Written by Walter Grio
Most people want to be more charitable or philanthropic, but sometimes it's hard to know which nonprofit organizations to support. According to the National Center for Charitable Statistics, there are approximately 1.5 million 501(c)(3) public charities in the United States. And that was in 2009.
I've always felt that the Washington, DC area is the nonprofit organization "capital" of the world. Almost every night, there is an event that features a fashion show, a bazaar, a gala, a banquet, an art exhibit, or even an opportunity to have your photos taken wearing a giant panda costume -- all to benefit a nonprofit organization. You can’t even really attend or host a birthday party without it benefiting some sort of nonprofit organization. Don’t get me wrong, I think it’s a wonderful thing, but it does make it tougher to attend or host an event that’s unique enough to capture people’s attention and money. And furthermore, with so many organizations to choose from, it makes it difficult to decide which ones to support.
Here are my 5 tips, in no real particular order:
1. Email the Executive Director. Have a discussion with them. Ask them why they work there. Ask them about their organization. If you don’t get a response from them directly, somebody should be responding to you. Otherwise, who’s running the ship?
2. Ask for financial statements. Find out where they get their funding. Find out how they did this year compared to previous years. Any legitimate organization will have this available. And if they won't disclose this information, walk away.
3. Request for a meeting or a tour. Find out if what they’re doing is really what they’re doing. The more you know, the better you’ll feel that your money is being used for something important.
4. Ask them how your money will be used. Granted, this might depend on how much you’re donating, but if you are donating a large sum, it’s fairly reasonable to actually tell them how you want the money used. All organizations have projects that need funding. Find out about their projects. Maybe they have a sponsorship program or a scholarship program. Maybe they plan to give the money to another organization (which in that case, just give it directly to that organization).
5. Go to some of their events. Talk to people, talk to the staff. If they’re passionate about what they do, it will show.
Lastly, it's wonderful and inspiring to be philanthropic, but the last thing you want to happen is realize that your hard earned money is not really providing any change.