CharityVillage: How to choose a charity

Volunteer & Donate

Path: Main Street : Volunteer/Donate : How to choose a charity

How to choose a charity
Congratulations! If you're reading this page, you've taken the first step in becoming a successful philanthropist -- you're researching! Here are some common questions and answers about how to plan your giving. We hope that you find them helpful. Happy giving!
What's important to you?

Think about the issues that are most important to you. Do you care about the environment? Want to help children? Support the arts? Make a list of the areas that interest you and start planning from there.
Who do you want to help?

Next, look at who you want your donation to help. Do you want to lend a hand to people in your own community or on the other side of the world? Do you want your gift to make a difference locally, regionally, nationally, or internationally?
What kind of work should the organization do?

Once you've looked at the scope and focus of your interests, think about the activities of the organization. Do you want your donation to go towards research that will lead to new knowledge, direct service that will have an impact now, or advocacy work that may lead to changes in the way that things happen now or in the future? Some organizations engage in all of these activities, but most have a particular emphasis on either research, service or advocacy. Consider which of these activities is most important to you.
Should you pick a big or small organization?

If you give your gift to a large organization, it can be part of a bigger whole. You may not be able to fund a cure for cancer on your own, but your gift can help support a larger project that, along with other donors, makes a big impact. As well, giving to a larger organization often affords a greater opportunity for anonymity.
If you give to a smaller organization, your single gift may have a larger impact on the charity. Yours could be the donation that helps keep an important program running or allows a new pilot project to start. You may also have a greater chance of being recognized in the community by giving to a smaller organization. Consider your priorities, both in terms of the impact that you would like your gift to have and how much recognition you would like for the donation.
Should you select a new or established group?

As with the size of an organization, the longevity of a group can also affect the way that your donation is received and used.
Giving to a new charity can give you a greater opportunity for direct involvement in the organization and the chance to have a more significant impact on its development. However, as with any new start-up, you take the risk that the organization will not last to use your donation on its programs or services.
Older organizations sometimes give you less of an opportunity for direct involvement, but there is also more chance that the organization will continue to thrive.

How can I research a specific charity, now that I know my priorities?

The internet is a great place to start. We have links to a wide range of organizations, organized by interest area, in our Nonprofit Neighbourhood.

You can also use a search engine -- try All the Web or Google

How do I know if a charity is legitimate?
All registered charities in Canada are overseen by the Canada Revenue Agency (CRA) (formerly Canada Customs and Revenue Canada). All registered charities receive a business number that looks something like this: 108099979 RR 0001
There are several ways to check if a charity is registered. CCRA maintains a web site with a searchable list of all charities in Canada. Find the search page at: www.ccra-adrc.gc.ca/tax/charities/online_listings/charity_listings-e.html. Alternatively, you can call 1-877-202-5111.

How do I know how much they are spending on overhead?

All registered charities make their financial statements public, so that's a good place to start. Contact the charity that you're interested in and ask to see a copy of their most recent annual report. From there, you'll be able to assess the basic financials.

Some Better Business Bureaus also conduct charity reviews and track complaints against organizations. You might also try contacting your local BBB to see if they have any information about the organizations that interest you.