If you have a little extra change jingling in your pockets, now is the season to consider a donation to a reputable Michigan charity (including the Center for Michigan!).
A new guide from the Council of Michigan Foundations, Michigan Nonprofit Association, the United Way, and the Michigan Attorney General’s office offers quick guidelines for making sure your money goes to reputable nonprofit organizations.
Click here for the full guide. Or, here’s an excerpt of the kinds of questions to ask when choosing a charity…
What are the organization’s purposes and programs? All charities have a mission and provide specific charitable programs and services in order to serve that mission. This information should be prominently featured in all of the group’s fundraising appeals and match your goals as a donor.
How much of your donation will go towards programming rather than administrative and fundraising expenses? Charities use your donations not only to carry out their charitable programs, but also to pay for administrative costs and fundraising (which may include commissions to companies that solicit using telemarketing or direct mail). You have the right to ask exactly how your funds will be used. Although there is no magic percentage in terms of how much money an organization should spend on overhead, it is smart to ask a charity what percentage of your donation will directly support programming.
Is the donation tax deductible? Only donations to 501(c)(3) nonprofit organizations are deductible on the federal level. Make sure to ask if the organization has received this tax-exempt status from the IRS. For more information, visit www.irs.gov/charities.
Does the organization have measureable goals? Ask about the organization’s recent accomplishments and what its goals are for the next year or two. You want to make sure that the organization has a proven track record. Consider asking the organization, or visiting www.guidestar.org, to review the organization’s IRS Form 990 for the most recent tax years to learn more about the organization’s operations and finances. Visit or volunteer at a local charity to learn more about the effectiveness of their programs.
Is the organization licensed to solicit funds from the public? Under Michigan law, most charities must be licensed before they solicit funds. To find out if a charity is licensed, visit www.michigan.gov/ag and click on the Charities hotlink. If an organization is not listed or you would like more information, contact the Attorney General’s office at (517) 373-1152 or ct_email@michigan.gov to check up on the organization.
