Blog

How to vet nonprofits

August 13, 2020

Jamie Schloegel, Chief Executive OfficerBy Jamie Schloegel, Chief Executive Officer

Are you interested in giving money to a charity but unsure how to choose a good one?

The process of vetting a nonprofit can really run the full spectrum from easy to complicated, depending on how much information you need to decide.

When news stories pop up about nonprofit execs with enormous paychecks, it causes people to feel less confident their hard-earned money will be spent wisely by a nonprofit. Let me first spend a minute reassuring you; 99.9% of local nonprofit employees are truly working in this field because they believe in its value, and not because it’s a lucrative business.

The simplest way of vetting a nonprofit is by trusting the organization’s reputation. If you feel moved by the mission and are hearing good things about their work, make a gift.

If you are considering a sizable gift, you might want to dig a bit more. Here are some tips:

  • Check out our directory of local nonprofits. All have gone through LCF’s internal vetting process and are approved annually by our board of directors.
  • If tax incentives are a consideration, be sure that the organization is recognized by the IRS as a charitable organization. You can check online here guidestar.org or here www.irs.gov
  • For in-depth financial information, you can review a charity’s Form 990. Many organizations post this on their website, or you can look it up on guidestar.org.
  • Check out nonprofit websites, social media pages, or other communications. Many donors review mission statements, programs, recent accomplishments, the governing board, personnel and finances of a nonprofit before making a large gift.
  • Reach out directly and don’t be shy in asking for more detailed information.

A couple things to be aware of:

  • Crowdfunding campaigns like GoFundMe and KickStarter might be run by individuals or causes that may not be associated with a charitable organization. Be sure to “vet” these campaigns carefully before giving as some are fraudulent. Keep in mind that giving to individuals is not tax-deductible.
  • Be wary of organizations that report having no fundraising or administrative costs. While everyone wants to see program dollars maximized, remember that administrative and fundraising expenses are an indispensable part of running an organization. These ensure efficiency, accountability and compliance with the law. Healthy overhead leads to more stable operations and sustainable funding streams.

Here are more resources you can use to “vet” organizations for your charitable giving:

And of course, myself and the LCF team are always happy to talk about how your giving can make the biggest impact. Give us a call and we can provide names of nonprofits doing good work in your interest areas. In this time of chaos and uncertainty, let’s work together to infuse the community with goodness.

 

Sincerely,

Jamie Schloegel

 

 

 

Jamie Schloegel, CFRE
Executive Director
Email: Jamie@laxcommfoundation.com
Phone: (608)782-3223 ext. 22

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