The Father of a world number one player and I recently discussed that player's charity and how it was set up at Wimbledon. I heard a lot about how the charity is being set up and did not get much opportunity to give any suggestions. At the end of our 30 minute conversation, the final was on...
The difference between a good and a bad charity is that the financial gifts go into the staff pockets in the form of salaries or perks or in the case of a good charity towards the purpose of the charity. Having been involved in NGO's or charities since 1985, I immediately thought of questions that I would personally ask of any charity that I consider supporting.
1. What is the percentage of the total income that goes toward the actual mission that you are giving to? (100% is possible but 80% is considered acceptable)
2. Is the statement of the mission clearly stated and do you agree your gift is for this. (Remember, you can also request exactly what your gift is to be spent on)
3. A financial statement can be provided to you that is audited by a Certified Public Accountant.
5. Check the public records that it is a government registered charity. (Remember, anyone can set up a charity)
4. What are the management salaries for many of the top personal and are the salaries drawn from the charity income or from outside support? (It is possible that staff can raise their own support and not rely upon the organization)
5. Are the management salaries reasonable for those involved in a charity? (Reasonable private sector salaries or less, that is the question each donor must ask themselves.)
6. What expenses are provided for the top management and are the amounts clearly stated and shown in the financial statements. (Usually this is the most difficult aspect to analyze as it requires careful analysis, open records and in some cases first hand observations. You can usually tell a lot by who pays for the staff houses, cars, entertainment expenses, hotels and the airline classes for traveling (i.e. five star, or 1st class) and the luxuriousness of each.)
7. How much of 'todays' money is being set aside for future expansion or projects? (Do you want your gift to go towards an immediate need or some future 'possible' use?)
It just pays to know what you are giving to, whom you are giving to and the right questions to ask before you jump in. We've tried to do that with our own ministry. Remember, give wisely this year.
