CLOSE TO YOUR HEART
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PROFILES
IN GIVING
Emmett Carson
 "People
give "because they are passionate. 'What do
you care about? What's made a difference in your
life?'." Read
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Your giving will have more meaning for you, and your commitment
to giving will be easier to sustain if you give to the causes
that matter most to you. Perhaps a medical research group working
on a cure for a disease that affects someone in your family.
Or it might be the arts organization you enjoy. Or you may want
to concentrate your giving on groups that help children. Let
your values lead your planning.
CLOSE TO YOUR HOME
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GOT
A MILLION DOLLARS?
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If
you had a million dollars, where would you donate
it to make the greatest impact? Take
our interactive poll, and then compare your
results with other poll-takers and the nation
as a whole.
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Your giving will have the most visible impact if you give close
to home. There you are more likely to see firsthand the benefits
of your gift, as well as the need for it. There, too, you are
better able to investigate an organization or volunteer for
the organization to gain an insider's perspective on it. Still,
there are times when what is "close to your heart"
is not "close to your home" but far away - sometimes
a continent away. When you face this situation, it is most helpful
to remind yourself why you are giving in the first place.
TO THE GREATEST NEED
The old saying "Charity begins at home"
need not be a negative commentary on giving outside our own
small orbits. Instead, consider it a reminder that in our
efforts to be generous we should not overlook the needs of
our own families and communities. Once those needs close at
hand are tended to - by us, or perhaps by others - there will
almost always be greater needs elsewhere.
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10
WARNING SIGNS
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In
her book Don't Just Give It Away: How to Make
the Most of your Charitable Giving, Renata
J. Rafferty notes these 10 warning signs that
should make a person think twice about contributing
to a nonprofit organization where the following
situations occur:
1.
You are discouraged or barred from a site visit
or board meeting.
2. Financial records are unavailable, unintelligible,
or generally in disarray.
3. There is no written strategic or business plan
for the organization.
4. The executive director discourages you from
speaking with a board member or a board member
discourages you from speaking with an administrator.
5. Fewer than 70% of the board members have made
a financial contribution to the organization within
the last twelve months.
6. More money is spent on administration and fundraising
than on programs and services.
7. The charity is involved in a legal action.
8. The organization cannot or will not provide
you with the names and contact information for
other or past financial supporters.
9. Organization leaders cannot or will not reveal
specific salary or other expenditure information.
10. Your gut tells you that something is "off."
Excerpted
with the permission of Chandler House Press from
Don't Just Give It Away: How to Make the Most
of your Charitable Giving, by Renata Rafferty.
Copyright ©1999 by Renata Rafferty.
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HOW TO EVALUATE YOUR CHOICE
All nonprofits are not equal when it comes to fulfilling
their mission or using funds efficiently. So before you give
money to an organization, be sure to investigate it. Here are
some ways you can evaluate a nonprofit:
Financial reports: Any
worthy nonprofit organization will be willing to share its
990 tax form with you. With it you should be able to tell
what percentage of the organization's annual funds directly
support its mission and what percentage goes to administration.
By some standards, at least 60 percent of an organization's
revenues should go to mission-related activities and no more
than 40 percent should go to administration expenses, such
as staff and rent. Some evaluation standards recommend a higher
80:20 ratio.
Program results: Ask
to see reports that measure the results of the organization's
work during the past year - how many children did it help
and in which ways, for example. You also might inquire about
what, if any, research was done to determine the need for
a program in the first place.
Site visits: Foundations
often will make a site visit to a charity or nonprofit before
deciding to give it money. You might do the same thing. When
you visit, you might assess the ability of the staff to execute
the mission of the organization, and you might determine whether
the facilities are appropriate to the mission.
Ask around: An organization
earns a reputation in its community, so ask others what they
think about a nonprofit you considering supporting. Do you
know any of the people on the group's donor list? You can
ask them - or even those you don't know.
Additional resources
· "10
Tips on Giving Wisely" from the Independent Sector
· "Questions
to Ask a Non-Profit Organization Before Investing in It"
from Newtithing.org
· "Standards
in Philanthropy" from the National Charities Information
Bureau
· For an in-depth discussion
about evaluating nonprofits, see "Look Before you Leap:
Performing Due Diligence" in Renata J. Rafferty's Don't
Just Give It Away: How to Make the Most of your Charitable
Giving (Chandler House
Press)
Following Up
Even after making your choice, it's wise to follow the group's
progress after you make a donation. By insisting that organizations
be accountable for the way they use your donations, you are
doing more than reassuring yourself; you are reinforcing the
integrity of charities and other nonprofit organizations.
Next: Step 5 - When Should
You Give?
Guide
Home | Step 1 | Step
2 | Step 3 | Step 4 | Step
5 | Questions to Ask
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