Ask three questions before you sign that donation slip

As the financial year comes to an end, there is always that last-minute rush to find just the right investment, or tax-saving scheme. For many of us, this is also a time when we issue our yearly gift cheques and charitable patronage. But selecting the right charity can be hard work.

While the concept of charitable giving is not new in India, the desire to change lives, transform a situation and the confirmation that, as a donor, we are part of the process is slowly growing. Giving towards building a better country is another new concept one that is increasingly favoured by the newer generation of earners. This new, savvy and knowledgeable giver wants to invest in a cause, and get involved.

In response, charities have stepped up to the plate, so to speak. Today there are detailed websites and communication outreach activities that seek out donors rather than wait for donors to come to them. Factsheets and figures that are comprehensible at a glance are becoming de rigueur.

And for the more involved benefactors, non-profits invite you to follow (and track) their activities via Facebook and Twitter . But like most media-savvy and chronically cynical urbanites today, we are well aware that websites can be deceptive, communication can be hyped and figures managed. So how do you find non-profit that deserves your hard earned money?

The answer is to ask three simple questions: What does the organisation do? How do they do it? How do they know if they are making a difference in the long run? In some ways, thats about all you need. The answers to these three questions help you know if your money is actually going towards creating lasting change. And if youre not suitably convinced by the answers, you should probably look at alternative charities and non-profits.

Wha! t do the y do?: A good answer to this question will not only talk about the organisations goals, but will also describe what they do, the programmes or approaches taken and some key impact on their target group that they have achieved. Visit the organisation and ask them a few questions face to face, or over the telephone if you are strapped for time. Most importantly, find out if your money is going towards short-term charity, where the benefactor will continue to be in need after your contribution runs out, or if your money will help to change their lives in a more permanent manner.

How do they do it?: How does the non-profit provide the services they claim to provide? How does their service differ from similar organisations? How do they channel their funds? Any high-performing non-profit will have processes in place to successfully carry out their programmes. The answer to this question doesnt need to come in the form of a comprehensive spreadsheet or a qualitative report. It could just be a clear, concise explanation of how projects are implemented. A solid non-profit should be able to speak convincingly about their own processes and efforts.

are they making an impact?: How is the performance measured? What are the parameters by which they set their successes? Non-profits need to track not only their financial transactions but also the social results that their programmes achieve. Stringent measures of performance indicate an efficient approach to development work. How do they track their progress, how do they evaluate their performance these are key insights into an organisational ethos which, will ultimately give you a clear indication of whether you should donate to them.

I would like to point out here that social change and development cannot be measured in isolation or in terms of growth rates and timelines. They can rarely be defined in totality the parameters are complex and the variables er! ratic. K eep that in mind while evaluating an organisations progress or success. Find out where they have started from before you judge if they have come far enough.

In a world where most people do little or no research before donating, a big positive shift towards accountability will occur if donors began to spend a day or two figuring out the answers to these three questions before making a donation .

(Puja Marwaha is CEO, CRY India)

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