Last Wednesday I gave a presentation on how to choose a charity. I emphasized that donating money is like investing in an organization you need to do your homework.
My main points:
- Request audited financial statements from the charity.
- It is a red flag if the organization is not willing to provide audited financial statements
- Taught the audience how to calculate the key financial ratios of cash reserve, program ratio, and administrative ratio.
2. Ask how much board members donate to the organization.
3. Volunteer at the organization to access if actions align with your values.