Posted by: John S Kiernan

For the 37th time in the past 40 years, charitable giving increased year over year in 2017, according to Charity Navigator, with Americans giving a total of $410.02 billion – nearly $287 billion of which came from individual donors. And while some forecasts call for a drop in charitable giving in 2018, much depends on how generous we feel this holiday season. ’Tis indeed the season for generosity, as a significant portion of all charitable donations are usually made in the month of December.

There is no shortage of noble causes in need of support this year. But no one wants their money to go to waste. So it’s fair to wonder which charity will make the best use of your donation.

To help you maximize your impact without jeopardizing your financial health, WalletHub’s editors compared more than 100 of the most prominent U.S. charities based on their financial performance, transparency and popularity. And we identified the best organization to donate to for each of the most popular causes.

Here are the best charities to donate to:

Best For…	Charity Name	WalletHub Score (out of 100)
Human Services	Rotary Foundation of Rotary International	100
Veterans	Fisher House Foundation	98
Child-Abuse Prevention	Prevent Child Abuse America (National Office)	98
International Affairs	Doctors Without Borders USA	95
The Environment	Conservation Fund	95
Animals	PetSmart Charities	94
Education	DonorsChoose.org	93
Health	American Kidney Fund	93
Hurricane Relief	Direct Relief	93
Religion	Samaritan's Purse	90
Community Development	The Y (National Office)	89
Hunger	Action Against Hunger-USA	87
Homelessness	National Alliance to End Homelessness	85

Below, you can learn more about how to choose the best charity for your holiday donation as well as how to do the most good on a limited budget. You can also take a closer look at criteria we used to select 2018’s top charities in the Methodology section that follows.

How To Choose A Charity

• Find A Cause First: It’s not about the charity but rather the work that it does. So make a list of the causes you care about most before researching specific organizations involved in that area. This will help you avoid losing the forest for the trees, emphasizing the beneficiary over the conduit.

• Ask For Recommendations: People trust reviews from friends and family above all else, so ask your social network for some charitable suggestions. You may even want to ask subject-matter experts for their thoughts. For example, your veterinarian could suggest a good animal-related charity, and an environmental scientist at your local university could suggest a climate-oriented organization. All of their experiences and viewpoints will undoubtedly help you make a better choice.

• Do Your Research: It’s always important to do your due diligence before spending money with a company, professional or nonprofit for the first time. So check your chosen charity’s website. See how it’s being covered in the press. And look into its financials. In particular, check how much of the organization’s funds are being used for its stated cause compared to marketing and administrator salaries.

• Spread The Love: You don’t have to pick just one charity. Donations are kind of like crowdfunding in the sense that a lot of people giving small amounts leads to relatively large sums at the end of the day. So don’t try to solve one problem all by yourself. Consider giving small amounts to numerous charities in order to help address the various issues that you care about.

5 Tips For A Successful Donation

You don’t need to do much to make an impact on a worthy cause. But keeping the following pointers in mind will help you and your charity of choice make the most out of your good deed.

1. Have A Budget: It is indeed possible to be too generous. Donating more than you can afford will only hurt your finances, making it more difficult to give back in the future. That means overdoing it now could reduce your overall giving. So consider your holiday gift-giving budget and your other financial obligations to determine how much you can comfortably afford to do without. It’s fine if you can’t give much. Every little bit helps, and something is always better than nothing when it comes to charity.

2. Decide On Itemized Deductions: Rationalizing a donation with the potential tax benefits doesn’t make much sense if you aren’t going to itemize your deductions. So make a decision about that now, and remove taxes from your thought process if you’ll be taking the standard deduction. You can check out our Tax Tips for more insight into making these sorts of choices.

3. Consider Processing Fees: Making a donation by credit card is a great way to earn rewards while giving back. For example, you could earn $20 by making a $1,000 donation with a card offering 2% back, whether in the form of cash, points or miles. But many organizations charge a processing fee for credit card donations. That can erode, perhaps even eliminate, your earnings if it isn’t tax-deductible. So make sure to check.

See 2018’s Best Rewards Credit Cards

4. Earmark Funds For Something Specific: The more you donate, the more control you’ll be able to exert over how the funds are used. So if you want your donation to be used to improve the conditions of the cages in an animal shelter rather than administrators’ salaries or marketing, for example, inquire with your organization of choice about the possibility of designating a donation for something specific. If they say it’s not possible, take your donation elsewhere (or at least make clear that you’re willing to).

5. Don’t Forget About Goods & Services: You don’t have to give money to make a difference. You can also donate clothing, food and even your time. A lot of people actually wonder whether it’s better to donate time or money, and we have a handy calculator that can help you make that decision based on your personal situation.

Ask The Experts: Dollars & Cents of Charitable Donations

In search of additional information to inform your charitable giving, WalletHub posed the following questions to a panel of experts. You can check out their bios and responses below.

1. What is the biggest mistake that people make when donating to charity?
2. What red flags should people look for before donating money to a charitable organization?
3. What is your favorite charity and why? // Why should someone donate to your charity?

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• Sidney James Nakhjavan Executive Director of the Cary Center for the Advancement of Philanthropy and Nonprofit Studies and Women’s Philanthropy Board at Auburn University College of Human Sciences
• Ram A. Cnaan Professor, Director of the Program for Religion and Social Policy Research, and Faculty Director of the Goldring Reentry Initiative in the School of Social Policy & Practice at the University of Pennsylvania
• Mary Sexton Director of Major Gifts at Médecins Sans Frontières USA
• Mark Schuller Associate Professor of Anthropology and Nonprofit and NGO Studies at Northern Illinois University
• Lori Ashline Assistant Teaching Professor in the Nonprofit Management Program at Northeastern University College of Professional Studies
• Lijun He Assistant Professor in the Department of Public Administration at Pace University Dyson College of Arts and Sciences

More Experts Scores For All Charities, By Category

 

Charitable Organization	WalletHub Score (out of 100)
ANIMAL-RELATED
PetSmart Charities	94
Center for Biological Diversity	89
Animal Welfare Institute	87
American Bird Conservancy	85
Performing Animal Welfare Society	83
Wildlife Conservation Society	79
CIVIL RIGHTS, SOCIAL ACTION, ADVOCACY
American Civil Liberties Union Foundation	95
Trevor Project	79
Committee to Protect Journalists	78
Children's Defense Fund	72
COMMUNITY IMPROVEMENT, CAPACITY BUILDING
Operation Homefront	83
Hadassah	67
Food Bank for New York City	61
DISEASES, DISORDERS, MEDICAL DISCIPLINES
Pancreatic Cancer Action Network	83
Multiple Myeloma Research Foundation	82
Leukemia & Lymphoma Society	49
EDUCATIONAL INSTITUTIONS & RELATED ACTIVITIES
DonorsChoose.org	93
Scholarship America	83
Hispanic Scholarship Fund	78
ENVIRONMENTAL QUALITY, PROTECTION & BEAUTIFICATION
Conservation Fund	95
Waterkeeper Alliance	87
Sierra Club Foundation	85
Conservation International Foundation	84
Earthjustice	80
Environmental Defense Fund	68
Keep America Beautiful (National Office)	68
FOOD, AGRICULTURE & NUTRITION
Feeding America	80
HEALTH – GENERAL & REHABILITATIVE
Semper Fi Fund	97
Partners in Health	88
Population Action International	85
Bill, Hillary & Chelsea Clinton Foundation	84
Fistula Foundation	75
Planned Parenthood Federation of America	75
HOUSING, SHELTER
Homes for Our Troops	78
National Breast Cancer Coalition Fund	66
HUMAN SERVICES – MULTIPURPOSE & OTHER
Wounded Warriors Family Support	93
The Y (National Office)	89
Unbound	86
charity: water	79
Episcopal Relief & Development	77
National Urban League (National Office)	67
American National Red Cross	65
INTERNATIONAL, FOREIGN AFFAIRS & NATIONAL SECURITY
Rotary Foundation of Rotary International	100
Doctors Without Borders USA	95
Direct Relief	93
World Resources Institute	93
International Rescue Committee	90
American Refugee Committee	88
Action Against Hunger-USA	87
One Acre Fund	87
PCI-Media Impact	85
CARE USA	85
American Jewish Joint Distribution Committee	81
American Jewish World Service	81
Lutheran World Relief	81
Pathfinder International	81
International Peace Institute	80
MAP International	80
Operation USA	75
Save the Children Federation	75
Seva Foundation	75
Children Incorporated	75
Helen Keller International	75
United States Fund for UNICEF	75
International Medical Corps	73
HIAS	71
TechnoServe	70
Compassion International	69
Asia Foundation	67
Population Council	65
HealthRight International	65
World Vision	65
Africare	60
Food for the Poor	59
Grameen Foundation USA	57
Habitat for Humanity International	55
New Israel Fund	47
MEDICAL RESEARCH
Michael J. Fox Foundation for Parkinson's Research	85
Breast Cancer Research Foundation	82
Cancer Research Institute	82
Hearing Health Foundation	81
MENTAL HEALTH, CRISIS INTERVENTION
Partnership for Drug-Free Kids	76
PHILANTHROPY, VOLUNTARISM & GRANTMAKING FOUNDATIONS
Gary Sinise Foundation	94
Marine Toys for Tots Foundation	78
Ovarian Cancer Research Fund	77
Prostate Cancer Foundation	63
PUBLIC, SOCIETY BENEFIT – MULTIPURPOSE & OTHER
Common Cause Education Fund	88
National Military Family Association	82
Navy-Marine Corps Relief Society	82
RELIGION-RELATED,SPIRITUAL DEVELOPMENT
Samaritan's Purse	90
SCIENCE & TECHNOLOGY RESEARCH INSTITUTES, SERVICES
Salk Institute for Biological Studies	80
YOUTH DEVELOPMENT
Girls Incorporated (National Office)	87
Boys & Girls Clubs of America	78
UNCATEGORIZED
Action on Smoking and Health	65
American Kidney Fund	93
Big Brothers/Big Sisters of America (National Office)	77
Brain & Behavior Research Foundation	84
Boy Scouts of America	74
Catholic Relief Services	89
Diabetes Action Research and Education Foundation	75
Dian Fossey Gorilla Fund International	73
Earthworks	88
Fisher House Foundation	98
Guide Dog Foundation for the Blind	71
Guttmacher Institute	75
National Alliance to End Homelessness	85
National Council on Aging	82
Prevent Child Abuse America (National Office)	98
Starlight Children's Foundation (National Office)	71
United Methodist Committee on Relief	72

Methodology

To identify the year’s best charities for holiday giving, WalletHub evaluated more than 100 of the highest-ranked U.S.-based charities, according to CharityWatch and Charity Navigator. In the interest of promoting goodwill and spreading holiday cheer during what should be a merry time of year, we did not consider nonprofit organizations with an obvious political affiliation or those focused primarily on a politically divisive issue.

Using the grading rubric listed below, we scored each organization for which ratings were available from both sources from 0 to 100, with 100 being the most trustworthy with your money. Based on the resulting final scores, we selected winners for some of the biggest categories of charitable giving.

CharityWatch Grade (40 points max)

• A+ = 40 points
• A = 35 points
• A- = 30 points
• B+ = 25 points
• B = 20 points
• B- = 15 points
• C+ = 10 points
• C = 5 points
• Below C- = 0 points

Charity Navigator Score (40 points max)

• 97% - 100% = 40 points
• 93% - 96.99% = 35 points
• 90% - 92.99% = 30 points
• 87% - 89.99% = 25 points
• 83% - 86.99% = 20 points
• 80% - 82.99% = 15 points
• 75% - 79.99% = 10 points
• 70% - 74.99% = 5 points
• Below 70% = 0 points

Program Expenses Score* (15 points)

• 85%+ = 15 points
• 75% - 84.99% = 10 points
• 65% - 74.99% = 5 points
• Below 65% = 0 points

*Reflects the percentage of an organization’s total expenses that are used for its stated cause.

Organization Popularity Score (5 points max)

• 500K+ Facebook Likes: 5 points
• 300K – 499K Facebook Likes: 4 points
• 100K – 299K Facebook Likes: 3 points
• 50K – 99K Facebook Likes: 2 points
• 25K – 49K Facebook Likes: 1 point

Fewer Than 25K Facebook Likes: 0 points

 

Image: Qvasimodo / iStock.

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