Do your homework before you give on ‘Giving Tuesday’

FORT MYERS, Fla. For the past six years, the first Tuesday after Thanksgiving has been used to spread awareness to donate to charitable organizations around the world.

‘Giving Tuesday’, as it’s known, is a way to encourage spending during the holidays on something other than our own families.

But as it rolls around each year, so do the warnings for consumers.

“The biggest risk that the Better Business Bureau hears about is not giving to the correct charity. There’s a lot of similar charity names, as donors we want to make sure we are giving to the actual charity that we intend,” said Bryan Oglesby with the West Florida BBB.

MORE: How ‘Giving Tuesday’ ushers in the holidays’ charitable spirit

Oglesby says to not fall into pressure to give on the spot and make sure you research a charity before you give.

A reputable charity will have no problem being transparent about how their money is used, spent and providing documentation, he said.

Here are five websites to help you do your homework before giving:

1. Check-A-Charity – The Florida Department of Agriculture and Consumer Services requires all charities that solicit in the state to register. Any non-profit organization that calls and asks for money to residents in the state of Florida should be on this website. You can search by name or license/registration number. The listings provide information on revenues, expenses and what percentage of money is used for the charity’s mission versus salaries, administrative costs and fundraising.
2. BBB Wise Giving Alliance – The better business bureau rates charities on 20 different standards. It rates them on whether standards are met, not met or not able to verify. BBB accredited charities must spend at least 65% or more of revenue on program expenses.
3. Charity Watch – The American Institute of Philanthropy does a very thorough analysis to rate charities, diving deep to let people know how efficiently money is spent. The organization does not rate all charities, and only looks at national groups. A grade scale is developed based on the percent of money used on program expenses and the amount it spends to raise $100. A charity does not get an A rating unless it spends 80% or more on program expenses.
4. Charity Navigator – The site includes a listing for more than 1.5 million non-profits in the United States, however on a subset of them is rated. Total revenue and fundraising practices are used to determine if a charity gets a rating. Charities are rating on a four-star scale based on financial health as well as transparency and accountability.
5. GuideStar – Join for free to view thousands of 990 tax forms from non-profits around the nation. The 990 form is the financial information the IRS turns into the IRS every year. The site also allows you to access information provided directly from the no