Please give, but always give wisely

This is the time of year when many of us are taking stock and making decisions about charitable giving. In fact, the average person makes almost 25 percent of their annual donations between Thanksgiving and New Year’s, according to Center on Philanthropy.

In December, parents are teaching children about generosity, businesses are making decisions related to taxes, and volunteers are arranging food drives and hosting benefits. With so many opportunities, how do we decide which causes to support? How do we make sure our donation to a particular nonprofit is a good choice? Some straightforward and common sense measures can be taken so that our giving not only comes from the heart, but is also informed, wise, and meets our philanthropic intent.

First, it is important to be clear with ourselves about why we’re giving. Feeding the hungry, supporting an alma mater, expressing our faith, responding to a colleague’s appeal, or reducing taxes are all valid reasons to give, and they are not mutually exclusive. Clarity about our purpose in making a gift will make the rest of our philanthropic decisions easier.

An important aspect of charitable giving — especially during the holidays when so many requests are made — is to know about the nonprofit before making a donation. Regardless of the extent of one’s personal relationship with an organization, there are steps that can be taken to assure donations are well-placed.

Most charitable nonprofits recognize that accountability and transparency are the currency of trust and they work hard to provide information to their partners and donors. Annual reports, financial reports, a board of directors roster, and mission and evidence of impact are often found on a nonprofit’s website. If not, a phone call to the nonprofit will, in most cases, be greeted with open conversation and answers to questions. The key factors that impact nonprofit performance are transparency, governance, leadership and results, and nonprofits expect donors to ask questions related to these areas. CharityNavigator.org has a list of suggested questions to ask when considering a gift.

In addition to the organization’s website, another source of readily available information for almost all nonprofits is the annual 990 report. With the exception of churches, most tax-exempt organizations are required to file the annual IRS tax return. Also, 990s are, by law, open to the public and can be viewed at GuideStar.org. GuideStar is an organization that provides, among other things, information in order to increase transparency, good decision making and charitable giving. GuideStar is easy to navigate. Setting up an account is simple, free, and donors can type any nonprofit name into the search field to find the nonprofit’s records. With just a few exceptions — the annual 990 return can be found.

By reviewing the organization’s 990 — which has several versions depending on the organization’s budget — donors can verify a nonprofit’s legitimacy and determine if their gifts to a particular nonprofit will be deductible. For itemizers, this is important. Though the IRS recognizes 29 different categories of tax exempt organizations, with few exceptions only those donations made to a 501 (c)(3) — or charitable nonprofit — are  tax deductible. The 990 also has information about organization’s mission, programs, policies, compensation, and finances.

There are 198 Kalispell nonprofits (not including churches) that are eligible for tax-deductible contributions. These, along with many nonprofits in smaller neighboring towns, play a unique role in the Flathead, reflecting the values, highest wishes and will of citizens in this part of Montana. Nonprofits respond to societal needs in a way that business does not and government cannot. Throughout our state, nonprofits are developing trails, protecting rights, creating theatre, teaching children, combating violence, making music and healing the sick. They are mission-driven libraries, museums, schools, churches, community halls, shelters, swimming pools, and 4-H clubs. We cannot and don’t want to imagine our communities without them, and therefore we give.

Giving from the heart is deeply meaningful and ultimately satisfying. Giving generously is a viable way to pursue and preserve a civil society. Giving wisely safeguards our intent as donors and enables us to partner with nonprofit organizations to realize a shared vision and create vibrant communities. This December, let’s give generously, wisely, and meaningfully.

Moore is executive director of the Montana Nonprofit Association, which represents more than 650 charitable nonprofits. For more information, visit www.mtnonprofit.org.