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Giving With Certainty

November 28, 2014

We all work too hard for our money and when we choose to give it to a charity, we want our donations to have an impact. The purpose of any charity is to fulfill a mission that provides some public benefit. So, how do we know which charities fulfill their missions?

It is important to learn about a charity’s programs, accomplishments, goals and challenges. Review their website and/or talk with their staff. You want to ask yourself the following questions as to whether the charity clearly explains its mission:
1.  First and foremost, is the charity a tax-exempt organization with a 501 (c) (3) tax-exempt status from the Internal Revenue Service? If not, delete it from your list.
2.  Next, does the charity clearly explain what the problem is it intends to address and how it will do so? Does the charity’s statement of how their work leads to results seem reasonable to you? Do they show any evidence that demonstrates that their approach is effective?
3.  Does the charity actually do those things that it tells you about in its solicitations? Look for signs that the charity dedicates both money and staff time in ways that are consistent with what their stated mission is.
4.  Has the charity’s approach been reviewed or written about by an objective third party?  If they have a report from an organization that focuses its attention on results, it could potentially provide a vote of confidence in the organization.
5.  Does the charity receive feedback from the people it serves – clients, consumers, etc. and use it to improve the quality of services? Look to see if there is any sign that the organization collects and publishes feedback from its primary beneficiaries.
6.  Does the organization have an independent third party formally evaluate their efforts with some regularity (at least every 5 years) and make those results publically available?  Do they explain what they learned from the evaluation and what, if anything, they are changing as a result?
While not all charities will have the economic wherewithal to have independent third party evaluations, or be large enough to be reviewed by an objective third party, the remaining questions above, should be easily answered by them.
And remember to always listen to that inner voice of yours.  If there is something inside you telling you things just don’t seem quite right, it is very possible that everything is not as it seems.