Donating to charitable organizations as an individual or business is a fulfilling way to support meaningful causes—and it’s easy to get started. Ahead, experts share a step-by-step guide to help you develop a philanthropic plan and establish a routine of regular giving.
Find Your Why & Choose a Cause
Reflecting on your values is your first step. “Think about things that impacted you in the past, things that inspire you currently and hopes for the future,” says Sophia Fifner, CEO of Columbus Metropolitan Club, a not-for-profit corporation, and author of the newsletter The Advocate Next Door.
“The most effective, lasting philanthropy is aligned with a personal or organizational purpose,” adds Dale Pfeifer, CEO of Giving Compass, a platform that educates charity donors. She recommends asking, “What really motivates me? Is it justice, the climate, education?”
Once you’ve identified your values and written a why statement, find a focus area. “If you care about the environment, is it oceans specifically? What is it?” Pfeifer asks.
After you narrow your focus, look for organizations that address that cause.
How to Choose a Charity to Support
“If you’re a business owner connecting your business to philanthropy, pick a nonprofit that aligns with your business mission and values,” Fifner says. For example, an outdoor gear company might donate to environmental organizations.
People usually feel most connected to donating when they’re personally affected by something or know someone affected, so another option is to ask what causes resonate with your employees, says Meghan Clem, co-founder of Intertwined, Inc. and RAD Camp, a nonprofit that sends individuals with disabilities to camp.
Consider supporting local nonprofits too. United Way could be a good place to find grassroots organizations, according to Fifner. “Often, small, underfunded grassroots organizations in local communities have less than $50,000 a year in funding, so just $1,000 can mean so much to them if that’s all you have this year to give,” Pfeifer says. On the other hand, $1,000 might not go as far at a larger organization.
How Much to Donate to Charity
Fifner recommends starting by donating 1% of your income and then giving more when possible. She says to ask yourself, “Will you sleep well at night giving 3% of your funds?”
Ask not only what is realistic to donate but also what your contribution can do, Clem suggests. For example, the cost for one camper at RAD Camp is $4,000, but campers only pay $750 each. “So if you want to send five people to camp, you might calculate your donation using these numbers,” Clem explains. Any sum counts, she adds, but if you can have a bigger impact by increasing your gift slightly, consider that.
Businesses can either donate an annual percentage of revenue or, as Clem recommends, donate a specific percentage after meeting a particular profits goal. “You can also connect the product or service you’re selling back to a charity, so for every unit sold, one dollar or 10% will be donated,” she suggests. This way, donations are built into the business model, and you don’t have to fear overextending yourself in a quarter that doesn’t perform as well.
Finally, as you budget, consider whether you’re making a large, one-time donation or splitting it into recurring pieces, Pfeifer suggests. Recurring donations are especially valuable if you can afford them because they give organizations consistent monthly income. In addition, consider allocating a budget both to long-term problems and urgent needs that pop up for a nonprofit, Pfeifer says.
How to Vet a Charity Before You Donate
It’s also important to take a closer look at the organization you plan to support to make sure it aligns with your own values. To help with this, GuideStar, Candid and Charity Navigator describe the financials, leadership and mission of nonprofits, Fifner says. Giving Compass also provides donors with learning materials and helps them compare grassroots organizations.
If nothing else, check out this IRS website to confirm that a nonprofit is a registered 501(c)(3) charitable organization and find its Form 990 for more financial information. After that, Fifner recommends visiting an organization’s website to gain a deeper understanding of its impact on the community. One red flag is not having local contact information or a clear, diverse board of directors, she adds.
Beyond this, Clem suggests confirming how much of the group’s budget is spent on programming versus overhead. “Anyone spending less than 80% on programming warrants further investigation,” she says. “When a group offers a program, they should publicly share how much was raised, where it’s going and the result of the program.”
Pfeifer recommends confirming that an organization’s payment platform is secure and PCI-compliant as part of the vetting process. If the nonprofit uses Stripe or Braintree or another payment intermediary, she suggests checking its reputation.
Keep Track of Charitable Donations for Taxes
If you donate as a business, Fifner suggests employing an accountant to manage donations. For frequent donors, Pfeifer suggests using a donor-advised fund to consolidate receipts. Platforms like JustGiving or a simple spreadsheet can help you track donations too, Fifner shares.
Clem suggests creating columns for the charity’s name, tax ID number, donation amount, donation date and a hyperlink to your charitable receipt, which could constitute a tax write-off if you’re supporting a 501(c)(3). Get a charitable receipt for the monetary equivalent of time volunteered or products provided to a nonprofit as well, she says, and then send the spreadsheet to your CPA.
“The best way for nonprofits to receive donations is a check or bank transfer so that they get the full donation instead of losing a portion to processing fees,” Clem explains. You can reach out to a nonprofit for the necessary information, so make sure you keep track of this correspondence. In addition, she says that if a charitable receipt isn’t automatically generated when you provide an ACH payment, email the organization. Don’t wait until tax season, and keep all the receipts together.
Part of tracking your donations is also engaging with the nonprofit to see what it accomplishes with your gift, Pfeifer adds. “Learn alongside organizations to consistently refine your thesis about what makes change in the world and how to play your hand in it.”
Featured image courtesy of BlackSalmon/Shutterstock
This article was first published in the November 2025 issue of SUCCESS® digital edition. Get your FREE copy here.
