Questions to Ask Charities Before Giving
Tax-exempt organizations are the fastest growing sector in the U.S. economy. Over 60,000 new charities are created each year. There are over 1.6 million nonprofit organizations, and the competition for funds has become intense. What questions should you be asking organizations to determine where your money will do the greatest good?
Use of Funds
Cost allocation is an inexact science, and not every organization uses the exact same criteria for deciding whether an activity is program, administration, or fundraising. Charities simply need to be able to demonstrate that their allocations are "reasonable," should the IRS ever ask for proof.