A survey conducted by the Chronicle of Philanthropy — the first to measure public confidence in charities since 2008 — has found that two-thirds of Americans have a fair amount of confidence in charities. More than 80% indicated that charities do a "very good" or "somewhat good" job helping people.
A significant number of respondents, however, expressed concerns about charities' money management. A third said that charities do a "not too good" or "not at all good" job spending money wisely and 41% said their leaders are paid too much. Notably, half said that, when deciding where to donate, it is "very important" to know that charities spend a low amount on salaries, administration and fundraising. And 34% said such knowledge is "somewhat important."
Consider these statistics and Form 990, which is one of the primary sources for information about your organization. In addition to required financial and organizational information, Form 990 allows an organization to communicate its mission, activities, program service accomplishments and significant financial and governance policies. Now is a good time to review your most recent Form 990 filing. Are you clear about how you help your constituents while you manage your not-for-profit organization's money wisely?
In addition, having an annual audit performed by a respected firm with not-for-profit specialization can also have a positive impact on public perception.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.