HOW TO CHECK OUT A CHARITY
How can a viewer learn more about a charity that solicits money on TV to find out if it’s one of the majority that do valuable work?
First, say experts in fund raising, viewers should request an audited financial statement. Any charity that doesn’t gladly give one should be considered suspect.
Don’t be surprised if it takes a few weeks for the financial report to come in the mail. Charities aren’t always accustomed to donors asking for them. But unless you’re already familiar with the charity, don’t give any support until you get the financial material you requested, these experts say.
You can ask religious charities whether they belong to the Evangelical Council for Financial Accountability. ECFA members have pledged to provide financial statements on request and meet other ethical fund-raising standards. A list of the council’s members may be obtained by writing the Council at Suite 400, 1825 Eye St. NW, Washington, D.C., 20006.
The National Charities Information Bureau (6th Floor, 19 Union Square West, New York, N.Y. 10003) evaluates the financial credibility of national charities and sends out its reports on request. The bureau is closely affiliated with United Way of America and its standards, critics note, tend to favor established charities whose administrative and fund-raising costs tend to be lower than those of charities just starting up.
The Philanthropic Advisory Service of the Council of Better Business Bureaus (Suite 300, 1515 Wilson Blvd., Arlington, Va., 22209) also sends out its evaluations of charities on request. The evaluation includes financial data, comments on the composition of the charity’s board of directors and historical information. For $1 and a stamped, self-addressed No. 10 envelope, the BBB will send its latest bi-monthly “Give, But Give Wisely” guide that lists major charities that meet--and don’t meet--its standards.
Non-religious charities soliciting in the City of Los Angeles must have a certificate from the Department of Social Services. The form lists the agency’s fund-raising goal and spells out the proportion of funds the agency says will go to the cause, rather than to fund-raising and management costs. Those wanting to check on a charity also can call the department at 485-5003.
None of these organizations makes a serious effort to find out whether donated dollars will actually do any good, even if financial standards are met. Their evaluations are limited largely to reviewing financial data submitted by the charities without any independent examination.
Experts suggest that donors watch the literature that a charity sends out in order to determine, over a period of years, whether it achieves its stated goals or just makes pitches for new ones. Getting involved as a volunteer also helps donors gauge how well a nonprofit organization is run.
