follow your passions when it comes to charity because you’ll also be more involved.
When you research different charities, you should look for the non-profit organizations with the highest percentages going to the cause that they serve. Many organizations pay six figures to executive directors or millions to for-profit advertising agencies, which decreases the funds for the actual cause. Charity Navigator is one tool that you can use to look up different charities and see how much they’re giving to the cause.