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How donors should evaluate a charity before making a donation

We will soon enter the biggest fundraising season of the year as we move into September, which will finally lead us into the holiday months. Despite fundraising reaching the highest levels in 2017, even exceeding $ 400 billion, fundraising revenue has declined in the first quarter of this year, which should serve as a red flag for non-profit organizations.

While I expect fundraising income 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 IRS 990 filings, which are publicly available, to see if they should make a charitable donation. In fact, most donors spend no more than a few minutes looking at an organization’s website and seeing if it’s okay with them.

Although donors have become more conscious 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 donation of $ 10 or $ 20.

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

  • Leadership: If you read my blog regularly, then you will understand that I strongly believe in leadership development. Just because someone has the title of CEO or chief executive officer does not mean they are a leader. You can get some clues to the leadership vision by reviewing 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-thinking manner, you likely have leaders who are looking to be the best at the work they are doing in their community.
  • Donor Privacy Policy: This year there has been a global discussion on 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 them. a donation Donors should know if the organization they are donating to sells or rents their names and information to other organizations (many non-profit organizations still do this practice). Supporters also need to understand how their information is protected, particularly in the digital age when hackers and other nefarious people want to digitally steal your information.
  • Innovative programs: Innovation is the clear sign of leadership. If a nonprofit organization is innovating and testing new ideas and approaches to things, even if they have flaws, which are expected, it would support it above a group that is clearly doing things the same way. If you see creative efforts and programs from a nonprofit organization, 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 says 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 cannot afford the technology, but if you do not see substantial use of the technology tools, including social media, mobile devices, etc., then this is a clear sign that the non-profit organization 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 not using technology is not trying hard enough. There are many grants available 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 just didn’t ask them, and that’s their mistake and it says a lot about their thinking.

With approximately 1.5 million charities in the US and millions more around the world, if you’re looking to support a great cause as we rapidly move toward end-of-the-year giving, just considering the aforementioned, you’ll be making a more impactful contribution. .

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