7 Signs a Nonprofit is Trustworthy
Today, there are over 1.5 million nonprofit organizations in the United States. When you look to donate your money, time, or effort to a worthy cause, you’ve got lots of options — maybe too many. While you can narrow your choices down based on the missions and values that resonate the most with you, it’s also essential to ensure your hard-earned money makes a genuine impact. So, how can you tell if a nonprofit is reliable? Use these seven key indicators to determine which nonprofit is trustworthy:
1. Transparent Financial Records
Trustworthy nonprofits maintain transparent financial records. They should readily provide annual reports and financial statements to the public. Many list their most recent fiscal reports on their website or publish them in a physical form each year. This transparency ensures that funds are being used appropriately and for the intended purpose.
2. Positive Reviews
Just as you check reviews before purchasing a product, charity reviews allow you to learn about others’ experiences with nonprofits. Websites like GuideStar and CharityWatch offer insights into various nonprofits, shedding light on their operations and impact. Some nonprofits receive a badge on their website from such organizations when they meet certain criteria.
3. Charity Navigator Rating
Charity Navigator is a premier evaluator of nonprofits. A high rating on this platform indicates the organization is financially healthy, transparent, and accountable. Look for nonprofits with a 3- or 4-star rating, as this suggests they excel in these areas.
4. Track Record of Success
Investigate a nonprofit’s past projects and initiatives. A history of successful endeavors signals that the organization is effective in its mission. These stories often appear on a nonprofit’s annual report, blog, or social media accounts.
5. Professional and Active Board of Directors
A dedicated board of directors actively participates in the organization’s decision-making process. These crucial individuals should have expertise in the nonprofit’s focus area and be committed to its success.
6. Openness to Questions
Trustworthy nonprofits welcome inquiries from potential donors or volunteers. They should be willing and able to answer questions about their operations, finances, and impact.
7. Regular Updates and Communication
Organizations that regularly update their stakeholders about their activities, achievements, and challenges are more likely to be transparent and trustworthy. Look for social media accounts, newsletters, blogs, and more.
Before donating to or volunteering with a nonprofit, do your due diligence and research the organization’s integrity. Remember, a trustworthy nonprofit operates with transparency, accountability, and commitment to its mission. Here at For Others, we use the same techniques to carefully evaluate ourselves and our partner organizations. Because of our high standards and unwavering commitment, you can be sure that your donation to For Others goes directly to where it’s needed most: in support of real children in foster care across the nation.
Interested in learning more about us? Send us an email at info@forothers.com, and we’ll be happy to answer any questions.
