In our practice we represent clients that are both non-profit corporations and individuals that want to give money to non-profit corporations. The people that want to give money often ask us how they can be sure the money they are giving will actually be applied for charitable purposes. The non-profit corporations likewise ask how they can let people know that their donations are being managed and applied wisely, and not supporting inflated administrative salaries and other wasteful spending.
Recent scandals involving charities combined with greater internet access has led to the development of several watchdog organizations who monitor the activities of charities. We encourage our non-profit corporations to register with these organizations to obtain their seals of approval. We also direct everyone who is thinking about giving to research their selected charities online.
Charity Navigator is perhaps the most thorough and independent organization for evaluating charities (www.charitynavigator.org ). Another popular site is www.guidestar.org , which actively monitors the IRS filings of thousands of charities. The Better Business Bureau (BBB) also sponsors a non-profit site at www.give.org. At all of these sites you can search the records and ratings to see which charities are worthy of your donations. Likewise, charities can register at these sites to obtain their certifications after an evaluation.
It is important to know that these site only offer information. They do not investigate or prosecute charities which abuse their finances. Any suspected fraud by charities should be reported to the Texas Attorney General’s office (www.oag.state.tx.us ) for investigation.
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