Navigating the world of foundation donations can feel overwhelming. Below, we distill the most common questions into a straightforward donor’s cheat sheet.

• Q: How do I know a foundation is trustworthy?
  A: Start with independent verification. Check the foundation against the databases of Charity Navigator, CharityWatch, or the Better Business Bureau’s Wise Giving Alliance. These organizations do the heavy lifting of analyzing financial health and transparency so you don’t have to.

• Q: Can I deduct my donation to a private foundation on my taxes?
  A: Yes, but with caveats. While cash donations to public charities can be deducted up to 60% of your Adjusted Gross Income, gifts to private foundations are often capped at 20% or 30% of AGI. Always confirm the foundation’s specific tax status.

• Q: What’s the difference between a foundation and a regular charity?
  A: Typically, a foundation is a grantmaking entity—it gives money to other charities (or individuals) rather than operating the programs directly. Charities often do both. However, the term is often used interchangeably.

• Q: What’s a red flag I should never ignore?
  A: High-pressure tactics. If a fundraiser insists you must give right now without allowing you time to research, it’s a major warning sign. Also, be wary of any foundation that cannot provide a recent audited financial statement upon request.

• Q: How much of my donation actually reaches the cause?
  A: Look at the “Program Expense Ratio.” Efficient foundations keep overhead below 20%. CharityWatch provides detailed breakdowns of exactly how much it costs a charity to raise $100