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Column 13

Daily Camera

Enid Ablowitz

Caveat Emptor

Not long ago, Clint Talbott wrote a column revealing some very questionable fundraising practices and asked the fundamental question:  “How much of your money really goes to the charity?”  His question was in the context of paid telemarketers soliciting for organizations through the sale of tickets, but the question has broader implications.  As donors, we really want to know our gifts are making a difference, and organizations have an obligation, in fact a fiduciary responsibility, to spend donors’ money wisely. 

When you decide to make a major purchase, you probably take time to investigate your options by checking out consumer ratings, comparing prices, evaluating quality, and assessing the reputation of the product.  Making a significant gift to a non-profit should be taken just as seriously.  Before you give, what should you know about an organization?

You will probably want to know that the organization is stable, has good management and uses your gift for the purposes intended.  But, what does that mean?

Stability can be assessed in several ways.  Try to determine the qualifications of the Executive Director, the paid employee who leads the organization under the direction of the board.  How long has that person be committed to the mission of the organization? Does he or she have the passion and drive to advance the cause? Is there sufficient sophistication among the staff to handle the legal and accounting requirements necessary to run a non-profit? 

Is the board made up of token, letterhead members, or dedicated, volunteers who make their own gifts?  Their participation is critical, regardless of the amount of their gift. Would you buy stock in a company where the board members had no financial stake and didn’t provide policy and direction at board meetings?

Accountability seems obvious, but is all too often missing in donor relationships with a non-profit.  You have a right to know how your money is spent.  You should understand the financial health of the organization:  does the non-profit run in the black? What are all the sources of its funding?  Is there a deficit, and if so, why?  What were last year’s actual expenditures? And, one of the most important questions, how much money is actually spent on the mission of the organization, after overhead and the cost of fundraising?

How do you get answers?  Start with a phone call.  Ask to speak to the director and mention that you are considering making a charitable contribution.  Request a letter providing the essential information.  Do not settle for “we’ll send you our brochure.”  You want specific answers to specific questions.  One of the things you can determine this way is how donors are treated.  If you like what you hear and see, make a small, token contribution.  Then, ask for a proposal based on what you would like to accomplish with your gift.  If your intentions are to make a large gift, (the word large being relative to your personal wealth) there are many more steps in your “due diligence” including full financial statements, minutes of board meetings, on-site visits to the organization, and direct discussions with the leadership, focusing on the impact of your gift and how the outcomes will be measured. 

Why bother?  Because your philanthropic experience is not an obligation, it is a choice, and important choices require thought.  If the organization is aligned with your values, and are good stewards of your generosity, great things will happen!

Send your questions about making charitable gifts to Enid Ablowitz, Features, Daily Camera, 1048 Pearl St., Boulder, 80302 or e-mail???/Fax????

Ablowitz, the Asst. Dean for Advancement at CU’s College of Engineering is a Certified Fund Raising Executive and has been working with donors for over a decade.  She is writing a book called Making Money Matter: 8 Steps to Thoughtful Giving.

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