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Monday, May 2, 2011

Philanthropy Criteria

I have decided to get a little bit away from our reading for this week and discuss some more about our Philanthropy project this semester. Although I thought all of the presentations were done very well, it really has come down to one major issue with me. In the end, we have decided not to give organizations that are successful and abides by all of the Charity Navigator components. Let me be clear that I have absolutely no problem with the direction we have taken, but do you believe others that wish to donate money have the same ideas that we do?

Donations are a major source of revenue for nonprofit agencies. Successful organizations routinely receive donations I would think. So if that is the case, how come we chose not to donate to some of the more successful organizations for our project? STAT and the Suicide Prevention & Crisis Center are also successful, but their financials tell us that they need this money. So, we're almost choosing to penalize an organization who has strong financial figures and in turn "doesn't need" our money.

Once again, I fully agree with the path we have chosen, so I am just playing devil's advocate. I also completely understand that donating $2,500-$3,000 doesn't do a thing for some of the more financially sound organizations, so we are making the right choice. However, this is one again a challenge and a fine line for nonprofits. If you are doing so well, does that mean you no longer need money donated? What are some of the strategies these organizations should take to continue to be successful, but also continue to advocate for more donations?

1 comment:

  1. Matt,
    I had this same thought last week in class. Groups kept selecting organizations, at least in part, because they “needed the money.” I was concerned about this as well. So, what do you do if you’re running a successful and financially sound organization? Then, I thought back to the Charity Navigator criteria and two questions popped into my head;

    (2.2) Provides evidence of demand for more than half of outputs

    (2.3) Comparison of evidenced demand to demand beyond capacity

    This situation provides a strong argument for organizations to be collecting, and able to provide, data that demonstrates these two things. If an organization is financially sound but can show that they are not providing services to everyone in need then, I would assume, they will be able to attract continued funding. Ironically, I have yet to evaluate an organization that provided this information.

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