Hold them accountable.
Some nonprofits are incredibly impactful, unsung heroes. Some perform their calling and deliver their mission in extraordinary ways. Nonprofits are on the battle lines, feeding people, clothing them and sheltering them. Some are adding value to people's lives through the arts or recreation. Some nonprofits protect our history, our animals, our wildlife, our earth. The list goes on and on.
The ugly truth is that although many nonprofits deliver on what they promise, sometimes there are wolves in sheep's clothing. Sometimes nonprofits take advantage of the goodwill of others and exploit their generosity. It's the ugly, underbelly of this work. Here are some pointers to consider as you're looking to invest in or donate to a nonprofit:
1. Nonprofits need strong internal controls. Don't be afraid to ask about how money is handled before donating. If there isn't a defined process or it seems shaky, it's best to invest elsewhere.
2. Does the image match the impact? People give to causes they THINK are making an impact, but is impact truly being made? Think critically when seeking answers to this one. Ask around and see if the stories from those being served and partner organizations match up with the story you're hearing from the nonprofit.
3. If it seems to good to be true, it likely is. Be discerning about what seems reasonable. Nonprofit work is challenging. If the picture painted is too rosy and not coupled with some challenges, it's worth a closer look before donating.
4. It matters who is doing the talking. Smooth talkers who exaggerate success, talk around issues, or avoid difficult questions should be questioned.
If you're a nonprofit, make sure you hold yourself accountable. Get your house in order. Be authentic. Make an impact. There are plenty of people who want to donate, just rid them of any pause in investing in your work.
-Mindy Muller, CFRE, President/CEO of CDP