Donate-To-A-Nonprofit with Good Financial Management
How to choose a nonprofit to support?
As a non-profit organization undertakes a fund raising campaign, the cash balances should be managed to provide reasonable returns with capital preservation the key component. Short-term money management advice should be provided, based on both the risk and return profile of the nonprofit as well as the horizon of the funds. The wealth management company should be independent custodians who are used to both holding the securities of the organization and being the clearing house for all trades. The wealth management company custodian should provide the relevant accounting of performance and value. Be proactive in checking the monthly statements and asking questions.
Most states require nonprofits to be in compliance with their charitable giving or donor solicitation regulations. It is important for the nonprofit organization to be responsible to procure a nonprofit’s auditor and to coordinate tax reporting to the state and federal tax agency and pertinent regulatory agency such as the Attorney General. The 990 is most often the minimum financial record required by a government entity. Therefore, make sure the organization is timely in filing the 990 each year.
Remember that the more the nonprofit provides as avenues to learn about the organization and have the donors know the organization, the more likely the donor will give.
