Where Does Your Donation Actually Go? How to Give with Confidence

“Of the $45.5 million raised, the charity spent less than 1% on the stated mission.”
— FTC on the Kars/UBCF vehicle donation scandal

Related Page: PROTECTING YOURSELF FROM COMMON SCAMS IN 2025

Ouch. That’s a headline you don’t want attached to your good intentions. Yet it happens. Every year, well-meaning donors hand over money, believing they’re funding lifesaving services, only to discover most of it vanishes into overhead, fundraising costs, or worse—into scams.

I’ve worked with nonprofits, community institutions, and local leaders. I’ve seen donors get discouraged by ambiguity. But I’ve also seen giving done right—transparent, effective, accountable. That’s what we’ll explore today: how you can donate in a way that’s confident, informed, and aligned with your values.

You don’t need to be a nonprofit expert. You just need the right questions. And I promise: this won’t be dry or dull. Let’s dig in.

Why This Matters

When you donate, you want your money to do good. But without clarity, even reputable nonprofits can fall short.

• A recent case: Kars-R-Us claimed it was raising vehicle donations to support breast cancer screenings via United Breast Cancer Foundation (UBCF). But of $45.5 million raised between 2017 and 2022, less than 1 % actually went to screenings.
• Scammers often mimic real causes or piggyback on national disasters or viral campaigns.
• Even genuine nonprofits vary widely in how efficiently they convert revenue into outcomes.

For a community bank, promoting responsible giving is part of being a trusted pillar in your locale. When your customers feel confident in their charities, they’ll appreciate the guidance, resources, and credibility you bring.

The Mindset Shift: From Charity as Emotion to Charity as Stewardship

Let’s reframe giving. It’s not just about warm fuzzy feelings (though those are nice). It’s about stewardship: using your resources thoughtfully so real, measurable impact occurs.

As a donor, you hold both opportunity and responsibility. Ask:

• What difference will my dollar make?
• How do I know it’s going where I expect?
• Will it help sustainably or just temporarily?

With those questions in mind, let’s walk through a practical framework: vet — evaluate — monitor. I’ll also share tools and red flags you can deploy immediately.

Vet: Before You Give

Before money ever leaves your wallet, you should do a bit of homework.
(I promise: it’s not painful. And it saves regret later.)

1. Search smart

Start with a simple engine search:

• “[Charity Name] + reviews”
• “[Charity Name] + complaints”
• “[Charity Name] + scam” or “fraud”

But don’t stop there. Use trusted platforms:

• Charity Navigator — rates nonprofits by financial health, accountability, transparency.
• GuideStar / Candid — access to IRS Form 990s, mission statements.
• Better Business Bureau’s Wise Giving Alliance
• CharityWatch

These tools often let you dig into how much is spent on programs vs. overhead or fundraising.

2. Inspect the charity’s own disclosures

Any reputable nonprofit should readily provide:

• Their mission and program descriptions
• Annual reports / audited financial statements
• IRS Form 990 or equivalent
• Breakdown of expense categories

If they hide those or slow-walk your request, that’s a warning.

3. Understand their cost structure

Some expense is inevitable—staff, rent, utilities. But prudent organizations aim for program efficiency (a high share of donation dollars going directly to mission).

As a rule of thumb (though not a strict rule):

• Above 75 % program spending is a strong sign
• Between 50–75 % is acceptable if justified (e.g., in startup or growth phase)
• Below 50 % you should ask why

Be careful, though: some causes (like research, advocacy, education) have inherently higher overhead.

4. Beware of red flags

Here are some immediate red flags:

• Pushy solicitors—calling with pressure, refusing written materials
• Requests to pay by wire, gift card, cryptocurrency, or payment apps
• Refusal to share information
• Overly broad names (e.g., “Global Charity Foundation” with no location or mission)
• Newly formed entities with no track record

If something smells fishy—walk away.

Evaluate: Matching Your Goals to Their Work

Once you have some basic trust, dive deeper. This is where your values meet their operations.

1. Be mission-specific

Define what outcome you care about. Examples:

• Early childhood literacy
• Clean water infrastructure
• Mental health counseling
• Homelessness prevention

Then see if the charity has concrete programs tied to that mission.

A cause like “education” is too broad. A charity that runs after-school reading programs in your region is more tangible.

2. Look for outcomes and impact metrics

Good nonprofits don’t just report “we helped 1,000 people.” They tell you:

• By how much they improved outcomes
• Over what time frame
• What measurement or evaluation methods they used

For instance: “We increased high school graduation rates from 60 % to 75 % in five years in this district.” Or “We reduced hospital readmissions among participants by 20 %.” These are harder to produce—but more credible.

3. Scaling potential and sustainability

A charity might do fantastic work on a small scale—great. But can it grow? Is the funding model stable? Does it rely on a single major donor or one-time grants?

Ask:

• What happens if that grant dries up?
• Do they have a plan B?
• Are they training local partners or building capacity?
  
  

4. Collaborative and local engagement

Especially for community efforts, the most effective nonprofits partner with local institutions. They don’t parachute in. They work with schools, civic groups, or municipalities.

Ask whether they:

• Engage volunteers or local stakeholders
• Adapt to local needs (not a one-size-fits-all model)
• Seek feedback from those they serve

Monitor: After You Give

Giving doesn’t end with a click or check. Real donors stay informed. Here’s how:

1. Ask for periodic updates

Many nonprofits send annual reports. But don’t hesitate to request mid-year updates or impact summaries.

Good questions to ask:

• How was my gift used?
• What were the outcomes you achieved?
• Did you encounter challenges or changes?

Most organizations expect to talk with donors—if they don’t respond, that’s a red flag.

2. Look at future budgets & plans

Check their next fiscal year budget. See where they intend to allocate funds, whether reserved funds exist, and which programs they expect to expand or cut.

3. Use watchdog revisits

Periodically revisit their ratings (on Charity Navigator, GuideStar). See if anything changed significantly—good or bad.

4. Stay involved (if possible)

If geography permits, volunteer. Attend events. Visit programs. Seeing work on the ground offers clarity no annual report can match.

Examples of Good Practice

Here are a few (hypothetical or real) examples you might cite to your audience:

• A local food bank publishes not just pounds distributed but changes in local food insecurity metrics over years, segmenting by neighborhood.
• A mental health nonprofit tracks and publishes its success rates in reducing patient relapse rates, with control groups.
• A literacy nonprofit partners with county schools, uses parent feedback, and reinvests surpluses into expanding into underserved areas.

Whenever possible, use local or regional examples (in your community or state) so readers see what’s viable near them.

Putting It All Together:
A Checklist for Donors

Here’s a cheat sheet your readers can use before giving:

Final Thoughts

Donating isn’t a one-off gesture—it’s a relationship. And like any relationship, clarity, communication, and mutual accountability make it stronger.

By vetting, evaluating, and monitoring, you can make your giving more purposeful. And by helping your customers do the same, your bank becomes more than a financial institution—you become a trusted civic partner.

Let me leave you with this: Your dollars choose a direction. Don’t let them wander. Give with intention. Demand clarity. Expect impact.