Friday, February 20, 2009

5 Ways to Check a Charity

Kiplinger’s Personal Finance Magazine recently published an article entitled “Five Ways to Check a Charity”. With the challenging economic times and an increasing number of people in need, it’s important for donors to have a high degree of comfort that the nonprofit organizations they support are going to be excellent stewards of their donated dollars. Read on to see how Aidmatrix stacks up on each point:

1.“Look at Spending Priorities – Aim for Organizations that spend at least 75% of their programs on budget.” Aidmatrix well exceeds this guideline, spending a staggering 97% of income on domestic and international programs to deliver humanitarian relief through technology.

2.“Evaluate Accountability – Be sure the group has a well-defined mission and the organizational structure to support it.” Aidmatrix’s mission is to get the right aid to the right people at the right time. More than 35,000 leading corporate, nonprofit and government partners leverage our solutions to mobilize more than $1.5 billion in aid annually, worldwide. We were also included in the Better Business Bureau’s Charity Seal Program for meeting the standards of Charity Accountability. Read more.

3.“Beware Red Ink – Charities must file a Form 990 with the IRS.” Aidmatrix avoids red ink – our annual expenses do not exceed annual revenue. You can view Aidmatrix’s 990 here.

4.“Gauge the cushion – A charity can better withstand hard times if it has 6 month’s to a year’s worth of working capital.” Aidmatrix is consistently building new relationships with corporate, government and NGO partners who will help bring efficient humanitarian aid to those in need, which makes us well-positioned to withstand challenging economic environments. Aidmatrix is in keeping with the Kiplinger article’s savings standard by having adequate cash on hand at all times.

5.“Review the Charity’s Annual Report – Look for the word ‘unqualified’ in the auditor’s note, which indicates that the auditor has signed off on the charity’s finances without reservation.” The word “unqualified” appears in Aidmatrix’s 2007 Annual Auditors’ Report in the Summary of Auditors’ Results Section, Page 18, bullet 1. You can view Aidmatrix’s Annual Report here.

1 comment:

  1. This article should be cut and pasted into a Word document or forwarded to everyone that you would like to talk to about Aidmatrix. Every board member and Governor's Advisory Board Member should get this out to everyone they believe would like to support a well-run organization like Aidmatrix. Great job!

    Trent Humphries