‘Tis the Gimme Season

I am sure you thought the political gimme season was over.  

Not so.

Unfortunately, the gimme season is overlapping with the Yuletide giving season.

Not for profits (NFP) increase their requests for donations when it’s the giving season.

Whether it’s a political gimme or a not-for-profit do your own research.

If someone is after your money, they will have a website.

 

  • Where does the money come from—their donor base? This will be in the Notes section of the financial statements.

  • Where does the money go—what services is the promise that is stated to donors?

  • Compare the organization’s administration costs with what they really spend on the services they are supposed to provide. They shouldn’t be upside down … meaning that more goes to administrative related costs vs to actual service provided to their “cause.” Charity Navigator is a good resource.

  • Are there a lot of small accounts that could (and should) be in one account?

Take time to read the organization’s complete financial statements. Don’t stop with the balance sheet and the profit loss statement.  Take time to read the notes to the financial statements.

You will be amazed at how much information is in a complete set of financial statements.

   Patricia Lane Williams, CPA has worked with thousands of men and women sounding the warnings. She is the author of the Amazon bestseller, Money: Get It. Save It. Grow It … Before Debt Steals It. It’s her first book in the Four Corners Prosperity series. Her website is www.PatWilliamsAuthor.com.