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 something the organization deals with internally — finance, real estate, organizational psychology, human resources, etc. — think about donating your time and services if needed.
There’s no better way to see “how the sausage is made” than to be part of the assembly line. Dig in. Get dirty. Learn where the real holes are in the organization. And decide if your money can really make a difference, or if you’re throwing good money after bad.
Gut Instinct
Honestly, from my experience, one of the best ways to figure out whether an organization is worthy of your hard-earned dough is through gut instinct. Quite often, you can take a quick snapshot look at a non-profit and figure out whether or not they have the ability to really go somewhere. The main indicators of this, in my opinion, are:
- Executive Director. Does he or she have the passion and the skill set (networking, organizational management, subject matter knowledge, experience) to move the organization forward?
- Board of Directors. Are they invested? Are they contributing significantly to the fundraising campaign from their own pockets. Are they contributing significantly to the fundraising campaign via their time and energy? Are they “show up once a month” kinds of people, or are they “in the trenches” kinds of people?
- Organizational History. Have they been successful before? Have the people that work for the organization been successful in their previous endeavors? Are the right people “on the bus?”
- Business Plan. Is there a living document business plan that’s followed? Is there an earned revenue component to the business plan? Are they serving a purpose that other organizations aren’t already serving well?
If your gut tells you this isn’t the right place to invest, it probably isn’t.
Would love to hear YOUR thoughts on this topic!