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HELPFUL HINTS: Asking Nonprofit Organizations the Right Questions
Many dedicated donors understand the
importance of asking the right questions
to ensure that their giving goals are
accomplished. It is essential, particularly
during challenging economic times, for
you to further your understanding about
nonprofit organizations’ budgets as well as
their short and long term strategic plans.
We encourage you to ask your favorite
charities the following questions:
IS THE BOARD OF TRUSTEES TAKING
ACTION TO OFFSET NEGATIVE
ECONOMIC IMPACT?
Stories of corporate restructuring and cre-
ative ways to cut costs permeate the news on
a daily basis. While the actions of publicly
traded companies are well-documented for
shareholders, this is not always the case with
the nonprofit sector. Donors should hold
accountable the charitable organizations they
support. Asking about specific actions the
organization is taking to combat today’s
difficult economy, reviewing its business
plan, and examining its budget are great
ways to increase your understanding.
IS THE ORGANIZATION
COLLABORATING WITH COLLEAGUES
IN THE PHILANTHROPIC SECTOR?
The need for services and solutions is
increasing, and the costs associated with
delivering them are also escalating. Facing
this conundrum, it may be worthwhile for
nonprofit organizations to consider join-
ing forces to achieve the higher good. You
should ask if, and how, a charity is working
with other nonprofit organizations to meet
needs in the most efficient way. If the
organization is not collaborating with others,
you may want to encourage them to do so.
WHAT STEPS HAS THE
ORGANIZATION TAKEN OR
IS IT PLANNING TO TAKE
TO CUT ITS BUDGET?
Today’s economic environment has caused
many organizations to reevaluate how they
operate and to make difficult budget
decisions. Numerous charities are revisiting
their strategic plans and programs so that
smart decisions are made to uphold
their core missions. Ask the nonprofit
organizations you support what steps they
are taking along these lines and what
trade-offs they may be facing.
CAN THE ORGANIZATION QUANTIFY
ITS IMPACT AND SERVICE NEEDS?
If you have supported several charities in
past years, you may consider examining
them more closely to identify which has
the strongest need. An increasing need for
resources and services, as well as growing
evidence of their impact, are strong
indicators of organizations that continue
to require support from donors. Charities
should be able to quantify their service
needs and to openly discuss their track
records when you ask.
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