Vetting a Nonprofit – Ask Before You Give

Posted by Fundraising Pro on May 25, 2009

Choose carefully before you write a check to a charity, advises an article in today’s Wall Street Journal. Websites such as CharityNavigator.org and GuideStar.org provide information about charities’ programming and financing that can help in you make an educated decision.

Charity Navigator rates charities and evaluates their financial health, the article explains. It shows how much a nonprofit spends on programming versus administrative expenses. Plus it shows how it compares to charities that do similar work.

GuideStar.org offers information about a charity’s finances and programming, including its mission statement, program description and federal tax form. Donors can search for charities and donate directly from the site.

Becoming a volunteer for a nonprofit organization is a good way to become familiar with programs you’d be supporting as a donor. If you’re able to give a substantial donation, you should talk to the charity’s leadership about its accomplishments. Ask how the group evaluates its programs; ask to see annual reports. How do the leaders measure if they’re making progress toward their goals?

The fundamental question comes down to whether a nonprofit is treading water or making a difference, according to Rich Cowles, executive director of the Charities Review Council, which evaluates nonprofits and advises donors on effective giving.

Be sure to find out whether a nonprofit you are interested in helping sells the Samaritan Card. It offers nonprofits a very high return on selling a practical product that people can use instead of just asking for outright donations.