Posted by: John S Kiernan

For the 38th time in the past 40 years, charitable giving increased year over year in 2018, according to Giving USA. Americans donated a total of $427.71 billion – nearly $292 billion of which came from individual donors. Forecasts call for a further increase in charitable giving in 2019, when the final figures are tallied, but 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
Animals	PetSmart Charities	99
Veterans	Fisher House Foundation	98
International Affairs	World Resources Institute	98
Health	Semper Fi Fund	97
Education	DonorsChoose.org	93
Hurricane Relief	Direct Relief	93
The Environment	Conservation Fund	90
Child-Abuse Prevention	Prevent Child Abuse America (National Office)	88
Community Development	Wounded Warriors Family Support	88
Hunger	Action Against Hunger-USA	87
Homelessness	National Alliance to End Homelessness	86
Religion	Samaritan's Purse	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 2019’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 2019’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?

< >

• 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	99
Center for Biological Diversity	90
Performing Animal Welfare Society	88
Animal Welfare Institute	87
American Bird Conservancy	85
Wildlife Conservation Society	84
CIVIL RIGHTS, SOCIAL ACTION, ADVOCACY
American Civil Liberties Union Foundation	95
Trevor Project	85
Committee to Protect Journalists	73
Children's Defense Fund	62
COMMUNITY IMPROVEMENT, CAPACITY BUILDING
Operation Homefront	73
Hadassah	62
Food Bank for New York City	61
DISEASES, DISORDERS, MEDICAL DISCIPLINES
Multiple Myeloma Research Foundation	97
Pancreatic Cancer Action Network	78
Leukemia & Lymphoma Society	69
American Heart Association	45
American Cancer Society	30
EDUCATIONAL INSTITUTIONS & RELATED ACTIVITIES
DonorsChoose.org	93
Hispanic Scholarship Fund	88
Scholarship America	78
Step Up for Students	51
ENVIRONMENTAL QUALITY, PROTECTION & BEAUTIFICATION
Conservation Fund	90
Sierra Club Foundation	90
Waterkeeper Alliance	87
Conservation International Foundation	84
Earthjustice	80
Keep America Beautiful (National Office)	78
Environmental Defense Fund	69
FOOD, AGRICULTURE & NUTRITION
Feeding America	80
Farm Aid	38
HEALTH – GENERAL & REHABILITATIVE
Semper Fi Fund	97
Population Action International	85
Bill, Hillary & Chelsea Clinton Foundation	84
Partners in Health	83
Fistula Foundation	75
Planned Parenthood Federation of America	75
American Sexual Health Association	40
HOUSING, SHELTER
Homes for Our Troops	83
National Breast Cancer Coalition Fund	66
HUMAN SERVICES – MULTIPURPOSE & OTHER
Wounded Warriors Family Support	88
Unbound	86
The Y (National Office)	84
Armed Services YMCA of the USA	80
Episcopal Relief & Development	77
charity: water	74
National Urban League (National Office)	72
American National Red Cross	70
Wounded Warrior Project	30
INTERNATIONAL, FOREIGN AFFAIRS & NATIONAL SECURITY
Rotary Foundation of Rotary International	100
World Resources Institute	98
Direct Relief	93
Doctors Without Borders USA	90
Alight	88
Action Against Hunger-USA	87
American Jewish Joint Distribution Committee	86
Pathfinder International	86
International Rescue Committee	85
CARE USA	85
One Acre Fund	82
American Jewish World Service	81
International Peace Institute	81
Lutheran World Relief	76
PCI-Media Impact	75
Operation USA	75
Seva Foundation	75
Children Incorporated	75
Helen Keller International	75
United States Fund for UNICEF	75
Population Council	75
World Vision	75
International Medical Corps	73
Asia Foundation	72
HIAS	71
Save the Children Federation	70
TechnoServe	70
Compassion International	69
HealthRight International	65
Africare	65
Habitat for Humanity International	60
Grameen Foundation USA	57
AmeriCares Foundation	56
New Israel Fund	52
Brother's Brother Foundation	45
Good 360	45
Feed the Children	43
Amnesty International of the USA	40
Operation Blessing International Relief & Development	35
Cross International	35
MEDICAL RESEARCH
Cancer Research Institute	87
Hearing Health Foundation	86
Michael J. Fox Foundation for Parkinson's Research	85
Breast Cancer Research Foundation	82
Dana-Farber Cancer Institute	54
MENTAL HEALTH, CRISIS INTERVENTION
Partnership for Drug-Free Kids	76
PHILANTHROPY, VOLUNTARISM & GRANTMAKING FOUNDATIONS
Gary Sinise Foundation	94
Ovarian Cancer Research Fund	82
Marine Toys for Tots Foundation	73
Prostate Cancer Foundation	63
United Way Worldwide	53
PUBLIC, SOCIETY BENEFIT – MULTIPURPOSE & OTHER
Common Cause Education Fund	83
National Military Family Association	73
Navy-Marine Corps Relief Society	72
Public Citizen Foundation	38
RELIGION-RELATED,SPIRITUAL DEVELOPMENT
Samaritan's Purse	85
YOUTH DEVELOPMENT
Girls Incorporated (National Office)	87
Boys & Girls Clubs of America	73
SCIENCE AND TECHNOLOGY RESEARCH INSTITUTES, SERVICES
Salk Institute for Biological Studies	75
UNCATEGORIZED
Fisher House Foundation	98
Catholic Relief Services	89
Prevent Child Abuse America (National Office)	88
American Kidney Fund	88
Earthworks	88
Dian Fossey Gorilla Fund International	88
Big Brothers/Big Sisters of America (National Office)	87
National Alliance to End Homelessness	86
National Council on Aging	82
Diabetes Action Research and Education Foundation	80
Guttmacher Institute	80
United Methodist Committee on Relief	80
Brain & Behavior Research Foundation	79
Starlight Children's Foundation (National Office)	76
Guide Dog Foundation for the Blind	71
Boy Scouts of America	69
Friends of Animals	36
Action on Smoking and Health	35
Nature Conservancy	30
First Candle (National Office)	30
Make-A-Wish Foundation of America	25

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.

from Wallet HubWallet Hub


via Finance Xpress