Charitable Giving: What to Do Before You Donate
Presented by David Berman
Making a charitable gift can be a fulfilling experience, but before you donate, it’s wise to do a little
research. Taking the time to learn about a charity can help you determine whether the nonprofit
organization is legitimate and whether its charitable purposes match your intentions. Use the five-step
checklist below to guide you through the process.
- Ask the charity for information. Request information from the charity about its mission and
goals. Find out how your donation will be used, determine what percentage goes toward
charitable purposes (versus operational costs), and request proof that your contribution is tax
deductible. If the organization uses paid solicitors, it is required to identify those solicitors and to
disclose the percentage of your donation that will be used for their compensation. - Use your state’s resources. Most states require nonprofits that solicit charitable donations to
register with the state attorney general. The attorney general’s office is also responsible for
investigating fraudulent practices of charitable organizations and other entities posing as
legitimate charitable organizations. Visit the website of the National Association of Attorneys
General (www.naag.org) for a list of the state attorneys general and their contact information.
Charities that have established themselves in nonprofit corporate form are also required to
maintain a registration file with the state secretary of state. The file should include the charity’s
official name and contact information, the names of executive officers and other management
personnel, and the organization’s purpose. - Double-check the charity’s name. When naming a charity as a beneficiary, always
double-check the organization’s name to eliminate any ambiguity. Using the wrong name or a
nickname could cause confusion regarding the proper recipient. Keep in mind that illegitimate
organizations often use names that sound similar to those of legitimate charities in order to take
advantage of unsuspecting donors. GuideStar (www.guidestar.org) is a helpful resource for
finding information on charities. - Verify the organization’s status. Ask to see the charity’s IRS letter recognizing its tax-exempt
status and eligibility to receive tax-deductible donations. Or, refer to the IRS’s list of charities in
good standing at www.irs.gov/Charities-&-Non-Profits/Search-for-Charities. You can also call the
IRS toll-free at 877.829.5500. Be sure to obtain the charity’s tax ID for future reference. - Keep complete records. For donations less than $250, a canceled check or credit card
statement is generally sufficient for IRS purposes. For larger donations, obtain a properly worded
receipt from the charity documenting your donation. Also keep in mind that your tax deduction is
reduced by the fair market value of any gift, meal, or other incentive you receive from the charity.
As a general rule, do not send cash.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although
we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional
tax advisor, or lawyer.
© 2025 Commonwealth Financial Network®