If you want to make a difference to South Africa's deep economic inequality, and you’re in the fortunate position of having resources to share, you probably feel a duty to include charitable giving in your budget. Whether it's dropping spare change in a cup at a traffic light or making a monthly debit order to a charity you care about, most people want to help.

But we also face a challenging economy in which many of us don't have much money to spare, so you’ll want to be sure your generosity is making a meaningful difference to people's lives. How do you decide where your donations can do the most good, and how do you ensure that you're giving to a legitimate, effective charity?

How to choose a charity you can trust

Established, reputable charities can pool resources, expertise, and partnerships to deliver help at scale. Effective organisations don't just provide relief – they measure their results, track progress, and adjust their programmes based on that information.

South Africa offers donors solid tools to verify that a charity is legitimate and compliant:

• NPO registration
  All legitimate nonprofit organisations (NPOs) must register on the Department of Social Development's NPO database, so you can easily check whether an organisation is active, compliant, or deregistered.
  
  
• SARS PBO status
  The South African Revenue Service (SARS) recognises charities with Public Benefit Organisation (PBO) status, and PBOs can issue Section 18A certificates that allow donors to claim tax deductions. SARS publishes an official list of approved organisations.
  
  
• Financial and impact transparency
  Ethical charities publish annual reports, audited financials, and clear explanations of how funds are used. South African law requires registered NPOs to submit narrative and financial reports annually. Don’t donate to self-described charities if they can't or won't share this information.

Charities that have a lasting impact usually have a clear theory of change and how to bring it about in their chosen area. They ensure this through measurable outcomes, a long-term approach, and independent governance and audits.

Donor funding vs one-time donations

Most people think of giving as making a once-off donation for a charity to use as it sees fit. Donor funding, in contrast, involves regular donations to a specific charitable project. It involves a more deliberate approach, with regular contributions, outcome monitoring, or even pooled funds that distribute resources over time. Research from Stanford University on donor-advised and structured funding shows that planned giving improves consistency and resilience for charities, allowing them to retain staff, expand programmes, and respond to crises more effectively.

Direct giving

Handing money directly to someone in need can solve an immediate crisis – food for the day, transport, or basic dignity. And nobody should make you feel guilty if you find it impossible to ignore a direct plea for help from someone in need, even if all you can afford to give is food or small change.

However, research shows that direct cash handouts don't address the complex issues related to homelessness or unemployment, including social exclusion, lack of skills, or addiction. Many homelessness organisations in South Africa discourage direct giving. Instead, they recommend that you donate to structured programmes that provide meals, vouchers, counselling, and work readiness, for better long-term outcomes.

Volunteering

Volunteering can have a great charitable impact when your skills align with a charity’s mission – for example, legal advice, mentoring, training, or governance support. However, unskilled or ad hoc volunteering can drain staff time and resources. Money, when given to effective organisations, allows professionals to do their jobs well.

Many charities report that unrestricted financial donations are more valuable than casual volunteering, because they can be allocated where impact is greatest. A good rule of thumb would be to volunteer your skills where they're appropriate, but otherwise donate money.

The right kind of giving

Ethical giving isn't about guilt – it's about solidarity and effectiveness. By supporting verified organisations, prioritising long-term solutions, and asking hard questions about impact, each of us can turn generosity into genuine change in the future.

Nedbank, through our Affinity programme, offers you the opportunity to become involved in a range of sustainable, ethical charity programmes.