  |
 
|
Home  Tips and Info Articles Charity Accountability
Charity Accountability
Giving decisions should weigh heavily on dollars and sense
Charity finances usually take precedence over other issues associated with making a wise giving decision. Many donors will make contributions based solely on the organization's alleged financial needs while paying little heed to the group's activities and accountability. In order to make informed giving decisions, it is advisable to inquire about ethical issues that reach farther than just the numbers. The Better Business Bureau suggests researching a charity organization just as carefully as a company. While it is easy to measure satisfaction or dissatisfaction following a business dealing, there is little or no follow-up from a charitable donation. The time to get the facts about an organization is prior to giving. The following are basic questions you should have answered before you consider a donation.
What does the charity do?
Make sure the organization's appeals clearly identify the charity's programs. For example, a solicitation to assist the homeless should describe how it will be done (e.g. shelter, clothing, food, training, etc.) If the appeal is vague or unclear, ask the organization for a copy of its latest annual report which should include a summary of recent accomplishments. You may also request, and legally they must provide, a copy of the most recent Internal Revenue Service Form 990. This form will outline exactly how much was raised and the amount that went back to their community programs. Also ask for any informational pieces such as brochures.
How are the funds being raised?
While most charities do raise funds honestly and ethically, there are some that are only seeking your dollars with little intent to better the community. Beware of an individual or organization that uses excessive pressure for an on-the-spot donation. Be alert to appeals that are high on emotion and low on detail. The promoter may be simply tugging at your heart strings in a blatant effort to empty your purse strings! Door-to-door solicitations and telemarketing calls give you little opportunity to investigate the organization. Get as much information as you can about the group and take time to investigate before you give. A charity that wants your money today will encourage your research and welcome your donation tomorrow.
Where do the charity's programs take place?
Charity programs can vary widely in terms of the nature of the activities and where they take place. Some contributors prefer to focus their giving on organizations that benefit the local community. Don't assume that just because the call or solicitation was generated locally that your donated dollars will stay in the area. Regardless of whether you are interested in supporting broad based activities (i.e. medical research) or a community effort (i.e. local patient services), feel free to question where the programs or activities will be administered. Sometimes it is difficult to determine if you don't specifically ask.
What is the best way to give?
Make donations by check payable to the organization, not to the individual collecting the donation. Be wary of giving your credit card information to an unknown solicitor. Never give cash, it is near impossible to keep an accurate record of your giving this way.
Who is in charge?
Ultimately, every legitimate charitable organization is governed by a board of directors. The board's governing authority is responsible for oversight. With this in mind, you may want to take time to check out the board roster to identify who is providing the organization's guidance.
|
|
|
 |
| |