Giving Freely --And Wisely

You'll find other sources. GuideStar.org gives no ratings, just access to 990s for nearly 700,000 charities. Pennsylvania's Department of State lists nonprofits that ran into trouble there. They may be fund-raising in other states.

Still, most people donate simply because someone asks them to, says William Meehan, chair of Philanthropic Research, parent of GuideStar. Charity ratings haven't had much impact, because they're flawed and not enough people follow them. Besides, the ratings don't help you choose among similar charities. For that, you need to know how well they do their jobs. That's the next step--and a new Web site should help it along. Watch for GreatNonprofits.org, launching next spring. People familiar with specific charities--clients, donors, staff and volunteers--will be able to post opinions there, for you to read before you decide to give.

In a skeptical age, charities need to prove they're using money well. I'd bet that the more they tell, the more they'll find people eager to help.

Reporter Associate: Temma Ehrenfeld

© 2006