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What You Should Know Before Giving

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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?

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How Much Should A Charity Spend on Programs?

How much should a charity spend on its programs, as opposed to administration? How much salary is too much?

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.