Evaluating Non-Profits

 

I’m not an expert but I have done more research than the average Jill has, and have a sensitive heart so I will lay out for you some steps that I will take in the future when looking to financially or emotionally support a non-profit.

 Red Flags:

• Use of emotional language
• Does it feel like a political campaign trying to get your money and vote rather than a Christian organization excited about God and their work.
• Are you attracted to the organization because it has a charismatic leader who carries an undue influence? I once attended a church with a charismatic leader and when he had an affair and left the church there was a big upheaval in the church. One leader who was left behind said they wouldn’t hire another leader like that because it was more about the leader than a church.
• Did your logical brain get turned off in the presentation? Did your emotions flare up and affect your decision making?

 How to choose an organization to support:

• Ministry Watch is a Christian watch-dog organization. At MinistryWatch.com you can search their ministry finder to see their transparency scores, the financial statements,
• Go to MinistryWatch.com and search their blogs to see if the organization, founder, or president is mentioned in any of their well-researched blogs.
• ECFA (Evangelical Council for Financial Accountability) enhances trust in Christ-centered churches and ministries through its annual accreditation of organizations based on Seven Standards of Responsible Stewardship™, drawn from Scripture. You can go to their website ECFA.org and search for an organization.
• Charity Navigator.org provides information on all non-profits by evaluating their website and the Form 990
• Propublica works to keep information public. projects.propublica.org/nonprofits/ The Nonprofit Explorer includes summary data for nonprofit tax returns and full Form 990 documents, in both PDF and digital formats.
• Roys Report: Search for your organization at julieroys.com
• Guide Star: : Search Guide Star for the most complete, up-to-date nonprofit data available at guidestar.org
• An internet search about the organization searching for the organization and words like: danger, caution, concern.
• Do a reverse image search for images on their website. Are there current pictures of their impact? Are they mostly generic? Do they have the copyright to the images?
• Consider the effect of the accompanying visuals on their website— does it feed into negative stereotypes? Would it cause fear or panic?
• Follow what you’re interested in, not what’s popular. Think about what God has put on your heart and find someone doing that and support that. Even within the field of Bible translation you have many choices. Don't just give to the organization that can afford to mail you exciting flyers.
  
• Compare the long-term vs. short-term impact of an organization.
• Contact them and ask any questions you have directly. Does someone respond?
• Get on their mailing list to receive emails. What is their communication like?
• Approach information from the organization with skepticism. You don’t need to be cynical, just a healthy amount of emotional skepticism will keep you alert to things that don’t sound right.
• Pause and consider how and why you are going to support.
• How long has the organization been around? What is their history?
• Look for manipulation in their language or interactions. Is there a sense that you shouldn’t question them because they are doing God’s work? Is there a lack of details only discussion of the big picture?
• Do they cooperate with other organizations? Other churches? Other accountability?
• When telling their stories and asking for money do they use emotional language?
• Do they respond to requests for information, 990s, and leadership information? 

 

Use of the Form 990:

Every organization that has been recognized as tax exempt by the IRS has to file Form 990 every year, unless they make less than $200,000 in revenue and have less than $500,000 in assets, in which case they have to file form 990-EZ. Organizations making less than $50,000 don’t have to file either form but do have to let the IRS know they’re still in business via a Form 990N "e-Postcard."

Warren Cole Smith from Ministry Watch explains more:

“But there’s an exception to this requirement.  If your organization is a church, you do not have to submit your Form 990 to the public.  The logic goes like this:  Churches have leadership and members who live in community with each other.  Almost all the donors come from within that community.  Whatever transparency and accountability are necessary will be provided by the rules and structure of the church.  The government has no business interfering in a church’s internal affairs. 

“It’s a system that has worked well for decades, but it is a system that is rapidly breaking down as more tax-exempt organizations that clearly are not churches are claiming the church exception.  These organizations are using this exception to keep not only the government, but also donors, from seeing how their money is being spent. 

“This practice is not new.  Controversial and sometimes outright fraudulent organizations have been claiming the church exemption for years.  It’s a common practice of televangelists and prosperity gospel preachers.  From 2008 to 2011, Sen. Charles Grassley investigated six televangelists – Benny Hinn, Eddie Long, Joyce Meyer, Kenneth Copeland, Creflo Dollar, and Paula White-Cain.  The investigation was necessary in part because their organizations were not transparent in their dealings.  The organizations they led spent donor money on mansions, lavish lifestyles, and private jets.”[i]

Red Flags Concerning the Form 990:

• Lack of existence of Form 990 because they claim the exemption
  

• Fund-raising amount shouldn't exceed 10%

• Is the revenue growing at a rate similar to the economy

• Board members shouldn't get paid

• Variation from year to year

• Large salaries  for staff

• Part IV has 4 columns- Columns C and D should be a small % of Column A
  

Consider giving not just to Christian organizations but non-profits like ECFA, Ministry Watch and Charity Navigator so that they can continue to provide oversight, accountability and education.

Self Analysis:

Do I have any insecurity about my abilities, looks or level of material success? Are they affecting who you I am supporting and why?

In what ways am I susceptible to flattery? Does this reflect any insecurity that I have may have about my abilities, looks, or level of material success? Is this affecting who I support?

Do I think that just because they are a Christian organization and talk about God that means they are worthy of my support? 

Why are Christians more gullible than non-Christians?

How can I be as wise as a serpent but as harmless as a dove?