How to Perform Due Diligence When Making Gifts to Charitable Organizations
We often meet with clients who want to make gifts to charitable organizations. They almost always ask the following questions: AHow do I know if the charity is a good charity? How much money is going to the cause and how much is going to pay the executive board=s salary?@ If you have ever asked these questions, here is a convenient checklist that you can use to help determine which charity might be a good organization for you:
CHARITY REVIEW CHECKLIST
Verify the Organization and Research the Charity
– Confirm official website, EIN, and address.
– Ensure you have the correct entity (no duplicates or name confusion). Note if they use other business/trade names.
– Review mission statement, programs, and their impact (locally and globally).
– Check partnerships or local initiatives.
Ratings & Transparency
– Charity Navigator: Star rating (0B4), beacon scores (Accountability & Finance, Impact & Results, Leadership & Adaptability, Culture & Community). charitynavigator.org
– Candid (GuideStar): Seal of Transparency (Bronze, Silver, Gold, Platinum). candid.org
– BBB Wise Giving Alliance: Accreditation status (Meets / Does Not Meet Standards). give.org
– Review donor reviews on platforms such as greatnonprofits.org
Legal & Compliance Checks
– Search IRS.gov to verify tax-exempt status and income tax filings (Form 1023 and annual Form 990s).
– Check Sunbiz.org for Florida corporate filings and standing.
– Review local county court dockets for lawsuits or legal actions against the organization or its board members.
Doing your due diligence in advance will help you determine the best organization based on your preferences. If you have any questions regarding making charitable donations, feel free to contact one of the attorneys at Revis, Hervas & Goldberg, P.A. today.
