Non-profit organizations are essential – they help fill the gaps of every day life. And since most non-profits receive only a portion of their dollars from local and national governmental organizations, they rely on private donations to keep their mission alive. So, our support is much needed, but are you sure your hard earned cash is used correctly?
In most cases, yes; but you can never be too careful. Before donating money to a charity, do your homework. Answering the following questions will make you feel better about cutting that check:
What is the non-profit organization’s mission? Find out exactly what the non-profit organization does and how they do it. If you can’t answer this question just by reading its mission statement or visiting their FAQ site, than the non-profit may not have a clear goal. An unclear mission means that your donation may get wasted away while the non-profit organization tries to figure out what they are actually doing to make a difference.
What is the non-profit’s short- and long-term plan? To support its mission, a non-profit usually has a short- and long-term plan accessible by the public. This is basically a business plan of sorts that maps out how it will manage making a difference with dollars. Become familiar with their plan so you know how you fit into the piece of the pie, and follow up to make sure the organization is doing what it said it would do. If you notice that the non-profit has a hard time moving forward despite the funding it collected, you may want to donate to a different cause.
What does its annual report say about them? Every non-profit business is required to release an annual report that the public can access. Spend some time looking at it – how much money was donated? How much was used for the actual mission versus advertising and employment? Some non-profits spend up to 75 cents for every dollar for advertising, payroll, trips, training and other business expenses – that means only 25 cents of each dollar you donate goes toward the mission. If you cannot figure out how much of your money is used to support the mission - then ask. If the non-profit gives you an unclear answer, or you cannot find it on their Web site or pamphlets, you may want to reconsider giving them money.