How are charities and donations tracked?

Check the charity reference sites and find out. Even better, for local donations, volunteer to work with the organaziation.

Each of them keeps track themselves. I don’t think there is a central clearing house for information about deliveries or impact.

There is information about how much of some charity’s budget is spent on administrative costs (all the people who get a paycheck from them). Most charities will tell you things like that about themselves.

There are a couple sites like Charity Watch and Charity Navigator and Charity Choices that show charity performance by various criteria but from what I can tell they are far from comprehensive, the little charities are seldom covered on those.

One way is their IRS filings.

In the US, a charity organization has to apply to the IRS for status as a non-profit (or else they will be considered a business and pay taxes).

Then, instead of filing a 1040 like a business, each year they file IRS form Form 990 to report finances.

You can check websites like Charity Navigator or GuideStar to find out if the charity is legitimate. To make sure that your donation ends up at the charity, go to the non-profit’s website and check information as the mission of the charity, the most recent annual report from the charity, and information about the management of the charity, then donate directly to the non-profit online. You can even call the charity and get their address and then support them by mailing the check directly.

You guys are probably know more about these websites since you linked them to me, where exactly do I find their result reports?

Bear in mind that religious charities like the Salvation Army do not have to file reports with the IRS. So no one knows where your money goes.

@LDRSHIP You can go to Charity Navigator and check if your charity is listed there. For example if you donated to American Red Cross then search for that and you will get a detailed report like this. Well-run charitable organizations release their financial information and you can always contact them and ask them how they utilize the funds and how the donations make an impact on their mission.

I am a Director for a prostate cancer support group. It is a 501© 3, Not-for-profit, and we do that very well. :-) We prepare an annual statement of expenses and income and submit that information to the IRS. No one is paid a salary or receives payment in any way. We are directors because we believe in the mission not because we expect money. Every cent donated is spent on the cause. We help guys teetering on the edge of depression or suicide realize that every day is a bonus.