How to Choose a Charity: What to Look for Before Donating

Giving to a cause feels good. But how to choose a charity that truly deserves your time and money? That’s where most people get stuck.

There are thousands of nonprofits out there. Some do life-changing work. Others… not so much. It’s easy to be moved by emotional stories or glossy websites. But smart giving takes more than that.

Here’s a plain guide to help you support the right causes—with clear signs, smart questions, and local tips that will ensure your donation actually makes a difference.

Why Picking the Right Charity Matters

Every dollar you donate has value. However, not all charities use that dollar the same way.

Some nonprofits have a solid plan, good leadership, and real results. Others might lack oversight, spend too much on admin, or never show where the money goes.

Giving without checking first might mean your support doesn’t go as far as possible. Taking a moment to choose carefully helps you:

• Support real impact
• Avoid scams or bad actors
• Feel confident in your choice

If you live in Prescott or anywhere in Yavapai County, giving locally can multiply that impact—right here in our own communities.

1. Make Sure the Nonprofit Is Officially Registered

Always check if the group is a verified 501(c)(3) organization. That means it’s approved by the IRS to receive tax-deductible donations.

It’s quick to check. Use these tools:

• IRS Tax-Exempt Search
• GuideStar

If you can’t find them there, it’s a red flag.

At United Way of Yavapai County, our tax status is public, and our records are easy to find. Donors should never have to guess.

2. Look at How They Handle Money

Transparency is key. A trustworthy nonprofit will show:

• How they spend funds
• What portion goes to programs vs. overhead
• Their IRS Form 990 (basically a public tax form for nonprofits)

A site like Charity Navigator lets you compare groups by financial health.

You don’t need to be an accountant to spot the basics. Look for clear annual reports. Ensure a good portion (often 70–85%) goes directly to programs.

At United Way of Yavapai County, about 83 cents of every dollar goes to programs supporting education, health, and financial stability in our community.

3. Focus on the Impact You Can Measure

Does the charity track progress? Do they show results?

Good nonprofits don’t just talk about hope—they measure it. Look for:

• Statistics on outcomes
• Community impact reports
• Real stories backed by facts

Example: If a group supports youth education, do they show improved graduation rates, attendance gains, or parent engagement?

We work with local schools and partners to track success in reading scores, food security, and household financial resilience. Results matter more than promises.

4. Match Their Mission With Your Values

Not every charity fits every donor. That’s okay.

What matters to you? Kids? Health? Homelessness? Veterans? Animals?

Make sure the group you support shares that goal—and shows how they pursue it.

United Way of Yavapai County focuses on the building blocks of a strong life: education, health, and financial stability. These issues affect almost every family in our community, directly or indirectly.

5. Learn Who’s in Charge

A strong nonprofit has a clear structure, a board that provides oversight, and experienced and open leaders.

Check their website. Are board members listed? Do they share staff bios or executive compensation in their annual report?

If it’s all hidden, ask why.

Nonprofits should be proud of who they are and the people who lead them. Our board at

United Way of Yavapai County includes local professionals and community advocates who help us stay accountable and mission-driven.

6. Read Reviews and Listen to the Community

Numbers are important—but so is reputation.

What do past donors say? Volunteers? People served by the programs?

You can also ask neighbors or friends who volunteer locally.

Word spreads fast in a small community like ours. If a charity is doing great work, people usually know.

7. Know How They Spend Your Donation

Every charity will have some overhead—and that’s fine. But it shouldn’t be the main expense.
If only 50% goes to programs, that’s not good enough. Look for transparency. Ask for a breakdown.

We’re proud that most of our funding at United Way goes directly to helping families in Yavapai County. From emergency food relief to early childhood education, we show where your dollars go.

Why Donors Need to Be SMART

With Federal, State, and Local dollars being frozen, removed, or held in question; as well as corporate grant makers granting less dollars to fewer charities, the stable and sustainable funding from UWYC is critical- and the need is growing- we need YOU. We need your company, we need your employees to join us and help fill gaps in service, help bring services to scale, and help our most vulnerable neighbors. As other funding goes up and down with the wind, UWYC funding has 1000 points of light- donors who give a small amount through payroll deduction, which allows us to remain stable in rough times, but we need 1000 more points of light to help meet our LOCAL needs.

Bonus: Support Local Impact

National charities are important, but giving locally means your gift helps neighbors, families, and children in your own ZIP code.

Local nonprofits often do more with less. They know the community and are more likely to be flexible and collaborative.

And you can see the results. That’s a huge benefit.

Red Flags to Watch For

Some warning signs:

• Vague or emotional appeals without data
• No financial reports or tax info
• Pressure to give fast
• Difficult to contact
• No listed board or leadership

If something feels off, it probably is. Trust your gut, and don’t be afraid to ask questions.

Your Quick Giving Checklist

Before donating, check for:

• 501(c)(3) verification
• Financial transparency
• Clear mission and goals
• Proven impact
• Public leadership
• Good community reputation
• Easy access to reports and contact info

If a group can’t check most of those boxes, keep looking.

Want to Give Where It Counts?

Yavapai County is full of caring people. From students to seniors, local businesses to city leaders, we all want to build a healthier, safer, and stronger place to live.

Start close to home if you’re ready to support that kind of work.

At United Way of Yavapai County, we fund local programs that boost early literacy, support struggling families, and improve health outcomes. We’re always looking for volunteers, donors, and community partners to expand our impact.

Your time and support stay right here—and go where they’re needed most.

Let’s build something real. Together.