How do I vet a non-profit?
September 11, 2011 9:54 AM Subscribe
What are the best online resources for determining a non-profit's bona fides?
The non-profit in question is based in the US. I would like to make a sizable donation, but, as with any investment, I want to do due diligence before pulling the trigger. How can I independently verify that the organization spends its receipts wisely/honestly?
The non-profit in question is based in the US. I would like to make a sizable donation, but, as with any investment, I want to do due diligence before pulling the trigger. How can I independently verify that the organization spends its receipts wisely/honestly?
Best answer: You can, in addition to, or via the links above, ask for the latest annual report, review their IRS 990 forms, and ask for their most recent audit. Their annual report should summarize their audited financial positions.
posted by gingerbeer at 10:17 AM on September 11, 2011
posted by gingerbeer at 10:17 AM on September 11, 2011
"Sizable" is subjective, of course, but depending on the size (staff-wise and budget-wise) of the organization, they may have a person or people whose job it is to work with major donors, and if so, they will be happy to walk you through all their stuff. Not that you would then take them at their word, but it will give you more information to base your research on.
posted by rtha at 11:40 AM on September 11, 2011
posted by rtha at 11:40 AM on September 11, 2011
Best answer: If by "sizeable" you mean large enough to make it worth your time to do some research, I would do the following:
1. Check GuideStar
2. Review the 990 (look at ratio of programming expenses to overhead/admin expenses, it should be south of the 20% line for admin).
3. Ask who they collaborate with in terms of programming and grants, are they connected to other reputable organizations.
4. Review copies of Board Minutes, is the Board a functioning board or a rubber stamp for the director/owner.
5. Check that they are registered as they should be with the state they operate in.
6. Ask for references (grant offering entities, other donors, governmental entities that they work with or have grants from).
7. Ask to visit a program (if that is practical) and see the actual day to day operation.
8. Ask to talk to a client/recipient of services if possible.
9. Check with your local United Way and/or Community Foundation. Are they funded, is there a recommendation they would make.
10. Ask to see a list of staff/admin people and credentials of key individuals.
11. Ask for program reports, data, outcome information.
note: I'm the ED of a small NPO ($1,000,000 budget annually), I would be glad to provide this information for anyone donating over a few hundred $$$'s.
posted by tomswift at 12:52 PM on September 11, 2011 [1 favorite]
1. Check GuideStar
2. Review the 990 (look at ratio of programming expenses to overhead/admin expenses, it should be south of the 20% line for admin).
3. Ask who they collaborate with in terms of programming and grants, are they connected to other reputable organizations.
4. Review copies of Board Minutes, is the Board a functioning board or a rubber stamp for the director/owner.
5. Check that they are registered as they should be with the state they operate in.
6. Ask for references (grant offering entities, other donors, governmental entities that they work with or have grants from).
7. Ask to visit a program (if that is practical) and see the actual day to day operation.
8. Ask to talk to a client/recipient of services if possible.
9. Check with your local United Way and/or Community Foundation. Are they funded, is there a recommendation they would make.
10. Ask to see a list of staff/admin people and credentials of key individuals.
11. Ask for program reports, data, outcome information.
note: I'm the ED of a small NPO ($1,000,000 budget annually), I would be glad to provide this information for anyone donating over a few hundred $$$'s.
posted by tomswift at 12:52 PM on September 11, 2011 [1 favorite]
This thread is closed to new comments.
posted by GreyWingnut at 10:04 AM on September 11, 2011