Where to donate money: how to give well and make it count

Start with what you care about

The best place to give is somewhere doing good work on something you actually care about. Before you look at any organization, answer three questions.

• Which cause? Hunger, health, children, animals, the environment, housing, disaster recovery. Pick one or two rather than spreading small amounts everywhere.
• Where? Your own street, your town, your country, or places where a dollar stretches furthest. Giving close to home lets you see the result; giving further afield can reach people with far fewer resources.
• What kind of help? Some groups deliver meals, medicine or shelter directly. Others work on research, advocacy or long-term change. Direct services are easier to see; longer-term work can matter just as much but takes more trust.

Once you know the answers, the list of places to give shrinks to something you can actually check.

Where giving goes furthest: effective giving

Effective giving asks a simple question: for the money I have, where will it do the most good? Answering it takes two things. The first is evidence: does the program actually work? The strongest evidence comes from careful studies, including randomized evaluations that compare people who received a program with similar people who did not. The second is cost per person helped: two programs can both work, while one helps many more people for the same money. Researchers also ask whether an extra gift would pay for more of the work, and whether the charity is open about its results, including the disappointing ones.

None of this means feelings do not matter. Most people give best to causes they care about. Effective giving simply asks you to bring the same care to which approach will make the most of your gift. A few areas come up again and again as places where well-run giving is widely considered to go far.

• Global health. Some health programs in low-income countries are among the most studied and cost-effective ways to help people that researchers know of, such as insecticide-treated bed nets and preventive medicine against malaria, or vitamin A supplements for young children.
• Direct cash transfers. Giving money directly to families in extreme poverty lets people decide what they need most, and there is a large body of research on what it achieves.
• Education. Programs that teach children to read or provide tutoring can change the course of a life. The best ones measure whether results actually improve, rather than only counting books handed out.
• Your own community. Community foundations pool gifts from local people and make grants to nonprofits nearby, which suits you if you want to give close to home without researching every group.
• Local mutual aid. Neighbors organizing to meet each other's needs, such as groceries, rent help or rides, are often informal and fast. Many are not registered charities, so gifts may not be tax-deductible.

Checking a charity, briefly

You do not need special expertise to check a charity. A few plain questions will do.

• Is it registered? Search its exact name on your country's or state's official charity register.
• Does it publish a recent report? Look for real results, such as people helped, not only stories.
• Can it explain what the money does? A clear answer is a good sign; a vague or defensive one is not.
• Does it pressure you? A real charity is glad for you to take your time and give through its own website. Be wary of invented deadlines and requests for gift cards or cash.

Overhead alone is not the test: low costs can mean an organization is starving itself of what it needs, so weigh it against results. And neither small local groups nor large international ones are better in every case. Local groups are easy to see and visit; large ones can reach further and usually report more formally. Check each the same way.

How to donate: one-off or monthly, and how to pay safely

Both work, and the right choice depends on your budget and the charity.

• One-off gifts suit a specific need, such as an emergency appeal or a project with a clear goal. They are also a good way to try an organization before committing.
• Monthly gifts give a charity income it can plan around, which helps it hire, budget and keep programs running between appeals. A small regular amount often adds up to more over a year than a larger gift you keep putting off.

Whichever you choose, give directly through the charity's own website, or by check or credit card, rather than through a link someone sent you. Be wary of anyone who asks for cash, gift cards, wire transfers, payment apps or cryptocurrency; a credit card or check leaves a record. A friend sharing a fundraiser does not mean they checked it, so go to the charity's own site instead.

Setting a yearly giving budget helps too. Deciding the amount once makes it easier to say yes to the causes you have chosen and no to the rest without guilt. If you start a regular gift, review it once a year.

Tax receipts and deductions, in general terms

In many countries, gifts to registered charities can reduce your tax bill, but the rules depend on where you live, what you give and how you file. Check that the organization can receive tax-deductible gifts, and ask a tax professional about your own situation.

• Keep records. Save a receipt or written acknowledgment for every gift. In the US, to claim a deduction for any single gift of $250 or more, you need a written acknowledgment from the charity.
• Know the local schemes. In the UK, for example, Gift Aid lets a charity claim extra money from the government on your donation if you are a taxpayer and sign a short declaration.
• Ask how gifts are handled. Newer groups sometimes receive donations through a fiscal sponsor: an established nonprofit that accepts gifts on a project's behalf while it applies for its own tax-exempt status.

Random Acts Club works this way. Donations to the club's work go through a fiscal sponsor, so they can be tax-deductible while the club pursues its own 501(c)(3) status. The club will explain how your gift is handled and how you will receive a receipt; the section on giving through Random Acts Club, below, tells you how to ask.

Stretching your gift: matching gifts, giving circles and funds

• Matching gifts. Many employers will match donations their staff make to eligible nonprofits, often dollar for dollar, which can double a gift at no extra cost to you. Some programs also cover retirees or spouses, or reward volunteer hours. Ask your human resources team or check your benefits portal, since each program has its own rules and deadlines. Charities also run matching campaigns, where a donor agrees in advance to match gifts made during a set period. They can be a good moment to give, as long as you would have chosen that charity anyway.
• Giving circles. A giving circle is a group of people who pool their money, and often their time and skills, then decide together where to give it. Pooled gifts are larger, members share the work of researching organizations, and many people find a circle keeps them giving regularly. To start one, agree on a cause, a contribution that suits everyone, and how you will decide.
• Donor-advised funds. This is a giving account held by a public charity. You put money or other assets in, the sponsoring organization takes legal control, and you recommend which charities receive grants over time. People use them to give in a planned way over several years or to involve family in choosing grants. Fees, minimums and tax treatment differ, so talk to a tax professional before opening one.
• Community foundations. These accept gifts from individuals, families and businesses and know local nonprofits well. If you want local advice as well as a place to give, ask your nearest one how it works with donors.

Volunteering: giving your time and skills

Giving back does not have to mean giving money. If you are searching for volunteer opportunities near you, the best ones are often closer than any website suggests, and volunteering lets you see an organization's work before you decide whether to donate to it too. If your budget is tight, it is a real alternative, not a lesser one.

• Ask the places you already know. Local nonprofits, food banks, shelters, libraries, schools, places of worship and community centers often need help. Friends and neighbors who already volunteer can tell you what a place is really like.
• Look online. Volunteer-matching websites list opportunities by location and interest, including some you can do from home.
• Use your work skills. Professionals in finance, law, marketing, design and technology can take on a defined project, such as a budget, a website or a fundraising plan, that a small charity could not otherwise afford.
• Consider board service. Charities need board members with judgment and experience. It is a serious commitment, so ask what is expected before you say yes.
• Give goods that are needed. Shelters, pantries and animal rescues often keep a wish list. Ask before dropping things off.

Start with a single shift or a one-day event before committing to a regular role. For more ways to help that cost nothing, see our guide to making the world a better place.

Giving through Random Acts Club

Random Acts Club is a movement of kindness, and it is also a place to give. It offers a more personal kind of giving, where you can see exactly what your gift does. There are two ways to take part.

• Sponsor a specific request. People ask the club for an act of kindness, from a small practical need to something larger. As a sponsor, you choose a request and make it happen, so a particular act of kindness reaches a particular person.
• Fund the club's own projects. Alongside requests, the club organizes acts of kindness of its own, from everyday gestures to larger efforts. You can give toward these, and the club is glad to tell you about its current and future projects.

Donations go through the club's fiscal sponsor, a registered nonprofit that receives gifts on the club's behalf, so they can be tax-deductible while the club pursues its own 501(c)(3) status. To give, or simply to ask questions, get in touch through the sponsor page. The club will explain how your gift is handled and how you will receive a receipt.

Some requests are also discussed on the Random Acts Club podcast, where guests talk them through and may choose to help.

And if you, or someone you know, could use a kind act, you can make a request.

A short giving plan

• Set a yearly amount you are comfortable with.
• Choose one or two causes, and decide how to split your giving between high-impact work further afield and your own community.
• Run the quick checks on each organization before you give: registered, recent report, clear about what the money does.
• Choose one-off or monthly, pay safely, and keep every receipt.
• Look for ways to stretch your gift, such as an employer match or a giving circle.
• Add time and skills where you can.
• Keep some room for the personal: a specific request you can sponsor, or a neighbor who needs a hand.

Organizations and the rules on giving change over time, so check the current picture before you give.