Giving Wisely: How to Assess Charity Credibility Before Donating
We've all heard of online scams, particularly those involving charitable organizations. The conversation about the credibility and trustworthiness of charitable giving continues to be a pressing issue. Additionally, if you have ever donated to a charitable organization, you have probably questioned, “Is my donation going to where it will make a real difference?” These two very essential points are roadblocks that impact the donor-to-charity experience and your ultimate decision.
I’d like to tell you about a conversation I had with someone last month who inquired about our platform. They explained how they had saved up months of their income to donate to a charity. However, despite their good intentions, they faced a tragic experience because of a charity scam. The charity they chose was found online through an advertisement. The advertisement looked promising, asking for funds to provide supplies to people in need. Unfortunately, after making the donation, the donor was devastated to learn that their hard-earned money had not gone to people in need, and the organization was not a registered charity. This scam not only took away their joy and confidence in charitable giving but also left them without a tax receipt.
Recently, I heard of Bri Trypuc, a well-known leader in the philanthropic industry, who also had a detrimental experience with charitable giving. In the article "Are your charity dollars going to the right people in the right place at the right time?" in The Globe and Mail, Bri states that “decades of grants hadn’t gone to the purpose they were intended, her family was devastated”. This horrific experience motivated her to help donors make educated and informed giving decisions. To achieve this, Bri helped formed Charity Intelligence Canada, a registered charity providing Canadian donors with charity facts, figures and ratings to restore confidence and transparency in Canada’s dynamic charitable sector. These two stories highlight the importance of charitable credibility in ensuring your donation goes where you intend. Before I began my role as Project Administration Officer at GiveWise, I had no idea how to ensure my money was going to the right place and people. Now, I've been introduced to simple and efficient online methods that help me make more educated donation decisions. That's why at GiveWise, our vision is to empower people of all means to be intentional and informed donors, to see the effective change they create, and to experience joy through giving.
Here are four ways to assess a charity's credibility before you donate:
- Utilize the Government of Canada's Charity Search Portal
First and foremost, the Government of Canada provides a search portal that gives you easy access to a list of charities and other qualified donees to confirm their registration status. You can search using the organization's legal name or their charitable registration number, usually located at the bottom of their webpage. If they are listed on the website, they are a registered Canadian charity or donee authorized to issue tax receipts.
- Check out the Organization on Charity Intelligence Canada
Use Charity Intelligence Canada to search for the charities you currently donate to or to check out a new charity you are interested in. Charity Intelligence states that they “review publicly-available information on each of the over 800 charities [they] evaluate. This includes their financial statements, annual reports, CRA T3010 filings, and websites. Each charity is consistently rated given the standards set in [their] rating methodology”. Use this tool to educate yourself on the charity's ratings, results, impact, and finances. If you cannot find the charity you are looking for on the website, it does not necessarily mean the charity is not doing good work, as not all charities are included, especially smaller ones. Personally, reaching out to smaller charities allows you to connect with the founder, employees, or volunteers firsthand. It's a wonderful opportunity to make connections and witness the impact your donations can make.
- Connect with the Charity
Is the charity active on social media platforms? Growing up in the age of social media, platforms like Instagram, Facebook, YouTube, or LinkedIn often provide insights into the activities of charities. Are they consistently posting authentic content? Additionally, are you subscribed to their newsletter to gain an insider's perspective on their work? Please note that smaller charities may lack the budget for a full-time social media team. Therefore, it's recommended that you reach out to the organization to see how you can stay informed and connected.
- Search for the Organization in the "Give" Section of Your GiveWise Account
All organizations listed in our system are aligned with the Government of Canada's registered charities and other qualified donees. Therefore, with a simple search, you can trust that 100% of your funds will go directly to the charity you choose. Rest assured knowing that your tax receipt is immediately accessible as soon as you add funds to your account.
I hope these points, which have helped me assess charity credibility, can also benefit you! Please do not hesitate to reach out to us at at support@givewise.ca if you are a donor and want to start your charitable journey with us! After all, our goal is for you to give simply, with confidence, and make a real difference!