Tag – Donors

Tips and information on effective giving

Donors

Charities To Support This #GivingTuesday

Giving Tuesday has become a global phenomenon, driving donations of over $400 million dollars in 2018 alone. A yearly celebration of giving on the Tuesday after Thanksgiving, it’s a natural time to reflect and kick off the giving season around the world. This year, when considering a worthy nonprofit to donate to on #GivingTuesday, we hope you’ll choose one with measured impact on its community.

We’ve made it easy and highlighted the nonprofits that take the number one spot on each of our Top Lists, representing the most cost-effective charities on ImpactMatters. Explore the list and let us know ...

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Categories: Effective Giving

Donors     Researchers     Nonprofits

Introducing Impact Ratings

We launched ImpactMatters with a simple goal: help donors find high-impact nonprofits. With thousands of charitable nonprofits in the United States covering countless causes, the prospect can be daunting. After lots of tinkering, we have come up with a solution we like — and we hope you will too. Our team analyzed 1,000 nonprofits to calculate how your donation to that nonprofit changes a life. Then, we built an easy-to-use rating system that identifies nonprofits that do the most good.

We encourage you to explore our site:

  • Search for a specific nonprofit or filter nonprofits by cause, program type or ...

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Categories: Product Updates

Donors

Effective Giving Guide

America is one of the most charitable countries in the world, giving away $400 billion a year. Donors support a rich array of organizations, from large research universities to local homeless shelters.

For many, giving can be challenging. With 1.6 million nonprofits in the United States, choosing just the right one can be a major hurdle.

This guide is here to help. In it, we tackle some of the thornier issues around giving. Our objective is to share with you some tools that you can apply to your everyday giving choices, and hopefully make your next donation a little bit ...

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Categories: Effective Giving

Donors

What is Cost-Effectiveness?

Why does it matter?

Cost-effectiveness is often viewed as anathema to the nonprofit sector. We see it as the opposite. Take a simple thought exercise: A program has a limited budget of $100,000 to improve literacy in a community. It can choose between two approaches to do so: one that can boost literacy by a grade level for 100 students ($1,000 per student) and a second that can also boost literacy by a grade level but for 200 students ($500 per student). All else equal, a sensible program administrator would choose the second, as of course it reaches twice as many students. 

This is ...

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Donors

Why Not Overhead?

The overhead ratio is the amount of money a nonprofit spends on administrative and fundraising costs as a proportion of total spending. If a nonprofit has an overhead ratio of 15 percent, for example, it means that for every dollar donated, 85 cents go to running programs while 15 cents cover the nonprofit’s fixed costs. 

Historically, donors and nonprofit raters have resorted to overhead to determine whether a charity is worthy of donation. We get the impulse — we all want our donations to matter, and we feel like they matter more if they're spent on programs rather than overhead. ...

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Donors

The Counterfactual

You are walking down the street to get to an appointment a mile away. Walking there should take you 20 minutes. A friend drives by, sees you, and gives you a lift. Instead of taking 20 minutes, you now get there in 5 minutes. Would you have gotten to your destination even if you didn’t get the ride? Chances are, yes. If you were to measure the impact of your friend's intervention in your journey, they wouldn't get credit for getting you to your destination (since you would have gotten there without them). But — your friend would deserve credit ...

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Categories: Understanding Impact

Donors

Tips for Researching Nonprofits

There are over a million nonprofits in the United States. Even if you have a specific cause in mind (for example, food banks), a Google search can bring up thousands of nonprofits. How do you choose one that will use your donation effectively? In this post, we provide some tips for finding a nonprofit you can feel confident giving to.

These tips are suitable for donors at any stage of their giving:

  • Discovering which causes to support? Start at Choose a Cause.
  • If you’ve homed in on a cause but need guidance on how to find a nonprofit working ...

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Categories: Effective Giving

Donors

5 Ways to Choose How Much to Give

How much should I give? It’s a tough question. What can I afford? What should I sacrifice? There isn’t a single answer, but there are some strategies for making the decision. Here are five approaches:

1. Give what other people think you should

Ideas42, a firm that uses insights from the behavioral sciences to address complex social problems, surveyed 500 people about the average household in their neighborhood. They asked, “What percent of their total income do you think they should give to charity this year?” The average answer: 6 percent of yearly income.

They found some other interesting ...

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Categories: Effective Giving

Donors

Stop Worrying About Nonprofit Fraud

Stories of nonprofit waste and fraud are often top of mind when making decisions about whether and where to give. A survey of people with high net worth found that the most common reason they don’t donate more to charity is out of fear that their gift “will not be used wisely.” It’s something we, as charity researchers, are often asked about, and we get it. Making a donation is a highly personal decision. You wouldn’t want to risk sending your hard-earned money to a duplicitous organization. To those concerned by fraud in the nonprofit sector, we have good news. ...

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Donors

The Narrative vs. the Numbers

Why research matters when choosing nonprofits

As donors, many of us are instantly drawn to stories and images — something to help us grasp the otherwise hard-to-fathom circumstances of those experiencing ill health, poverty, and injustice. But fixating on the narrative alone can result in serious blind spots. In this post, we discuss what stories are good for — and where they fall short.

Research shows that a vivid story about a single beneficiary can cause donors to donate more than if they had been presented with a statistic about, say, a thousand beneficiaries being helped. One thousand is clearly a lot more than one beneficiary. ...

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Categories: Effective Giving