top of page

A PRACTICAL APPROACH FOR EVALUATING YOUR CHARITABLE CONTRIBUTIONS...BEFORE YOU MAKE THEM

  • Amy Lee
  • 5 days ago
  • 2 min read
Rethink how you give quote

Making a charitable contribution should be a thoughtful process but generally it’s not. Often these decisions are made based on what we believe is worthwhile and we rarely do our homework. The JKTG Foundation does things differently, and after 10+ years of making contributions, I know our process works. Let me share how you can maximize your contribution dollars.


Pick a topic area of interest:

What do you care about? Helping the poor, supporting education, a type of cancer, etc.? If you want to have an impact, it might be best to select one area and then continually target your dollars there on an annual or recurring basis.

Determine where people doing this work are employed, then do some homework:

Once you know the organization, use GuideStar to look at an organization’s structure and how they use their money. GuideStar allows you to look at the IRS Form 990, which is the tax return filed by the not-for-profit organization. Some fundraise for money that goes to their discretionary income rather than specific projects. The JKTG Foundation for example, aims to give researchers more control and flexibility, thus we support researchers and fund them, not the organizations that employ them.


How much money does an organization spend on direct costs? How much on indirect cost (overhead or support costs) or executive pay or fundraising?


To get into GuideStar you may need to sign up but it’s worthwhile IF you are committed to benefiting the area in which you are making the contribution. I suggest looking at the most recent Form 990 available (there are usually three years) and find answers to these questions:

  • What is the organization’s total revenue?

  • What is the organization’s total expenses?

  • What is the amount spent on program expenses?

  • What are the expenses spent on fundraising?

  • What are total expenses as a percent of total revenues?

  • What is the amount spent on program expenses (the actual programs) as a percent of total expenses?

  • What are the indirect costs as a percent of total expenses?

  • What are the management salaries as a percent to total expenses? (The top highest paid executive’s compensation is listed)

  • What is the pay of the top executives as a percent of total expenses?

  • What are the fundraising expenses as a percent of total expenses?

  • What are the current year annual contributions as a percent of total revenues?


Let these answers guide your donations. If your contribution is sizable, you can also work to develop a specific project and work with an organization to target that goal. In other words, have a purpose.


Giving is a wonderful thing to do. Do some homework to make sure your gift makes the impact you intend.




bottom of page