Americans donate nearly $300 billion annually to more than 1.2 million charities and religious groups, according to Giving USA. Most donors believe that they are giving to worthwhile causes, but few conduct the necessary research to determine how effectively an organization uses donations to accomplish its mission. People who wouldn't dream of investing money without performing the necessary due diligence may blindly give money to organizations that use the majority of donations for executive salaries, fundraising and advertising. This is why due diligence is so important before making a donation.

Here are a few tips for vetting a nonprofit before you give:

Align your goals

The first step in choosing a charity is thinking about what you would like to accomplish. If the scope of your aspiration is local, find charities that are based in your neighborhood or city. If you're most concerned about national and global issues, like worldwide hunger or cancer, look for nonprofits that are equipped for such a large challenge. Remember that you can't always judge a big organization by its publicity, since that may just reflect a large advertising budget. Also, be on the lookout for questionable charities that have a name that closely resembles the name of a well-known, legitimate…

Welcome to Research Friday! As part of a continuing weekly series, each Friday we invite a nonprofit scholar, student, or professional to highlight current research reports or studies and discuss how they can inform and improve day-to-day nonprofit practice.

There are over 1.5 million nonprofits in the United States. Of those, three-quarters (almost 1.2 million) have annual budgets under $1 million, and most are even smaller. What these organizations lack in size, however, they make up for in impact. They respond to localized needs, are absolutely critical to community building, and are staffed by people with deep knowledge and caring for the communities where they live and work. These organizations often serve communities that have been abandoned by countless others. Yet, in the Nonprofit Finance Fund’s (NFF) work with small nonprofits (most recently through our Capital and Capacity for Economic Recovery Initiative), we’ve…

Don’t get me wrong. Google is my best friend. I shudder when I think of how difficult it was in the dark ages prior to this uber useful search engine. However, Google is a tool, and like other search engines, a data middleman, not the end result. I myself have been frustrated by even its super powers to extract data that I know is out there in cyberspace.

So how do we search so we can find that most wonderful of prizes? How to best use the Internet to find the data we need? How do we judge the quality of the hits we get?

Although I do not claim to be an expert, I am happy to share what I’ve learned in more than a decade of mining the Internet for information to support grant proposals.

Information search tips:

• Less is more. Try using fewer key words in your initial search, particularly if you are having problems getting hits.
• Having said that, I have had luck with long, specific searches although it is not typical. It doesn’t cost anything to try it though!
• Review the hits to help refine your search; if the search engine is picking up on the wrong key words get rid of them.
• Rearrange the words in your search; sometimes the search engine focuses too much on the first word in the string.
• Include words like “study” and “best practices” in the search to find research based information. I have found just adding “study” will give me much better hits.…

Unlike industries tethered to the private or public sectors, nonprofit organizations have an onus to further a common interest. That’s often why people get involved with them in the first place. Whether it’s a charity, a civic league, a social club, or any other type of NPO, the end product is likely to be an evolving contribution to society rather than a quick buck.

As flag bearers in the march for a greater good, it seems almost requisite that nonprofits should make an effort to go green - insomuch as what’s under our control. In the light of our deepening catalog of climate change research, many believe that the number one concern for our society should be a heightened effort to reduce our environmental impact. Here’s what your nonprofit can do to go green while still carrying out its mission:

1. Before you organize your next benefit, fundraiser or elsewise-related event, think about the cleanest way to do it. Public exhibitions inherently produce a good deal of waste, including (but not limited to) paper, food and fuel. Have your event at a convenient, easy-to-reach venue that won’t have people driving their cars from all ends of the earth to get there. If you’re scheduling a meal or some snacks, try reusable plates and utensils. If not, find compostable or biodegradable tableware. Skip the paper name tags and chintzy decorations and organize an activity to have people introduce themselves to one another.…

Question: My board of directors is not effective at raising funds to support our organization. Many members seem afraid of the issue and say things like “I will do anything but fundraise.” How do I get them involved?

Effectively engaging board members in fundraising is a very common challenge for nonprofit organizations. Many board members are unaware of their responsibilities to fundraise or feel inadequate in meeting the challenge. Others may have had bad experiences or have misconceptions about fundraising. While it can be difficult to engage board members in fundraising, there are a few steps that will help ease the way, build confidence and improve effectiveness. 

Set clear expectations

Start by setting clear expectations about the board of directors and individual members’ roles and responsibilities for fundraising. Evaluate your board’s current perception on its fundraising role. If it is vague or undeveloped, work with the board leadership to define and elaborate on expectations. This may require education and plans for overcoming obstacles. It may be helpful to share information about a nonprofit board of directors’ two…