Giving to charity involves the donor with a cause bigger and more important than themselves. Donors want to give back and have an influence, but they also want to avoid being pestered. It is important to dig in a little about the Mother NGO and know what cause you are supporting donations to the NGO.
Here are seven inquiries that potential contributors may have for your nonprofit before they give.
Are you a qualified nonprofit organization?
These queries are motivated by two ideas:
- Donors might wish to discover whether the charity is reputable.
- Can I deduct my donation from my taxes? Most donors view this status as a significant indicator of legitimacy, reassuring that they would put their money to its intended use.
In our experience, donors rarely ask for a play-by-play history, but knowing how long your organization has been established can affect donors’ perceptions. They will also probably want to know how long it has been around.
What are your organization’s activities, goals, and operations/programs?
Personal values and interest in the so-called “problem area covered” by the nonprofit organization ranked top with individual donors, per the 2018 U.S. Trust® Study of High Net Worth Philanthropy. Individual or corporate donors will want to know about the mission of your organization, how it has been accomplished in the past, and your plans for the organization’s current goals, initiatives, and operations. Donors are more likely to ask questions like “Did your mission switch over time” and “Will your mission be the same in the next 5-10 years,” especially if they consider providing greater or longer-term support for your organization.
Similar to the above, donors may also wish to know if your organization has ever been or is presently embroiled in any legal proceedings, particularly if doing so could divert funds from the donors’ intended impact or harm the organization’s reputation. Lawsuits occur; if your organization gets involved, be prepared to speak the truth so that funders are confident in your organization’s integrity. One strategy to reduce the risk of litigation is to adhere to best practices for nonprofit operational management.
Can your organization communicate what they do?
A charity will struggle to carry out its initiatives if it has trouble communicating its objective. Organizations with a clear sense of identity and an institutional change strategy are committed to focusing on institutional change. The dot.com boom and crash demonstrated that for-profit firms couldn’t compete with brick-and-mortar establishments. They had a clear sense of who they were and what they did if they couldn’t specify what function they served and what product they offered. The same is true with charities. Find another charity if this one can’t describe who it is, what it does, and why it is needed. Too many reputable groups are aware of who they are, what they do, and why they are required, and the stakes are too high.
Do your organization’s programs make sense to you?
If you agree with an organization’s mission, consider whether you agree with its programs. You support the cause and hope for the outcome, but do you think the group is pursuing that goal in a way that makes sense to you and is fruitful? Do you think an organization that wants to encourage kindness toward animals goes about it in a way that makes sense to you, or does it just stir up more controversy? Would you like your research institutions to engage in advocacy? Do you want your policy organizations to influence outreach or the other way around? You might, or you might not. It does not imply that each business needs to have a single area of specialization. But it also doesn’t imply that you must back every group with the same beliefs. You may not support the tactics just because you support the ends. Ask yourself if the charity’s approach to achieving the end it seeks to achieve makes sense to you if you are certain you want to support it.
Who is the decision-maker of the organization?
In general, donors care about how their money is used and work hard to get it. Donors, whether individuals, foundations, or businesses, want to know that organizations will utilize their money sensibly and for the intended purpose. You need to identify who is in charge of making financial decisions, who protects the process, and who has the ultimate authority to oversee/monitor it.
Similarly, funders may find it beneficial to show management or director commitment. Donors may feel more confident in your dedication to accomplishing your purpose if they learn that your organization’s leadership gives their own time and donate money to charitable causes.
What does NGO do to protect donor information?
Opportunities to steal money, information, and data are continually being sought after by thieves. Unfortunately, there is always a risk of cybersecurity breaches. Nonprofit organizations are a common target for hackers because they access many donor data, including crucial financial information. Furthermore, many nonprofit organizations become easy targets because of budget restrictions in areas like network security. We advise having a strategy and being prepared to share it with current and potential contributors. Following recommended data storage and cybersecurity procedures can reduce the likelihood of a breach.
Does your organization have regular and ongoing donations?
The necessity for the Financial Accounting Standards Board (FASB) Accounting Statement Update (ASU) 2016-14, which modified how nonprofit companies report liquidity, was influenced by nonprofit organizations declaring bankruptcy due to liquidity problems. Donors want to know that your organization has the financial resources to carry out its operations and objectives, whether provided by regular ongoing donations to the NGO, sizable one-time gifts, or significant capital campaigns.
The diversification and concentration of your asset base are other crucial considerations: Do you have a diverse support base, a small number of sources, or a single sort of donor providing the donations in NGO? Being ready to respond to these inquiries might help reassure supporters that your organization is not in danger of going bankrupt.
Conclusion
Knowing the charity well before supporting them is wise, so you support the best NGO in India. As your job doesn’t end with donating the money to charity, it also ensures that the donations in NGO is being used well and to its utmost potential. For more information on such or related topics, keep reading our blogs. Hare Rama Hare Krishna!!
Also Read: How an NGO Helps Needy People
