The word charity holds high regard in the minds of most. It is associated with selflessness, helping those in need, and improving one’s community. While we'd like to think that every charity has good intentions for humanity, there are organizations that qualify as charities that, from your perspective, may not be inherently “good.” So, how does a discerning donor identify troubling “charities?”

The first step is validating what type of organization the charity is. Justification to file for nonprofit status is considerably broad and there are over 25 different codes under the 501 IRS tax classification umbrella. And, each one means something different for both the organization and the person that is supporting that entity.  Under United States tax law, most charities qualify for exemption from taxes and must file an annual Form 990 to remain compliant. Certain entities who are tax-exempt, such as churches or “integrated auxiliaries of churches,” are not required to file a Form 990 to report on their finances and activities in the same manner as other nonprofits.

Read the full article about charities best interest by James Townsend at Charity Navigator.