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Here are the criteria business leaders can use when choosing which charities to support.
Has your business thought about giving back to the community? Donating time, money and resources to a worthy cause is an inspiring way to make a difference, but getting started can be overwhelming. The best approach is to thoroughly research your options so you can make the right choice for your business.
The charity you select should align with your company values and be a good fit for your customers, employees and the community you serve. Check out these tips for choosing the best charity to support.
To select a charity that’s a good fit for your company, break the process down into a few manageable steps.
Engaging with charitable organizations is both an altruistic endeavor and a mutually beneficial opportunity to build a brand community. There are approximately 1.85 million charitable nonprofit organizations in the U.S., according to IRS data, so you have plenty of options.
As you research potential partners, review each one’s website. Look for information on the organization’s programs and the costs your donations might cover. Check out each charity’s brand, online presence and annual reports to get a sense of the organization’s contributions and what resonates with you. Try using GuideStar and Give.org to select a charity to support. These sites will give you insight into each organization’s spending and resource allocation (both of which will come up again later in the process of choosing the right charitable partner).
In your research, you might see people have filed actions or complaints against certain contenders. If so, identify how, if at all, the charity has addressed these. A charity that acknowledges and finds solutions to complaints may still be worth considering. You’re probably better off immediately disqualifying charities that don’t address complaints.
Think about the causes you’re most passionate about and which issues matter most to your employees, customers and clients. What type of organization would they rally behind?
Instead of assuming the answer to this question, ask them directly. Invite your employees to join the search by sending out surveys and forming committees. Gather a variety of perspectives in the same way you would seek feedback on job candidates. Reference your company’s vision statement and mission statement to determine if any potential charitable partners dovetail with your business’s and employees’ values.
Identify causes that relate to your company’s products or services and charities that are actively working to enact change in those areas. Is there a specific resource you can contribute? For example, an office supplies vendor could partner with a charity that works with schools to donate school supplies.
Relationship-building is essential to creating a meaningful impact. Active engagement beyond writing a check opens the door for more creative opportunities, such as providing services, hosting events and launching charitable marketing promotions.
Lauren Von, founder and CEO of Quintessa Marketing who donates 50 percent of the firm’s profits to charitable organizations, said that meeting with potential partners is about more than relationship-building. It’s also a must for making sound financial decisions.
“I give with an open heart and wallet, but I also want to ensure my money is allocated correctly,” Von told us. “If I believe in a particular charity and their finances aren’t optimal, I’ll meet with their finance team to help them. I’ll conduct a thorough review of their finances to assist them in getting on the right track.”
As you review potential partners’ finances, look at their form 990 and other reporting documents. These forms will show whether the organization is in good financial standing. Also review how the charity spends its money — experts suggest choosing partners that use at most 25 percent of donations toward marketing, overhead and administrative costs.
In your continued conversations with potential charity partners as you review their finances, ask about their goals and future plans. At the same time, dig into what they have accomplished so far. Aim to develop a clear understanding of their initiatives and organizational structure.
Greg Weatherford II, director of The Allstate Foundation & Social Impact, shared some questions to ask as you inquire about a potential charity partner’s success stories.
“Do they have a demonstrated history of partnerships that they can highlight?” Weatherford said. “How did they go? Any successes? Failures? Learnings? … Do they have a history of piloting big solutions to solve big problems? Are they willing to try them?”
Online research and financial review are valuable tools in assessing a charity’s fit for your organization, but they don’t always tell you the whole story. Ask friends, family, and other business owners if they have experience with your potential charitable partner. You might hear stories about the organization you won’t quite encounter through other research methods. Stay open to hearing about entirely different potential partners, too — maybe someone in your network knows of the partner you haven’t yet found.
A great relationship with a potential charity partner benefits this partner more than just financially. Yes, you’ll donate cash, but you can also share other resources free of cost. For example, you can offer a professional network or industry insights that your potential partner will find useful. Although charity is ultimately about generosity, you might get something out of giving these resources too: new business connections.
After taking all the above steps, you’re all set to pick exactly the right charitable partner for your organization’s goals. However, Matt Nash, executive director at The Blackbaud Giving Fund, suggested an entirely different way of supporting charity.
“Another way companies can support charities in need is through workplace giving programs,” Nash said. “These programs showcase vetted nonprofits to employees and allow them to make payroll deductions. These automatic deductions are often accompanied by a company match which can double or sometimes even triple the donation amount (depending on the company’s policy).”
Nash noted that workplace giving programs boost employee morale and may be better than traditional charity partnerships for engaging your business community.
“[Workplace giving programs help] employees feel that their employer cares about them and about the cause that is important to them,” Nash said. “Additionally, the company can easily support many charities they have supported throughout the year and highlight their impact on a variety of causes as opposed to one or two. … Companies can feel confident that money is being delivered directly to legitimate nonprofits because each organization is thoroughly vetted.”
There are many factors to consider when you’re looking for the best charity partner for your organization. When you’re evaluating candidates, keep these qualities in mind:
Just as transparency promotes customer loyalty, it’s also valuable in a charitable partner. Look for organizations that share how they use their resources, provide insight into their budget-planning process and publicize the results of their efforts.
Find an organization that regularly communicates progress updates and new initiatives. Some nonprofits increase transparency by sending newsletters that highlight news, achievements and status reports. Another common practice is to share profiles of the charity’s team, comments from the community it serves and donor quotes to bring its work to life.
The charity you choose should have a focused, clear mission. Carefully research the organization’s affiliations and stances on major issues to gain an in-depth understanding of the charity you’re planning to support. If the organization is transparent, it should be easy to find its mission statement and see how its major goals and objectives fulfill that vision. This step will help you determine if the organization’s values align with your company’s and inform how you’ll communicate your charity selection to your staff.
A strong online presence reflects a savvy, well-run company and increases the charity’s legitimacy and transparency. An informative website will keep you up to date on the latest projects, milestones and opportunities for giving. If the charity you choose hosts events in your area, needs volunteers or is fundraising for a specific initiative, a high-quality website will keep you tuned in and help make the most of your relationship. Some organizations have extremely informative websites with engaging content, such as videos, stories, images and educational resources. You can use these materials and resources to help staff and customers learn more about the charity your company supports.
Check out the charity’s social media presence and involvement on online platforms to see how the organization engages with its community. Some organizations use their platforms to educate the public on issues at the heart of their work and connect donors with donation recipients. Fundraising and awareness campaigns on social media, podcast marketing and brand partnerships are a few ways nonprofits engage with their communities and build their brands.
Customer loyalty increases when companies take concrete steps to make a difference in the world. Through your relationship with a charity, you can boost positive feelings toward your company while leveraging your customer base to increase contributions.
When it’s time to make your donations, proceed with caution. Confirm the correct process with a contact at the charity. Don’t make online payments without being certain you’re on the organization’s official website and donating directly to the charity.
Websites like Charity Navigator rate organizations on accountability, finance and trustworthiness to help you make an informed decision. The IRS also has a tool to help you search the agency’s nonprofit database and view each organization’s tax documents. This comprehensive research and fact-checking will prevent you from making a well-meaning donation to a suspicious organization.
When making a financial commitment and publicly declaring your support for an organization, you need assurance that your donation will make an impact and is used properly, especially if you plan to create opportunities for your customers to donate to this charity. People will lose trust if you invest in questionable organizations and encourage them to do the same.
Check various platforms, including social media, for comments about the charity, as well as press coverage and other media for potential red flags. If applicable, consider volunteering with the organization before donating. You will gain more tangible experience, see the charity in action and hopefully be inspired to get involved.
Donate to a stable organization with enough staffing and resources to reach its goals through your contributions. Does the charity have the leadership and structure in place to follow through and enact change? In your research, look for signs that the organization is a well-oiled machine primed for continuous growth.
The desire to give back is always admirable, but doing so meaningfully entails rigorous research. If you don’t quite have time for that, a workplace giving program is a great alternative. When you want to fund good causes, there’s always a way to transform that desire into actual monetary support.
Sean Peek and Scott Gerber contributed to this article.