With Dec. 31 quickly approaching, many of us are considering or are being asked by our financial advisors to consider making a year-end charitable contribution to offset income and capital gains in this tax year. Charitable contributions made in haste, however, can often end up in the coffers of organizations where they won't have the greatest philanthropic impact possible. You are discouraged or barred from a site visit. Ask for an alternative means for you to observe the nonprofit's work personally.
Financial records are unavailable, unintelligible or generally in disarray.
Bells and whistles should go off for you if an organization is unable or unwilling to provide you with a clear picture in writing of its financial position. And be sure to check whether the information from last year's financial report matches the information in the charity's IRS Form 990 informational tax return. There's no written strategic or business plan for the organization. Without a road map leading from today's position to tomorrow's destination, it's awfully difficult to make the trip without wasting resources, including your financial contribution. The executive director discourages you from speaking with any board members, or a board member discourages you from speaking with an administrator.