In 2022, charitable giving increased by 4% over the previous year. Individual donors contributed $484.85 billion, accounting for 67% of the total. Though generosity is always admirable, current donation increases are unable to keep pace with inflation. There is still time to give this year, and a significant portion of all charitable donations are typically made in December.
This year, there is no shortage of noble causes in need of support, especially given the devastating impact of high inflation on the finances of many individuals and organizations. Nobody wants their money to go to waste, so it’s natural to wonder which charities will benefit the most from your contributions.
We’ve compared over 200 of the most prominent US charities based on their financial performance, transparency, and popularity to help you maximize your impact without compromising your financial health. We’ve also identified the best charity to support each of the most popular causes.
Here are the top charities to support:
Ideal for…
· Rotary International Foundation for Human Services100
· Animal Welfare Institute 97
· Fisher House Foundation for Veterans93
· World Resources Institute
· 98
· Semper Fi and America’s Fund97
· EducationDonorsChoose.org93
· Disaster Assistance
· Everyone’s Hands and Hearts97
· Sierra Club Foundation for Environmental Protection90
· Child Abuse Avoidance
· Missing and Exploited Children’s National Center85
· Community Improvement
· The Gary Sinise Foundation
· World Central Kitchen98 Hunger
· The National Alliance to End Homelessness86
· ReligionSamaritan’s Purse85
· Advocacy for Social Change
· Initiative for Equal Justice99
· Hispanic Federation96 Diversity
Below you can learn more about how to choose the best charity for your holiday donation, as well as how to make the most of it on a limited budget. You can also take a closer look at the criteria we used to select the best charities in 2023.
How to Select a Charity
Find a Cause First: It’s not about the charity itself, but about the work it does. Make a list of the causes that are most important to you before researching specific organizations involved in that field. This will help you avoid losing sight of the forest for the trees by focusing on the beneficiary rather than the conduit.
Request Recommendations: People trust recommendations from friends and family above all else, so solicit charitable suggestions from your social network. You might even want to consult subject-matter experts. Your veterinarian, for example, could recommend a good animal-related charity, and an environmental scientist at your local university could recommend a climate-related organization. All of their experiences and perspectives will undoubtedly assist you in making a better decision.
Do Your Research: It’s always a good idea to do your homework before spending money with a new company, professional, or nonprofit. Examine the website of your chosen charity, as well as how it is being covered in the press and its financials. Examine how much of the organization’s funds are used for its stated cause versus marketing and administrator salaries.
Spread the Love: You are not required to choose just one charity. Donations are similar to crowdfunding in that a large number of people giving small amounts results in a relatively large sum at the end of the day. Don’t try to solve a single problem on your own; instead, consider donating small amounts to a number of charities to help address the various issues that you care about.
5 Donation Success Strategies
You don’t have to do much to make a difference for a good cause. However, keeping the following tips in mind will assist you and your chosen charity in making the most of your good deed.
1. Plan A Budget: It is possible to be overly generous. Donating more than you can afford will only harm your finances and make future contributions more difficult. That means that going overboard now could reduce your overall giving.
· Consider your holiday gift-giving budget as well as your other financial obligations to determine how much you can live without. It’s fine if you can’t contribute much. When it comes to charity, every little bit counts, and something is always better than nothing.
2. Determine Itemized Deductions: If you aren’t going to itemize your deductions, justifying a donation with the potential tax benefits makes little sense. Make a decision now, and remove taxes from your considerations if you intend to take the standard deduction. For more information on making these types of decisions, see our Tax Tips.
3. Consider Processing Fees: Using a credit card to make a donation is a great way to earn rewards while giving back. For example, you could earn $20 by making a $1,000 donation with a card that offers 2% back in cash, points, or miles.
· However, many organizations charge a processing fee for credit card donations. If it isn’t tax-deductible, it can erode, or even eliminate, your earnings, so make sure to check.
4. Earmark Funds for a Specific Purpose: The more you donate, the more control you’ll have over how the funds are used. If you prefer that your donation be used to improve the conditions of animal shelter cages rather than administrators’ salaries or marketing, inquire with your preferred organization about the possibility of designating a donation for something specific. If they say it’s not possible, take your donation elsewhere (or at least express your willingness to do so).
5. Remember about products and services: you don’t have to sacrifice money to make a difference. You can also donate clothes, food, or your time. Many people wonder whether it is better to donate time or money, and we have a convenient call tracking review to help you decide based on your specific situation.