Did you have a decent year? If so, good job! That little voice in your head may be encouraging you to give part of your good fortune to help those who are less fortunate. Knowing where to give to really make a difference is tough.
Step one is easy – follow your heart. Give to a cause that matters to you.
Step two is harder – follow your head. This requires homework. There are charity review websites, but the best method is to learn about an organization from multiple sources. Look at the website and brochures. Attend one of its events and spend time talking with the leaders. You may have myths or assumptions about certain nonprofits that are simply not true – ask about those concerns.
For example, you may want your gift to be used to help local folks. Ask about this. Some people assume our United Way is a large, national nonprofit. In fact, United Way of Southwest Colorado is completely focused on helping Southwest Colorado – we are as local as you can get.
Next, you want to be sure that the funds are managed wisely. No fancy private jet for the executive director, right? A nonprofit should make its financial documents (990 and any audits) available to you for review. Many people search particularly for a low overhead rate. Although controlling costs is important in any business, nonprofits feel extra pressure to spend less because revenue often comes from donations. This pressure can lead nonprofits to avoid spending when needed and loss of effectiveness. It is possible to have a very low overhead rate, while accomplishing nothing. I recommend a balance between sensible spending and measureable results – you want to see both!
Another clue about an organization is leadership. Look at the board of directors (volunteers) and the Chief Professional Officer (CPO, paid staff). Do you know and trust them? Do they have the skills to perform effectively? Have they made decisions strategically? Do they donate to the organization? Meet with the CPO and get a sense of the leadership style and the tone he or she sets for the rest of the organization.
Ultimately, you should be looking for goals and tangible results. The purpose of a nonprofit is to help the community with some concern or problem. Is that happening? Or have the goals become lost or irrelevant over time?
The best way to do all of this homework is to volunteer, spend time with an organization, get to know the people involved and ask those important questions.
For those who do not have the time to do all of that, but still want to give, we are here for you. At United Way, we spend our time getting to know local nonprofits, asking those tough questions and helping them to work most effectively for the good of our community. When you give to us, you really give to 40 local nonprofit partners that we have vetted. Get to know United Way of Southwest Colorado (unitedway-swco.org) and you will be pleased that you did. Thank you for Living United.
Lynn Urban is president and CEO of United Way of Southwest Colorado.
