How Donors Should Screen a Charity Before Making a Donation

We will soon be entering the biggest fundraising season of the year as we move into September, which will finally lead us into the holiday months. Despite fundraising reaching all-time highs in 2017, even topping $400 billion, fundraising revenues have declined in the first quarter of this year, which should serve as a red flag for non-profit organizations.

While I expect fundraising revenue to increase for the nonprofit sector, I also believe that donors should only support charities that are demonstrating impact, growth, and sustainability. The reality is that most donors will never take a look at an organization’s publicly available IRS 990 filings to see if they should make a charitable donation. In fact, most donors don’t spend more than a few minutes looking at an organization’s website and seeing if they like it.

Although donors have become more aware of giving strategically, there are still millions of small-level donors who will see a cause, visit the website, love the story and get emotionally hooked, and then make a $10 or $20 donation.

The right time to find out how to donate to a nonprofit, even if it’s just $5, is now if you’re someone who’s likely to consider a charitable contribution this year. If you don’t have time to review an organization in depth, take a few minutes to see how well your favorite charity is doing in the following areas.

  • Leadership: If you read my blog regularly, then you will understand that I am a strong believer in leadership development. The fact that someone has the title of CEO or executive director does not mean that he is a leader. You can get some clues about leadership vision by checking out the website. First, see who is in charge (and perhaps serving on the board) of an organization. Ask yourself if the people involved in the case have relevant credentials. Also, take a look at the website and schedule itself. If the information is presented in a professional and forward-looking manner, you are likely to have leaders who are looking to be the best at the work they are doing in their community.
  • Privacy Policy: This year there has been a global discussion about privacy and data. If you’re thinking of donating to a cause, but on their website in their terms of service or on a separate privacy policy page, you don’t see any information about protecting your information, then you may want to reconsider giving. a donation Donors should know if the organization they are donating to sells or rents their names and information to other organizations (many nonprofits still do this practice). Supporters should also understand how their information is protected, particularly in the digital age when hackers and other nefarious individuals want to digitally steal their information.
  • Innovative Programs: Innovation is the clear sign of leadership. If a nonprofit is innovating and trying out new ideas and approaches to things, even if they have flaws, which are to be expected, I would support it over a group that is clearly doing things the same way. If you see creative efforts and programs from a nonprofit, take it as a sign that you might have a good organization to support. The digital age rewards innovators; it does not reward groups that play it safe. No one is saying that organizations have to be reckless with their resources, but they do have to sensibly try and test new ideas and models to make an impact.
  • Technology: I understand that some groups can’t afford technology, but if you don’t see substantial use of technology tools, including social media, mobile, etc., then this is a clear sign that the nonprofit is operating. in the past. The best groups adapt to change and use available resources to their advantage. In today’s world, that means technology. As a donor, you should be aware that any group that is not using technology is not trying hard enough. There are many available grants and individual donors who understand the need for technology and would be available to support the development of a group’s technology infrastructure; the charity simply hasn’t asked them, and that’s their mistake and says a lot about their thinking. .

With approximately 1.5 million charities in the US and millions more worldwide, if you’re looking to support a great cause as we fast-forward to year-end giving, just considering the above, you’ll be making a more impactful contribution. .

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