Foundations, grant makers, and individual donors all want to use their money wisely in order to make a difference. With more than 1.5 million nonprofits in the United States, it can be challenging to choose which to support.
The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector provides insights on how to figure out which organizations to put at the top of the list for giving, volunteering, grantmaking, and supporting.
Support organizations whose missions you believe in! The Standards for Excellence code states that nonprofits need a board-approved mission statement that “explains its purpose clearly and consistently, a vision that describes the positive impact it wants to have on the community and a statement of shared values to guide its work for the community it serves.”
Take the time to check out the organization’s mission statement and support those who align with your own values and beliefs.
Take the time to learn about who is leading the organization. Of course, it will be helpful to review the staff list, but it’s also helpful to know who serves on the board.
The Standards for Excellence code states that nonprofits “need good leadership to achieve their goals” and the board should be “made up of individuals who care deeply about the organization’s mission, who are from the community, and who understand their fiduciary duties-being responsible for the organization’s legal and financial well-being.”
Some wish to work with small organizations, others with larger ones. Check out the nonprofit’s annual reports and annual information tax form (Internal Revenue Service Form 990) and publicly available profiles like those found on Candid.org to learn about the approximately budget size, breakdown of revenues, and more.
The Standards for Excellence code states that nonprofits will “have strong financial and business systems” in place and that they “use their financial resources and other resources to help achieve their mission, uphold their values, and serve the community.”
As described by the Standards for Excellence code, “nonprofits need resources to do their important work in the community” and the ways a nonprofit raises funds should be “truthful, transparent, and responsible”
Nonprofits raise resources from a variety of sources to meet their important community missions. No two nonprofits are exactly alike when it comes to their revenue picture.
Leading nonprofits take key steps to ensure that members of the community are involved in all phases of the organization’s work and leadership.
As the Standards for Excellence code states “people who are connected to the organization, such as staff, board members, volunteers, community members, help create the mission statement, vision, and values.” Excellent boards will have members that from the community, and nonprofits will want to ensure that their programs are evaluated in a way that is “respectful of diverse cultures and include feedback from community members.”
Nonprofits need to know about and be compliant with federal state and local laws. Important elements of this compliance include ensuring that nonprofits are properly registered in the state where they are working and when necessary, are also properly registered to engage in fundraising activities.
Oftentimes, nonprofits need to register with state offices like the Secretary of State’s office, the Attorney General’s office, or the Department of Agriculture in order to solicit contributions for their important work.
Ask if the organization is reviewed or checked out by any external organizations such as the Standards for Excellence accreditation or recognition.
Nonprofits participate in the Standards for Excellence program to strengthen their organization and set themselves apart as a top performer in their field. Standards for Excellence accreditation demonstrates that an organization has accountability, transparency, and a commitment to established practices. Earning the “Seal of Excellence” includes an independent third-party expert review of the organization’s policies, procedures, and practices. (A Standards for Excellence accredited nonprofit is often referred to as a seal holder.) Nonprofits of all sizes and service areas can find a tier that fits their needs.
