How to Evaluate a Charity

In mid-November each year Minnesota celebrates Give to the Max Day. For the past 10+ years thousands of Minnesota schools and nonprofits have gathered together to fundraise for their causes on the same day. There’s a real spirit of communal generosity that inspires giving  —  which I definitely support wholeheartedly.


However, it can also be overwhelming. During this year’s Give to the Max Day I must have received at least fifty emails from the different Minnesota charities I’ve supported over the years, each with a compelling message of why I should give and often a special incentive (like a matching gift). Unfortunately, all of these different asks gave me decision fatigue. It was just too hard to pick only one or two causes. 


If you’re thinking about making a few end-of-year charitable gifts, you might be in the same boat. You have a specific amount you can give away and you want to maximize the impact. So how do you decide who to give your money to amongst all of the worthy causes out there? Consider these things:


  • Mission: The most important criteria I use to make my giving decisions is the organization’s mission. It’s important that the places I’m giving to align with my values and are working to solve problems I’m passionate about. My husband and I have decided to focus on giving to charities that address creativity, sustainability, and education. We decided to give to the St. Paul Chamber Orchestra, one of our favorite organizations, because we heard about their commitment to bring music to underserved communities, make music accessible to people of all ages, and support up and coming composers and musicians. It wasn’t just about paying musicians (though that is INCREDIBLY important — especially right now), it was also about expanding the audience and range of their music.
    Tip: If you haven’t already, getting clear about your own values can really help you in finding organizations that not only align with the causes you believe in but the values you hold dear.


  • Impact: Organizations can say all of the right things, but it’s really important that they are able to show you their “receipts,” the impact they have made with the dollars contributed. How are they tangibly living out that mission? I look for not only inspiring stories of impact but also data on the broader impact the organization has had. If the organization can’t tell me how past gifts have made a difference and how my current gift will contribute to this cause, then I’m not likely to support it.
    Tip: Every organization is different in terms of where they tell their impact story. Most often I’ve found these stories in an organization’s annual report (if they have one), on their website (particularly their donation page), or on their social media pages.


  • Financials: If I’m going to contribute money to a cause, it’s critical that I can trust they will use the money well. There has been a lot of debate over the years about what “yardstick” to use to measure the financial wellness of a charity. In past years, it’s been centered on the ratio of money spent on programmatic costs (funds going specifically to the charity’s cause) vs. money spent on administrative costs (staffing, fundraising, or office space and supplies). People used to say that it was important that at least 90% of the money given go toward programmatic costs — the greater the percentage toward programmatic costs, the better. However, as many people from the non-profit sector have pointed out, these administrative costs are really important in raising awareness and making an even greater impact. I think this ratio is still something to pay attention to, but healthy financial practices are even more important. Instead of doing the digging for myself, I’ll usually take the extra step to run any charity I’m giving to for the first time past Charity Navigator so I can get a second opinion before I give. It takes less than a minute to look it up and skim whatever information is available.
    Tip: If you tend to give to religious organizations, be aware that they will likely not be rated on sites like Charity Navigator because they are not held to the same reporting requirements as other nonprofits. In this case, I recommend finding out as much as you can from the organization’s website and materials before you give.


  • Vision for the Future: Certainly the organization’s past record of impact is important, but I also like to see where they are going. How are they hoping to take their work to the next level? It’s really exciting to imagine how my gifts might contribute to making that vision a reality.
    Tip: Some organizations specialize in meeting the immediate needs of a cause they are serving (i.e. providing medical and housing support after a natural disaster); others are focused on getting to the root cause of a problem and creating systemic change. While stepping forward in time of crisis can be really important and I do support these causes on occasion, it’s really important to me that the organizations I give to are working to actually solve the problem they set out to solve. 


  • Need: Is this a cause that warrants particular financial attention right now? During the pandemic, my husband and I decided to shift some of our giving patterns to support organizations addressing racial injustice. We started with one-time gifts in the wake of the murder of George Floyd, but our research and the opportunity to make a lasting difference in this critical moment have compelled us to keep supporting those organizations in the future.
    Tip: While need is certainly an important measure, I try not to let it sway me too much, especially if I’m planning to contribute to this cause over the long-term with a recurring gift. It’s easy to let the need draw you in without considering the other metrics listed above.


How do you evaluate the charities you give to — and is there one that has a special place in your heart?