Written by: Sonia Larbi-Aissa
Edited by:  Dani Lau

In the holiday season, many Montrealers are considering donating to charity as an alternative to traditional gift giving or as a continuation of an annual gesture. At End Poverty Now, we are especially cognizant of the effectiveness and impact of our financial donations. We rigorously evaluate the organizational structure and community outreach of each program we partner with in order to optimize both our local and international impact. As more and more charities crop up locally and internationally, the choice to donate to one charity over another becomes all but impossible. The following are some tips we’ve compiled from our experiences in the local community to help you make an informed decision for an impactful holiday giving:

Charities with large overhead cost and high CEO salaries don’t necessarily “waste” your donation.

The ideal is that 100% of your donation goes to the cause you’re supporting. However, the larger the charity, the more complex its operating structure and the more resource-intensive its functioning. Some of the most impactful charities in the city pay their CEOs six figure salaries in order to attract the most qualified talent and spend money on advertising to increase their visibility. As more charities join the market and compete for donations, “branding” becomes a necessity. That being said, if, as a consumer, you deem the organization’s marketing to be supercilious, or if the thought of the head of the organization earning holiday bonuses doesn’t sit right with you, there are a myriad of smaller organizations to donate your money to instead.

Beware of charities with vague mission statements and mandates.

Charitable organizations should be as specific as possible with how they plan to spend your donation. Organizations that nebulously promise to “give back to the community” should be avoided at all costs. Accountability comes with specificity, and if you cannot verify that your money went exactly where it was supposed to go, you might want to reconsider giving. Third party websites with thorough rating methodologies can be consulted to narrow down options.

Reward transparency and steer clear of opacity.

Technically, charities only have to report their finances to the government in order to maintain their special tax status. Charities that make their costs and spending patterns public are going above and beyond their legal requirements to ensure potential donors of their legitimacy. Supporting charities that do so with your donation helps set the trend for all other charities in the market to follow.

94% of Canadians donated to a charitable organization in 2010. Of that 94%, 74% donated in order to make a contribution to the community. This holiday season, ensure that your donation truly contributes to your community by researching your charity of choice, and contacting them with any questions you may have.

End Poverty Now wishes you the happiest of holidays and thanks you for choosing to give in the spirit of the season!