When you open your wallet or clear out your closet to donate, you want to believe your generosity is making a real difference. But have you ever wondered where your donation actually goes? The truth behind donating to charity might shock you — and it is something every donor deserves to know.

Are All Charities Created Equal?

Not all charities operate the same way. Some organizations put the majority of donations directly toward their mission. Others spend a surprising amount on salaries, overhead, and fundraising efforts.

For example, many people ask how much of Wounded Warrior Project donations actually help veterans. Reports show that while a portion does reach programs for injured service members, a significant amount also covers administrative and marketing expenses. It is important to do your homework before deciding where your money goes.

Best Charities to Donate Clothes To

When it comes to donating clothes, some organizations stand out for their commitment to making a real impact. Groups like Goodwill, local homeless shelters, and verified veterans organizations often use clothing donations to directly benefit communities in need.

If you want your old jackets, jeans, and shoes to truly help someone, check that the charity resells items responsibly or gives them directly to individuals rather than marking up prices or tossing unsold items away.

Charities to Avoid Donating To

Sadly, not every charity is trustworthy. Some organizations have been found guilty of misuse of funds or even fraud. Headlines about charities committing fraud and scandals involving well-known names remind us that reputation matters.

Always research the organization's financial statements. Websites like Charity Navigator, GuideStar, and the Better Business Bureau's Wise Giving Alliance can show you whether an organization uses donations ethically or wastes resources.

What Percentage of Donations Go to the Cause?

This is the big question every donor should ask. The best charities typically spend 75 percent or more of their budgets directly on programs. Anything lower than 65 percent should raise a red flag.

Before donating, look at the charity’s financial disclosure or third-party reviews. A trustworthy organization will always be transparent about how much of your contribution actually supports the cause.