Top Questions to Ask When Evaluating Nonprofits 

by Jannah Yutkovitz, Ed.D

Senior Director of Philanthropic Impact, The Jewish Community Foundation

Top Questions to Ask When Evaluating Nonprofits

Giving to nonprofits is personal, often born of a passion for a cause and a deep conviction to be part of critical work. But finding an organization with a worthy mission is only the start of the giving process.  

To ensure your gift has the intended and greatest impact possible, you will need to do some research into your selected nonprofit’s values, strategies, and operations. Below is a list of guiding questions to draw from when evaluating whether a nonprofit is a good fit for your support. 

Start with the Basics 

1. Verify that the nonprofit is in current possession of 501(c)(3) status, or has a certified fiscal sponsor through an online tool such as Candid (formerly known as Guidestar) or Charity Navigator. If a nonprofit is already in the Jewish Community Foundation’s database, it means that this portion of the diligence has already been completed for you.
2. Look at the organization’s mission and values and determine if they are in line with you or your family’s identified values and giving strategy. If the organization completes its mission, does it bring us closer to the future you wish to see? Does the organization “walk its talk” by cultivating a positive work environment and putting its values into action internally and externally? 
3. Look at recent outcomes. Make sure you know who the organization’s primary stakeholders are and how they measure their impact. This information is often available online through an organization’s annual report, but you may need to reach out directly to early stage or smaller organizations. You can also check for an organization’s recent media mentions, news stories, and other qualitative stories of impact on their website.  

Dig Deeper  

1. If you are making a large gift ($5k or more), review the financial information of the organization. Look at their 990, their most recent financial audit, or request a copy of their budget if the organization is in its first few years. Ensure that you are comfortable with the organization’s 3-5 year plan for growth, programmatic implementation, or innovation.  
2. Determine the size of the gift you are hoping to make and the level of risk you are comfortable with as a donor. What percentage of the organization’s budget will your gift account for? Will you be considered an anchor funder (between 20-30% of the organization’s annual budget)? A major gift? A small donation?  
3. Look at other funders and supporters of the organization. Do they share your values? How long have they been supporting the organization? Do you have any personal connections to other funders? 
4. Look at the board of directors. How large is the board? Does it contain the breadth of expertise needed to run an effective organization? If you are considering joining the board, reach out to ask a current board member about their board experience. 
5. If you are planning to make a large gift, consider how you will communicate with the organization’s leadership if this is intended to be a onetime gift, or will continue over multiple years. Be transparent with the organization about your intentions and the likelihood of renewal. Have a conversation with the leader about whether your gift can be used as unrestricted operating dollars or restricted to a particular program or purpose. It is important that you discuss your charitable giving plan with your wealth, legal, and tax advisor if you are planning a multi-year commitment. 
6. If you are looking to make an anonymous gift, reach out to us at the Foundation to determine how you might gather the diligence you need, without sharing your identity with the organization. 

photo courtesy of Avodah

Beyond the Dollars 

1. Ask the leader of the organization how you might provide support beyond the financial gift. Do they need connections to other funders? Access to conferences or events? Use of office space? Board leadership? Hands on volunteers?  
2. If appropriate, conduct a site visit to see programming or operation in action. 
3. Strive to adopt a posture of humility and respect for a leader’s expertise as you engage with one another and establish a working relationship. 

Understanding Impact 

1. Ask how and when the organization shares outcomes with its funders and supporters. If you have concerns about the transparency of an organization, it may not be the right time or fit for a gift.  
2. Right size reporting requirements. Consider the size of your gift in relation to the organization’s overall budget and expenses. It is important that donors develop a sense of trust with an organization but also not demand too much in terms of reporting when staff sizes and budgets are small. Keep in mind the best way a staff member can use their time is by carrying out the charitable purpose of the organization.  
3. Support the organization by being a champion and validator of their impact in private and public spaces. 

For questions on any part of the process, or to discuss your family’s giving strategy, please contact foundation@shalomdc.org.