Donors

Donor Due Diligence

1. Find a Nonprofit that Can Fulfill Your Charitable Vision

Take the time to identify nonprofit(s) whose mission(s) are most closely aligned with your personal values and are best able to perpetuate your charitable intent. Review the nonprofit’s strategic plan to identify key success indicators in fulfilling its mission. Be sure that the nonprofit is fulfilling its mission efficiently and effectively by reviewing its expenses in relation to its successful outcomes. Ask the tough questions to understand how your gift will better enable the nonprofit to improve its outcomes. The time you take to investigate your best options before you give will empower you to make an informed charitable investment leading to greater societal returns.

2. Focus Your Giving

Once you have defined your charitable intent, focus your giving on those organizations best able to produce the impact you desire. Many donors make the common mistake of spreading their giving among several nonprofits much like you would in diversifying an investment portfolio. This makes good sense in your personal investments, but diminishes the charitable impact you desire in your philanthropy. Select key nonprofits committed to delivering the outcomes you desire. Choose those who are most efficient and effective and concentrate your giving with them. Your societal return will be greatly enhanced with a focused giving strategy.

3. Stay Informed – Be an Involved Donor

Be sure to monitor the outcomes of the nonprofits you choose to support. Subscribe to their newsletters and be sure you are receiving an annual report. Schedule regular visits with board members and staff as a means of evaluating the return on your charitable investment. Is the nonprofit delivering to you, the donor, what was promised when they sought your gift? If not, why? If they have met or exceeded your expectations, how can you help them deliver even greater societal impact through your financial gifts, time, or expertise? Staying in touch with those you support is an excellent means of ensuring your gift is being used in the manner in which you intended. It is also a great way for you to provide valuable insight to the nonprofit, assisting them to better fulfill its mission.