Just because an agency or entity calls itself “non-profit” is not always a sign that your well intentioned contributions are going to a good cause.
“Nonprofit organizations perform some of the most vital work in the United States, often serving the needy and filling gaps where society does not, or cannot, deliver services or provide safety nets.
“The word ‘charity,’ often applied to such institutions, can have the ring of altruism and irreproachable motives. But nonprofits are some of the nation’s largest, most powerful organizations such as hospitals, foundations, universities and churches. Like any other set of institutions, they are susceptible to corruption, waste and abuse. Journalists should know that nonprofit groups are subject to government rules that regulate the activities, finances and operations that justify their ongoing receipt of tax-exempt, ‘501(c)(3)’ status — effectively, a government-endorsed subsidy. Further, many nonprofits depend on donations from the public, giving them a special obligation to allocate these collective resources efficiently and effectively and uphold the public’s trust, especially when money is designated to help vulnerable populations.”
“Often accountability stories begin with, and rely on, shoe-leather reporting and interviews with former employees or whistle blowers. But when collecting background material for a story, a key document to review is a ‘Form 990,’ which nonprofits must file with the IRS every year. This record, which is publicly available, can provide a strong, factual basis for understanding an organization and its operations. Here are some places to look when researching this kind of information:
- In August 2015, ProPublica updated its Nonprofit Explorer data to include filings through 2013.
- The Foundation Center also has a good database of 990s.
- GuideStar has long been a paid tool for many journalists seeking information on nonprofits.”
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