When the going gets tough, people wake up and remember to give to charities. However it is also the time when charities pop up out of the woodwork. Whether they be legitimate charities, conjured up by publicity hungry celebrities, or started by some shark who is just trying to raise some money for his liquor fund, it’s important to do your homework. Give.org is the website of the Better Business Bureau Wise Giving Alliance.

The BBB Wise Giving Alliance collects and distributes information on hundreds of nonprofit organizations that solicit nationally or have national or international program services. It routinely asks such organizations for information about their programs, governance, fund raising practices, and finances when the charities have been the subject of inquiries.

It’s a great source for information on many charities that are out there. They break down program expenses complete with a pie chart that shows the amount of money that actually makes it to the cause without getting gobbled up by administrative costs and marketing.

For example, this is a break down of the American Red Cross:

Programs

For the fiscal year ended June 30, 2004, the Red Cross’ program expenses were:

• Biomedical 2,133,382,000
• Domestic disaster 261,651,000
• Health and safety 216,265,000
• Community services 135,498,000
• Armed forces 60,896,000
• International 54,963,000
• Liberty Disaster Relief - 9/11 response 52,101,000
• Total Program Expenses: $2,914,756,000

Governance

Chief Executive Officer: Marsha Johnson Evans , President and Chief Executive Officer
Compensation*: $468,599
*July 1, 2003 - June 30, 2004; compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.

Programs: 91% Fund Raising: 3% Administrative: 5%

Now that’s handy! Personally, I wouldn’t settle for less than 90% of my donation hitting the mark. If you take a gander at Dogs Against Drugs/Dogs Against Crime (not that anyone would really be looking to donate to that right now), you’ll see that 84% of their funds goes toward fund raising and a measly 14% goes toward program expenses. It’s also nice to note the executive salaries. The highest paid executive of the Boy Scouts of America makes $1,525,473, whereas the CEO of the Ronald McDonald House Charities makes $0.

If you’re going to give, do some research and make sure you can make the largest impact possible.