We believe that smart giving is good giving and that an educated donor will do more good to help the world than a donor that just randomly throws money at a problem. To that end we've compiled a list of helpful tips for those wanting to make a contribution to a good cause to help them find the best way to do so. These are pretty much generic best-practices for any situation, so feel free to reference these tips whether responding to a short-term crisis or a longer-term issue.
Much of this information comes from Charity Navigator and Rogue Wave Project members' own experience in the non-profit world.
Avoid Newly-Formed Charities and Give To An Established Charity - Establishing a new charity is hard, especially if it is being established in a crisis situation. Think of it this way: would you entrust all your savings in a financial firm that just opened, doesn't even have stationery, and whose employees have no experience in investing money? Doubtful. Most charities are funded via grants and endowments for their first few years while they are establishing their infrastructure and mission. Once an organization gets over this critical hump, donors usually have a good idea of the organization's competency and efficacy. Check out http://www.charitynavigator.org to see how charity organizations measure up.
To Designate or not Designate Your Investment? – This is a tricky question that requires a bit of homework on the part of the donor. In developing nations, charities need more money to develop their basic services and infrastructure, but in developed nations that have been the site of a man-made or natural disaster, that structure usually already exists. Designating your donation for use only in country, then, is a good idea for donations to efforts in developing nations, but usually leads to surpluses in developed nations that then can't be spent on anything. Do your homework and find out which case is most appropriate to the effort you'd like to support. Generally, it is best to trust your chosen charity to spend your donation as it sees fit. But with disaster related giving, you should specify that you want your donation only used to respond to this particular crisis.
Do Not Send Supplies – Knowing that millions of people are desperately in need of food and water, it is hard not to want to pack up a box of supplies and send it to crisis areas. But this type of philanthropy is simply not practical or efficient unless the charity you'd like to give to is specifically asking for them. Before donating old clothes to charity, bear in mind that many countries in which they're distributed are actually hurt economically by having a flood of free clothing enter the country. Instead of boxing up and sending your old clothing, have a garage sale and turn your used goods into cash and donate that to a worthy charity
Be Leery Of People That Contact You Online Claiming To Be A Victim – Unless you personally know someone in a suffering area, anyone alleging to be in this position is most likely part of a scam. Obviously, people affected by earthquakes and floods are in no position to contact you directly for assistance.
Delete Unsolicited Emails With Attachments - Never respond to unsolicited emails. Do not open any attachments to these emails even if they claim to contain pictures of an ongoing effort. These attachments are probably viruses.
Is it safe to make a text donation? So long as you do your homework, yes. All text-based donation services have a 90-day turnaround on the money that you donate. In other words the money you donate today likely won't go to the charity for another three months. This isn't always a bad thing, however. Many charities in times of comparative calm will shore up supplies for deployment in disaster areas. The amount of money donated to them in the immediate wake of a disaster will frequently determine how many of these supplies they release for immediate use. Also bear in mind that most companies that facilitate text-based donation will take a 5% cut of the donation you send. If you mail a check instead, 100% of your donation goes to the charity. Use your best judgement here.
Avoid Telemarketers – As always, hang up the phone do your homework and give directly to a charity.
Do Not Expect Immediate Results, But Do Keep Tabs On What Your Donation Accomplishes- It takes time for charities to mobilize, to assess the problems that need to be addressed and to develop effective solutions. Donors need to be patient so charities will not feel pressured to plunge in and offer ineffective aid, simply to placate impatient donors. That doesn't mean donors shouldn't hold the charities accountable for delivering on their promises! Be sure to follow up with the charity in a few months to find out (a) how your donation was put to use and (b) if the organization needs additional support to complete the recovery effort.