Do Your Own Research

For many of us, we give to a project or organization because we have passion or feel a connection to the work they do. We also want to know we are giving to a reputable, well-run and solvent organization. The big question is: How do you know when a nonprofit is well-run and solvent? At a minimum, you can look at a nonprofit’s public financial record, and at a maximum you can interview the Executive Director and/or Board members.

Here’s what our program staff looks at when evaluating a nonprofit:

The nonprofit on paper. We examine IRS Form 990 filings, financial audits, annual reports, news coverage and the organization’s website. We also will look at grant applications that are in the public domain. Click here if you’d like to look at the due diligence checklist we use when reading an IRS Form 990.

The nonprofit in person. Also known as: the site visit. Program staff spend 60 percent of their time in the field, on site visits, meeting with nonprofits, seeing their work in action, and learning about the health of their programs and their organization leadership. To better understand a nonprofit, we often talk with third parties in a position to have a perspective, such as: other nonprofits that share or refer clients; other funders; community members; stakeholders: and clients. Click here if you want to read our site visit guide.

The nonprofit’s governance. We ask questions about and look closely at the health of the nonprofit’s leadership—the success and effectiveness of the Executive Director, as well as the involvement and commitment of the Board of Directors. Click here if you want to read our top 10 tips for effective nonprofit Boards.