Crandi

How To Vet Nonprofits Before You Give Propublica

Leo Migdal
-
how to vet nonprofits before you give propublica

Creative Commons License (CC BY-NC-ND 3.0) Thank you for your interest in republishing this story. You are free to republish it so long as you do the following: Charity solicitations are as much a part of the holiday season as decorations. If you give, it’s a good idea to know what the nonprofit organization does with your money. Here’s one way: use ProPublica’s Nonprofit Explorer, a tool for researching the financial details of nonprofits.

Use our database to search over 1.8 million tax returns from tax-exempt organizations and see financial details such as their executive compensation and revenue and expenses. Explore the app. Organizations that receive a tax exemption from the Internal Revenue Service and take in at least $50,000 a year have to file an annual report, called a Form 990, which can serve as a... Nonprofit Explorer summarizes the financial data in 990 forms and also provides links to the documents. While not a complete picture of an organization’s activities, the form does provide insight on how a nonprofit operates. Here are a few things to look for when deciding whether to make that contribution:

Charity solicitations are as much a part of the holiday season as decorations. If you give, it’s a good idea to know what the nonprofit organization does with your money. Here’s one way: use ProPublica’s Nonprofit Explorer, a tool for researching the financial details of nonprofits. Organizations that receive a tax exemption from the Internal Revenue Service and take in at least $50,000 a year have to file an annual report, called a Form 990, which can serve as a... Nonprofit Explorer summarizes the financial data in 990 forms and also provides links to the documents. While not a complete picture of an organization’s activities, the form does provide insight on how a nonprofit operates.

Here are a few things to look for when deciding whether to make that contribution: Charities often tell donors that a certain amount of every dollar goes directly to “programs,” which usually mean direct services provided to the recipients of their assistance (the homeless, for example, or children). But read the fine print, says CharityWatch: sometimes these statements say “of every dollar spent” and sometimes they say “of every dollar donated.” Those are two different numbers, as ProPublica’s reporting on the Red... The Form 990 not only lists the totals for money coming in and going out, but in Part III (often the second page of the completed form, as with the 2013 form for the... If you’re unsure about exactly what a charity does, Part III can help clear up that uncertainty, but it is also the place where charities promote their accomplishments. Charities rely on volunteers to ask for donations, but many also pay for-profit companies to help them raise money via telephone and mail solicitations.

In its investigation of “America’s Worst Charities,” the Tampa Bay Times and the Center for Investigative Reporting identified nonprofits that raise millions via professional fundraisers and “regularly give their solicitors at least two-thirds of... The more that charities spend on fundraisers, the less money they have for direct program spending – the reason the organizations exist. On a 990 form, look for this amount on line 16a of the first page, labeled “Professional fundraising fees.” Unfortunately, not every nonprofit is properly managed, and your dollars may not do as much good as you think. That's why it's essential to research any charity you want to donate to or volunteer with to ensure it's a credible, responsibly-run entity. If you're attempting to vet an organization, follow these tips from the experts at Forbes Nonprofit Council.

Members of Forbes Nonprofit Council discuss vetting. Start by analyzing the history of the organization and their funding sources. Find out how long have they been around and who supports them. If there is broad support from well-known donors over time, you can bet there is a reputation for delivering good programming. Research news stories. Donors are intelligent; they will weed out those organizations that are not helping society over time.

- Kevin Gay, Operation New Hope Donors and volunteers are making an investment when gifting their time and money. It's important to do your research. Visit their website, read published articles, view what others are saying about the work that is being accomplished and the impact achieved. Donors are investing in a better future and therefore should do their due diligence to investigate the mission, action and outcomes. - Sherry McAllister, Foundation for Chiropractic Progress

Making a charitable donation is one of the most rewarding ways to support causes you care about. But in today’s digital world, not all nonprofit organizations are created equal. With hundreds of charities vying for attention, especially during the holiday season or Giving Tuesday, it’s crucial to know how to separate reputable charities from those that may misuse your money. At Addition Financial, we believe in giving with purpose. That means understanding where your donation is going, how it’s being used, and whether it aligns with your values and financial goals. Here’s how to vet a nonprofit before you give.

Before you click "Donate," take a moment to ask: Is this organization legitimate? Giving to a charity that hasn’t been properly vetted can result in: Doing your homework protects both your money and the impact of your generosity. Giving to charity is one of the most rewarding ways to make an impact—but how do you know if your donation will truly help? With more than 1.8 million registered 501(c)(3) nonprofits in the U.S., the challenge is distinguishing credible organizations from those that may not use your funds effectively. Proper due diligence on your charitable beneficiaries is necessary to ensure that your generosity achieves its intended purpose.

This guide will walk you through the most important steps for vetting nonprofits before donating, including reviewing mission clarity, financial transparency, program effectiveness, and leadership. We’ll also highlight red flags to watch for and trusted resources like OCCF’s Nonprofit Central, GuideStar, Charity Navigator, and the IRS nonprofit database. Look for a Clear Mission and Strong Leadership At the heart of every credible nonprofit is a well-defined mission statement. A strong mission should clearly communicate: Vague statements such as “helping people live better lives” may sound nice, but they don’t give you enough information to assess whether the group aligns with your values.

Instead, look for specificity: “providing after-school STEM programs for underserved youth in Orange County” tells you exactly what they do. Donating to a nonprofit can be one of the most meaningful ways to support causes you care about—whether it's environmental protection, child education, animal welfare, or humanitarian relief. But with thousands of organizations out there, not all nonprofits are created equal. Scams, poor financial management, and vague impact claims can waste your good intentions. That’s why vetting a nonprofit before donating is essential. Here’s how to ensure your contribution truly makes a difference.

Start by visiting the nonprofit’s official website. Look for a well-defined mission statement, clarity about their programs, and evidence of outcomes. An authentic nonprofit typically includes: Tip: Use Charity Navigator or GuideStar (by Candid) to verify transparency. These platforms rate nonprofits on their financial disclosures and public accountability. Donors often ask: How much of my donation actually goes to the cause?

It is frustrating to donate to a charity, only to find out that the charity isn’t using your gift in a respectful manner. Many charities waste money on overhead and executive salaries, leaving less money to go towards their missions. It’s difficult to get your money back from a charity once you’ve donated. So make sure to do due diligence before you give. Here are some tips for discerning donors. Remember: There are lots of good charities out there in almost any issue area.

If you aren’t sure about one, there should be plenty of other good options. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox. Here’s what we’ll go through in this guide: In general, nonprofit organizations exist to further a social cause or provide a public benefit. While many do, some don’t live up to the values and mission they claim.

How nonprofits spend their money may be different than what you expect. For instance, ProPublica has reported on how the Red Cross built just six homes after raising millions for Haiti disaster relief, how St. Jude Children’s Research Hospital keeps billions of dollars in reserves and how a nonprofit college spent more on marketing than financial aid. Donating to a cause is one of the most meaningful ways to make a difference. But how do you know if the nonprofit you're supporting is actually trustworthy? Whether you're giving cash or in-kind donations, it’s essential to research thoroughly before donating.

This guide will help you make informed choices, avoid scams, and maximize your impact. Start by confirming that the organization is officially recognized as a tax-exempt nonprofit under U.S. law. This ensures your donation is tax-deductible and the organization complies with regulatory requirements. Charity evaluation websites offer detailed reviews on financial responsibility, governance, and transparency.

People Also Search

Creative Commons License (CC BY-NC-ND 3.0) Thank You For Your

Creative Commons License (CC BY-NC-ND 3.0) Thank you for your interest in republishing this story. You are free to republish it so long as you do the following: Charity solicitations are as much a part of the holiday season as decorations. If you give, it’s a good idea to know what the nonprofit organization does with your money. Here’s one way: use ProPublica’s Nonprofit Explorer, a tool for rese...

Use Our Database To Search Over 1.8 Million Tax Returns

Use our database to search over 1.8 million tax returns from tax-exempt organizations and see financial details such as their executive compensation and revenue and expenses. Explore the app. Organizations that receive a tax exemption from the Internal Revenue Service and take in at least $50,000 a year have to file an annual report, called a Form 990, which can serve as a... Nonprofit Explorer su...

Charity Solicitations Are As Much A Part Of The Holiday

Charity solicitations are as much a part of the holiday season as decorations. If you give, it’s a good idea to know what the nonprofit organization does with your money. Here’s one way: use ProPublica’s Nonprofit Explorer, a tool for researching the financial details of nonprofits. Organizations that receive a tax exemption from the Internal Revenue Service and take in at least $50,000 a year hav...

Here Are A Few Things To Look For When Deciding

Here are a few things to look for when deciding whether to make that contribution: Charities often tell donors that a certain amount of every dollar goes directly to “programs,” which usually mean direct services provided to the recipients of their assistance (the homeless, for example, or children). But read the fine print, says CharityWatch: sometimes these statements say “of every dollar spent”...

In Its Investigation Of “America’s Worst Charities,” The Tampa Bay

In its investigation of “America’s Worst Charities,” the Tampa Bay Times and the Center for Investigative Reporting identified nonprofits that raise millions via professional fundraisers and “regularly give their solicitors at least two-thirds of... The more that charities spend on fundraisers, the less money they have for direct program spending – the reason the organizations exist. On a 990 form...