People are often happy to help, if they know that the assistance will be used in the manner that is intended. Many businesses are happy to help as well. A challenge that arises though is how to help people in developing parts of the world. Often, we have little or no experience with the other parts of the world or with charities in those areas.

We may not want to contribute through a government organization because, in all too many cases, our donations may be used to reduce the government’s commitment to the effort. How can we investigate the charity’s background and be certain that it is legitimate? Even if it is legitimate, how do we compare the charities to be sure that we are contributing to charities that will be more likely to use the money or other resources efficiently and effectively?

One resource that seems to be well organized is Charity Navigator.  While the organization has a nice website, its Charity Navigator’s credibility is increased by the substantive content on its website.  In looking at the website, one of the things that stood out was its decision not to accept donations from the charities that it rates.  While there are ways around such positions, its decision is consistent with an organization that wants to provide objective ratings.  Such donations could create bias in the ratings.  The organization says that it is registered under section 501(c)(3) of the Internal Revenue Code as a nonprofit.  This is a representation that can be easily verified.  Another fact that stands out is the organization’s history.  Many organizations choose to provide little history about themselves.  The more one says, the greater the risk is for an organization to make a mistake about its history.  Still if an organization says very little, it is possible to be left wondering if the organization is “real.”

According to Charity Navigator, ACCION International, Women for Women International, and Mercy Corps received high rankings.  After identifying potential charities, it is a good idea to discuss the charities with people who are involved in the area of interest to learn about their reputations.  After all, is due diligence any less important in selecting recipients of charitable dollars than in conducting strategic sourcing (procurement) and sales activities?

Filed by Coleen Davis at 9:44 pm under Business Tips, Corporate Citizenship