Helmut Anheier, adjunct professor of social welfare and public policy, provided insights for a WalletHub feature on charitable giving for 2023. One of the biggest mistakes people make when donating to charity is “not having enough knowledge about the charity, its governance and track record, and assuming that having very low overheads is a good sign in terms of impact,” said Anheier, whose research interests include nonprofits and philanthropy. On red flags to watch out for before donating, Anheier highlighted three: websites that are not transparent, blatant overpromising on results and not having diverse boards. The article cites data showing that while giving in the U.S. increased by 4% from 2020 to 2021, current donation increases are competing with higher inflation. “People donate less during crises, foundations have less to spend, and public budgets are tight,” Anheier said. “Hopefully, charities were able to build up financial reserves to serve as a buffer during hard times.”