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For Donors

Donors are always encouraged to gather information about the organizations to which they contribute. If a donor is uncomfortable with information they find, the donor should seek clarification. The organization in question should always be given the opportunity to clarify issues.

Nonprofit Accountability - The Top Ten List for Donors

1. Ask the organization for their latest annual report.
   
2. Obtain a list of their Board of Directors.
   
3. View the group's latest IRS Form 990 at www.guidestar.org.
   
4. See if the organization has a charitable solicitation license from the Michigan Attorney General's Charitable Trust Section at 517/373-1152. (Please note that only organizations that raise more than $8,000 a year, or pay for fundraising services, are required to file).
   
5. Check around - ask friends and families what they know about the group.
   
6. Ask the organization how your money will be spent.
   
7. Determine whether or not you agree with the organization's mission.
   
8. Ask whether the group has a yearly independent audit performed on its financial statements.
   
9. Have a general understanding regarding charitable tax deductions for your donation www.irs.gov/charities/article/0,,id=96102,00.html.
   
10. Ask the organization what type of internal controls it has in place to ensure accountability.

Additional Resources for Nonprofit Donors:

• www.give.org - The Better Business Bureau Wise Giving Alliance Charity Accountability Standards serve as a guide to help donors understand acceptable nonprofit practices.
  
• www.charitynavigator.org - This site provides in-depth analysis of the financial health of the nation's largest charities.
  
• www.charitywatch.org - CharityWatch rates top nonprofit organizations, provides tips for wise giving and lists frequently asked donor questions.
  
• www.guidestar.org - Guidestar provides IRS Form 990's for thousands of organizations. The forms are easy to view and include financial data and narratives about objectives and program accomplishments. Also see donor resources for relevant articles concerning how to read Form 990. Free registration is required to view 990s.
  
• www.boardsource.org - Frequently asked questions concerning nonprofit board governance are posted on the site and visitors can ask questions about legal obligations of nonprofit boards.