With a background in fundraising and philanthropy, I’ve been on both sides of the fence. I’ve thought about how to convince people to trust me and my organization with their money, and I’ve thought about how to determine whether an organization could be trusted with money I was stewarding.

If you’re finding yourself in a situation where you’ve got cash you’d like to see working for you in a way that will make the world around you a better place, think about these three criteria before you decide:

Return on Investment
It’s true that money donated to a philanthropic cause isn’t an investment in terms of bringing cash flow and/or assets back to you (unless you’re considering a loan situation like Kiva.org), but it can be an investment in making changes that you think need to be made.

When checking out a new organization for a potential donation, consider what they’ve delivered in the past month, year, and decade. Take the time to look at their Guidestar.com profile and at their past 990 forms. Read their annual reports, their websites, and their social media streams. If you can, sit down with their executive director or Board chairman. Speak with other donors to the organization.

Overall, learn how your money will be used, and determine whether you consider their track record to be a good investment.

How Can You Get Involved?
A great way to see how well an organization is doing is to become a part of it in some small or large way. Consider becoming a volunteer or taking a seat on the Board of Directors. If you have particular expertise in Continue reading →