Nonprofits face growing scrutiny from donors
October 03, 2012
In the wake the recent recession, donors are still tightening their purse strings and keeping a close eye on the charitable donations they choose to contribute to. Coupled with that trend is a growing awareness of nonprofits providing misleading accounting information that makes it appear as if a greater portion of donations goes toward certain programs, according to The Hill. When actually, many organizations also use a portion of funds raised to pay staff members and launch further fundraising efforts.
To address these concerns, a number of consumer watch groups have cropped up to identify organizations that are not adhering to best practices regarding contributions. Sites such as CharityWatch, The American Institute of Philanthropy and GuideStar look into various organizations' fundraising methods, payroll histories, tax status and efficiency, the source adds.
There are a number of steps consumers can also take to ensure their dollars are being used wisely within nonprofits, such as requesting annual spending and budget reports and analyzing the mission statements and management of the groups.
They can turn to trusted resources, including the Better Business Bureau, which has a Wise Giving Alliance to look into paid fundraising firms and charitable organizations.
Individuals, programs and organizations that rely on fundraising to fuel sustainable operations might find nonprofit fundraising software
advantageous. The solutions can facilitate the process of identifying grant opportunities, generate reports that demonstrate current financial need and showcase previous achievements.