Most people at some point in their lives have wanted to donate to a charity or an NGO. However, research also shows that most people feel uncertain about donating money to organizations as they are not sure about the credibility.
Before one donates to an NGO, there are a few things to consider. These things will help you decide on what you need to remember before giving or funding an organization. We have identified 6 critical things to remember before doing this to ensure that you donate to the right charity, where the funds go where they are intended to go.
The 6 Important Things To Remember Before Donating Or Funding An Organization
After a lot of research, the following things are identified as the most important to remember before you donate or fund an organization. These tips will ensure that you support the right organizations and keep you from falling victim to potential swindles. Here are our essential tips to consider:
1. Ask For Financial
Before donating, it is vital to keep in mind that nonprofit organizations have staff and overheads that need to be covered. Often they have a financial department that runs all of these things. As a donor, you can ask for financials to see how the donated funds are spent and to make sure that it goes for the right things.
While most nonprofits spend the funds wisely, there are always some exceptions. By checking for these things, you can have peace of mind that your funds will go where you intend for it to go.
2. Understand The Mission And Goal
It is always recommended that you spend some time looking at the goals and the mission of the organizations. Instead of donating blindly to an organization that you have no interest in, you should consider your research. A simple internet search tends to reveal most of what you need to know about a nonprofit organization.
Another thing to look for is their marketing campaign. The marketing campaign reveals a lot about the morals and the goals of the organization to ensure you donate to the right charity organization.
3. How Effective Their Methods Are
Not all methods are successful, but at least these organizations are attempting to do something for the greater good. Once you understand how they go about their business, it can give you peace of mind when donating. However, all of this information should be readily available when you look at some of the financials.
4. How Committed They Are
There are many pop-up organizations that do not actually stick to their goals or they admit failure too soon. However, one can often look at the record of accomplishment of these organizations to find out how effective they are. Here, you will gain some insight into the goals of the organization and how much commitment they have to their goal.
5. Safeguarding Of Information
Not every donor wants to be on the front page of the local newspaper and magazine when they have invested a significant amount of money. You might need to keep the security aspects in mind or rather just enquire about the process. Since you are dealing with sensitive financial information, the organization must have the means of safeguarding your information.
Checking the Impact created by any organization is another vital piece of information that can help you understand the effectiveness of an NGO. Impact measurement as a field is at a very nascent stage, but some organizations have already started measuring their outcome & impact. Asking for their Impact Report or Impact Measurement plan (if the project is still in the planning phase) can give you much more clarity. Proper Impact Measurement frameworks & reporting could be one factor that can help set apart NGOs worth funding from so many options available out there.
Even for our Outcome-Based Funding services, this is one of the most important criteria we consider to decide which NGO or projects we fund. Find out more about our Outcome-Based Funding services for donors here.
If you have worked to earn your money, you will understand that giving it away is not easy, especially if you don’t trust an organization. It is vital you find trustworthy organizations that are dedicated to achieving their goals. These tips will help you to donate better and ensure that you have peace of mind where your funds are spent.