Avoid these 6 mistakes when donating to a charity

In a world of prevalent disparities, looking beyond one’s four walls and helping in need can go a long way in facilitating a better world. Over the years, charitable organizations have emerged to support several pertinent causes, from helping underprivileged children receive education to empowering women and preventing child trafficking. Many benevolent individuals regularly contribute small and large amounts to such organizations. However, it is imperative to exercise caution to avoid inevitable mistakes while donating:

Not verifying the charity organization’s credentials
A common mistake is donating to charitable trusts solely based on their vision, mission, and genuine appearance and not researching their credentials. Today, there are several credible online sources from which one can obtain crucial details regarding a charitable organization’s credibility. Therefore, one should always check for minute details before going ahead with the donation.

Being unclear about the cause
It is important to have an in-depth understanding of the cause for which one is donating a certain amount and its impact on society. This helps one contribute to the most pertinent causes in the current day and age and prioritize charitable endeavors accordingly. Another way to prioritize one’s charitable activities is to ponder what aligns with one’s values – a political stance, a particular health condition that one is passionate about eradicating, a certain community one would like to support, etc.

Donating only at the end of the year
Research reports suggest that 31% of all charity donations nationwide occur in December, with 12% occurring in the last three days of the year. Charitable organizations carry out their noble activities all year round. Therefore, it would be more equitable to contribute specific amounts of money at regular intervals throughout the year rather than make a bulk donation at the end of the year. Spreading one’s donation can help charitable organizations plan their tasks more efficiently.

Taking an emotional decision to donate
Although a significant aspect of donation is sensitivity, making rash decisions from an emotional standpoint can make one highly susceptible to being financially exploited. Hence, it is important to avoid making emotional decisions. Instead, one must wait to learn more about the trust before donating.

Donating too little or too much
Sometimes, one may donate much less than one can afford due to the fear of financial crunch. On the other hand, individuals may sometimes end up over-donating due to a sense of passion for a particular cause. Both these scenarios may be easily avoided if one plans the donations well, dedicating roughly 10-15% of one’s income toward charity.

Donating only to receive a prize or benefit
Sometimes, the motive behind one’s charitable endeavors may be receiving a monetary or non-monetary prize or a particular benefit, such as a tax waiver. While this driving force may also cause one to donate to various charities, it does not come from a place of genuine intention to help. Thus, one may not have a personal donation goal or experience the ultimate satisfaction that philanthropists derive from their activities. It is important to remember that any prize or benefit from donation is only a by–product of the activity and not the end goal.