How to evaluate a non-profit, 501(c)3 organization efficiency before donating?

[Ed_Flecko]

Like my title says, is there an effective way of evaluating the efficiency of a given non-profit, 501(c)3 organization before donating?

Somewhere in my travels, I have heard that the most efficient non-profit organizations pass along better than 90% of their donations to their stated cause. The higher the %, the better of course. But, how do you verify that?

I think I've also heard that all 501(c)3 organizations have documentation that anyone can ask for, that are a requirement of the I.R.S., to give the layperson a more detailed look at how their organization is actually running and what they spend their donation money on.

Suggestions?

Thank you,
Ed

 

[Rhymingmechanic]

Try Charity Navigator.

 

[MSCH]

I usually just give money to panhandlers if I am feeling charitable.. I know 100% of it goes back into the economy and not into some executives 401K.

 

[slacktide_bitog]

Charity Watch and Charity Navigator are good sites to use

 

[Danh]

I usually just give money to panhandlers if I am feeling charitable.. I know 100% of it goes back into the economy and not into some executives 401K.

Into the economy or into cartels…

 

[Vil_Riker]

You can drill into their tax filings if you get excited about taxes - https://www.guidestar.org/ or https://projects.propublica.org/nonprofits/ if you don't want to create an account.

 

[MSCH]

Into the economy or into cartels…

still remember back in the day 2 panhandlers approach me on Miami Beach, one guy asked for a dollar... I said what can you get for a dollar... one of the 2 said, "hey it is 2 Milwaukee's Best tall boys for a dollar at the convenience store around the corner"... so I gave these guys 3 bucks and said go ahead and get a 6 pack of them, to which the panhandler said " GAWD BLESS YOU SIR!". any way thats why I give money to them... they will use it wisely... they are not going to spend it on administration or a new office chair..

 

[Blueshound]

The larger charities have to file an IRS form 990 every year that will give you a lot of insight into their activities. Guidestar was mentioned, or you can go straight to the IRS:
www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations

If you search for "copies of returns" by "organization name" , the 990 will tell you all sorts of things. For example how much they paid their executives.
I try to donate exclusively to local charities (food bank, land trust, etc.) that don't have heavy administration costs.

 

[Vil_Riker]

The larger charities have to file an IRS form 990 every year that will give you a lot of insight into their activities. Guidestar was mentioned, or you can go straight to the IRS:
www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations

If you search for "copies of returns" by "organization name" , the 990 will tell you all sorts of things. For example how much they paid their executives.
I try to donate exclusively to local charities (food bank, land trust, etc.) that don't have heavy administration costs.

Local is the best way.

 

[Vern_in_IL]

 

[skyactiv]

I usually just give money to panhandlers if I am feeling charitable.. I know 100% of it goes back into the economy and not into some executives 401K.

Wrong. The money panhandlers get goes towards their drug addiction and some of it makes it way back to the Mexican drug lords.

 

[MSCH]

Wrong. The money panhandlers get goes towards their drug addiction and some of it makes it way back to the Mexican drug lords.

how do you know the Mexican drug lords aren't also receiving money from the more legitimate forms of charity? You are making a claim based on your own prejudices.