5 things to consider when choosing where to give this holiday season

Brandpoint (BPT)
(BPT) – When you think of the holidays, your mind likely conjures memories of gift shopping, cooking and family get-togethers. But the season is more than just what you do in your immediate circle. It’s also a time that brings out the spirit of giving to others in the community as well.

This season, if you’re moved by the spirit of generosity, it’s important to carefully consider where to donate. We all hope to make the biggest impact possible and there is a wealth of worthy causes — so much so that picking the right organization or organizations to support can be a bit challenging.

Julie Sullivan, executive director of Pay Away — a nonprofit dedicated to paying off holiday and other layaway balances for families — often hears from potential donors grappling with this very issue.

“Given our organization has a dedicated focus on inspiring hope and spreading kindness during the holiday season, we often hear from individuals and businesses around the country this time of year that want to make a tangible difference in their communities, but don’t know where to start — or when,” says Sullivan.

Here are a few things to consider when choosing a nonprofit to support based on questions fielded by Sullivan and her colleagues at Pay Away in its more than a decade of making the holidays brighter for as many as possible.

1. Mission and value alignment

You don’t want to give your resources to just any organization. You’ll feel more connected to your giving when you choose one with a mission that resonates with you. Think about your values and beliefs to help narrow down what type of social causes and needs you want to support.

Next, look for aligned organizations. Carefully research and understand each group’s mission, vision and goals. Sites like Great Nonprofits, a third-party evaluator, make it simple to find nonprofits and read up on their causes. This legwork ensures your donation supports something that truly matters to you.

2. Ease of giving

You’re likely already busy buying presents, decorating and cooking meals for family get-togethers during the holidays. The last thing you need on your plate is a complex process for giving to an organization.

Luckily, in the digital age, many organizations have user-friendly apps and websites that make donating simple, including accepting various payment options and frequencies.

“Donors not only want a simple process for giving, but also an easy way to track it, as — depending on the nonprofit and its status — many contributions can be deductible come tax season,” says Sullivan. “Having an easy-to-navigate website with automated communication around donations can provide a lot of efficiency for everyone involved.”

For example, if you visit Pay Away’s giving page, you can quickly set up a one-time or recurring donation and also receive the appropriate documentation for your contribution without any guesswork.

3. Impact

Before giving, make sure that your dollars will create a real impact in communities that matter to you. Take time to assess how an organization uses donations and resources to achieve its stated goals.

“Nonprofit organizations, like any other, will have overhead costs, but some may be higher than others, which can impact the reach of your donation,” says Sullivan. “It’s important to take a critical look at how a nonprofit focuses its funds year after year to feel confident that your dollars are being effectively allocated.”

A good sign that donations are making a difference in the lives of others is if the organization offers measurable outcomes in the communities they serve. For example, Pay Away offers statistics on its website on how many children and families (including military families) it has helped, the number of volunteers that donate their time to the nonprofit and the number of retailers it partners with nationwide. It also regularly includes news stories and other organizational updates on its website and social channels so that donors are aware of its latest activities. These tangible results provide evidence of the positive change your support could make.

4. Transparency

When choosing a charitable organization to support, find one with a reputation of excellence and a history of transparency. The more transparent an organization is, the better you’ll feel about your donations.

In addition to outcomes, see if the nonprofit provides easy-to-access information on their nonprofit status and finances. This information highlights a nonprofit’s legitimacy and provides you with assurance that your dollars are being used wisely.

“There are a number of public resources that you can take a look at to understand how a nonprofit is operating,” says Sullivan. “For example, you can search the IRS website to learn more about an organization’s tax-exempt status and filings, and many organizations include this type of information on their websites as well.”

Another easy way to check an organization’s reputation is by using reliable third-party rating agencies. You can check out GuideStar or the Better Business Bureau, which provide insights on an organization’s reputation and how effectively they use their funds.

5. Timing

Timing is also an important consideration in your giving. According to fundraising technology solutions provider Qgiv, 37% of all giving happens in the last three months of the year.

While it’s noble to want to improve the holidays for others, the best way to achieve this is to donate in anticipation of the holidays, rather than during. By providing nonprofits with funds early on, they — and, by extension, you — can make the greatest impact in a time when many need it the most.

“For our organization, we’re using donations to make a difference year-round, but the holidays are a time with an incredible amount of activity and need,” says Sullivan. “If a donor is particularly interested in funds going toward holiday layaway payoffs, it’s ideal to have those in advance so that we can work with our retail partners to schedule more surprise events and help as many as possible.”

Also, the holidays can be spendy for everyone. By budgeting for and donating earlier, you’ll feel less strapped for cash during the season while also ensuring your money goes further, sooner.

This holiday season, feel good about where you’re giving. By keeping these five tips in mind when deciding what organizations and causes to support, you can rest assured your donation will make a tangible difference to someone this year — and beyond.