"Porker Fundraising"?

A recent Press Telegram editorial on "Porker Fundraising" painted nonprofit charities with a pretty broad brush. The so-called charities they mention that pass on little to actual programs are often professional money machines and do not reflect what our local charities are doing. When a charity calls, potential donors should always ask, "How much of my dollar goes directly to the programs?" Then get their tax ID number and find them on Guidestar.org.

Due to the past public flaws of large national charities, regulations for nonprofits are being made more strict each year. Even small charities will now have to file some form of an annual 990 - a nonprofit's tax return. Organizations such as Guidestar, Network for Good, and Charity Navigator make it easy for the public examination of any charity.

Financials, annual goals, board members and other information is just a few clicks away. Christian charities who are not certified members of the Evangelical Council for Financial Accountability (http://www.ecfa.org/) should be carefully vetted prior to making any donation - if you give to them at all. Here in Long Beach you should check if a nonprofit is a member of the LB Nonprofit Partnership or the Chamber.

The Long Beach Rescue Mission endeavors to provide quality services while building trust with its donors through honest donor appeals and transparent financial accountability. While increasing budget for needed expansion of programs and staffing, we have been able to keep our fundraising under 15% for the last two years. How a nonprofit allocates expenses is often the best way to measure program effectiveness. But beware of functional expense allocations that hide fundraising within printing, postage, or contractor fees. Also check to see how the chief executive and other administrative staff compensation is allocated; many times that is allocated to program only, not to management or fundraising.

Capital campaigns for critically needed expansion and infrastructure as well as donor acquisition may temporarily inflate fundraising, which is not indicative of mismanagement. Just as in business, it takes money to raise money. The difference is that in a nonprofit, no one individual may receive personal benefit. It is not easy leading a nonprofit these days and it takes as much or more business acumen for a charity to be successful as does a for-profit.

Is there a local community service charity that you are interested in helping? Sit down with the organization's chief executive and ask questions. The best questions to ask are: What is your mission statement? What are your core values; i.e. what drives your programs? What percentage goes to program; what has been the average over 5 years? Do you have an annual independent audit? Are financials made available to the public? What is your debt load, if any? Is the organization certified by a national association? Is the executive staff involved in the community beyond the four walls of the organization?

Then ask yourself a few questions: Does the mission statement of the charity and your interests align? Do you feel comfortable with the organization's leadership and communications? Charities working with the least and the last of our society need strong community support, and in such a busy world as ours it is difficult to find good leaders to provide proper board oversight. Are you willing to give of yourself beyond a check to see them succeed? Volunteering is a good way in which to investigate a potential major gift investment. A well-run community charity is an excellent entity in which to leave a legacy, but often the last consideration in one's planned giving.

The key is finding a cause that is close to your heart and investing your time, talent and treasure into it; you and the needy of our community will be blessed for your investment.