Consumer Reports: Check charities before donating

For many the holiday season is a time to give not only to friends and family, but also to those in need.

In fact, 40 percent of charitable contributions are made in the last few weeks of the year.

But how can you determine if a charity is worthy of your hard-earned dollars?

Consumer Reports took a look at charities, and found some that spend very little on the causes they promote.

"For instance, in its latest yearly IRS filings, the Cancer Survivors' Fund in Texas reported that it spent just eight cents of every dollar on its programs. Eighty-nine cents went to fundraising," said Anthony Giogianni of Consumer Reports.

Another increasingly common way to give: buying from companies that donate part of the sales to charity. But the company gets the tax deduction, not you.

And there's another caution.

"You really have to be careful with impulse giving. It can be hard to determine how much money from the sales actually will go to the charity," Giorgianni said.

If that's the case, consider donating instead to a company that you can do some homework on.

Two reliable watchdog websites that are free - CharityNavigator.org and the Better Business Bureau's Give.org - let you know how much money charities give to the services and programs they support and how much goes for administrative costs and fundraising.

"Some of your favorite charities might not be rated on these national sites because they're too small or too local. That doesn't mean you shouldn't give to them. You just should do more research," said Giorianni.

First step: Check out the charity's website to see its mission and accomplishments. And consider volunteering first. It's a great way to ask questions and get to know the charity from the inside.

Another way to go: Give through a nonprofit fundraising federation, such as United Way, that checks out the charities it represents before allowing them to participate.

LNKS:

CharityNavigator.org

Give.org