Tips for Evaluating Charities & Nonprofits.

PositionGIVING BACK

With more than 1,500,000 nonprofit organizations in the U.S., how do you determine which ones to support, especially around the holidays, a traditional time for giving? Foundation Source, Fairfield, Conn., a provider of comprehensive support services to private foundations, has put forth eight questions that should be considered before donating to a nonprofit:

Does the organization have a clear mission statement? Look for specificity. Vague and ambiguous intent ("dedicated to making the world a better place") often leads to vague, ineffectual action.

Are the nonprofit's values congruent with your own? Let's say you are considering a donation to a nonprofit dedicated to reducing urban violence. A closer look reveals that the nonprofit supports tougher gun control laws. Depending on whether you agree with this stance, the nonprofit may not be the right fit

Does the organization meet a vital need? To make sure that your funds go to where they are most needed, look for clear evidence regarding the demand for the organization's services. Do its projects fill an important gap, address a critical need, or solve a pressing problem?

How sound is the nonprofit's stated approach? Do its activities and programs seem likely to advance its mission? Is its "theory of change" based on credible evidence?

Is it the only nonprofit addressing a particular need? Are the organization's services and programs unique, or are others doing similar work? If there are multiple organizations working in the same sphere, what makes...

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