How do we know if the nonprofit I want to support is stable, especially in this time of Covid?
Ask Me Anything Summary
If you are considering making a major gift, there are a few simple things you can do to make sure that the nonprofit is ready to activate and use your money wisely. Ask for the current balance sheet (not the 990, which is two years old). Look at their profit and loss to see if they are barely making payroll, or not making it at all. Look to see if they have a line of credit and if they are really struggling. Decide if you want to bolster them and make sure that they survive. Or, rethink whether or not a major gift is really going to have the impact you want. Ask to see their business plan. If they don’t have a plan and are just barely focusing on the day to day, they may need to step back. You might decide to invest in helping them get a business plan, rather than in a program they think is needed, yet is not having an impact.
Before you invest any major gift, you should also see a current profit and loss statement, balance sheet and a business plan.
If you have a burning question about nonprofits, please reach out to us at Sharity. You can email me at info@Sharityglobal.com, contact us through the website, or message us through LinkedIn or Facebook.
