When Donating Money, Much of It Might Not Even Reach the Charity You’re Supporting
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When Donating Money, Much of It Might Not Even Reach the Charity You’re Supporting

Third-party fundraisers can take significant cuts before your gift ever arrives

July 31, 2025

Giving to a worthy cause feels good, until you learn that a large slice of your gift may be eaten up by professional solicitors, not the charity itself. Before you hand over your credit card number, follow these steps to make sure your donation does the most good.

Ask Who’s Calling

If you receive a phone call, email or mail solicitation, always ask directly whether the caller works for the charity or a hired fundraising firm. Genuine charities will tell you if they use telemarketers, and they should be able to name the fundraising agency and its fee structure.

Find Out the Fee Split

Professional fundraisers typically take 20–60% of each gift to cover outreach costs and their own profit. Never accept a blanket promise that “100% goes to charity.” If more than 30% of your donation covers solicitor fees, consider giving directly instead.

Donate Directly to the Charity

The simplest way to ensure your entire gift reaches the intended nonprofit is to give via its own website, mailing address or official donation portal. Avoid any intermediary link or “click-to-donate” page you didn’t verify on the charity’s site.

Research Before You Give

  • IRS Exempt Organization Search: Confirm 501(c)(3) status at apps.irs.gov/app/eos.
  • NC Department of Justice: Check charity registration and complaints at ncdoj.gov/charities.
  • Better Business Bureau Wise Giving Alliance: See charity ratings at give.org.
  • Charity Navigator & GuideStar: Compare nonprofit financials and transparency before deciding.

Watch for Impostors

Scammers often adopt names similar to well-known nonprofits (e.g., “American Helping Fund” instead of “American Red Cross”). Always type the charity’s name into your browser, or use vetted portals—rather than clicking unknown links.

Consider Non-Monetary Support

Donating supplies, volunteer time or professional services can deliver assistance at 100% value. Local food banks, animal shelters and schools often have wish lists, so you know your gift goes straight to those in need.

Use Donor-Advised Funds or Payroll Giving

Donor-advised funds (DAFs) and workplace giving programs typically pool donations, reducing solicitation fees. You still choose the final recipient, but more of your contribution goes toward programs instead of marketing.

Keep Records for Tax Purposes

Save receipts, acknowledgement letters and credit-card statements. Only gifts to IRS-recognized charitable organizations are tax deductible. Consult a tax advisor if you have questions about eligibility.

Report Questionable Solicitations

By verifying the charity, giving directly and exploring non-cash ways to help, you’ll ensure that your generosity reaches the people and causes you care about most.