The Nonprofit FAQ
| What are the 'Top Forty' Charitable Organizations in the US? |
The "nonprofit sector" in the United States is huge. It includes well over one million "recognized" organizations. In addition, there are countless other groups that work to accomplish some purpose that attracts the energies, and often the financial support, of people who share enthusiasm for the cause. These less visible organizations are truly impossible to count. They form, collapse, merge, shrink and grow all the time. Much that is good is accomplished by people working together in all these ways. Some of what is done is probably foolish – or at least appears so to those who have not yet joined the cause. Nonprofits range in size from the Teachers Insurance and Annuity Association (http://www.tiaa-cref.org/">TIAA-CREF) to your neighborhood block-picnic planning committee. Among this huge collection of organizations and groups, there are a tiny few that are operated not for the public good but to serve some private, sometimes criminal, end.
Further, of course, there are many nonprofits engaged in serving parallel, complementary, and overlapping goals. Some people look at that situation and see duplication and waste. Others see a healthy variety of approaches and the benefits of local control.
In this situation, it is not surprising that donors and policy makers often wish for a simple way to identify the "top 40" – a list of organizations that could serve all community needs and do so in a way that is completely deserving of public trust. A little thought will make clear, though, how unlikely it is that any such list could ever be constructed.
The best substitute is caution.
If you have been asked for a donation by an organization you don't know much about, the first thing to do is take your own time to make a decision. Do not respond immediately. Do not (ever!) give cash to a stranger at your door or your credit card number to a stranger on the phone. A few days spent thinking it over and researching the organization will not make any significant difference to the charity, but they can make a really important difference to your peace of mind.
(Note: If the solicitor argues with you about a delay, it almost certainly means that he or she is being compensated with a percentage of the amount raised. Naturally, they don't like the thought of losing the commission. But your interest is in supporting the organization, not in helping the solicitor meet a quota. Just be firm and tell them you will be back in touch if you decide to make a gift.)
There are a couple of good resources online that can help you learn about the organization that asked for your help. Philanthropic Research, Inc., operates the http://www.guidestar.org/">Guidestar website, which lists all the charitable organizations recognized by the Internal Revenue Service and provides a good deal of supplemental information about many of them. If you can't find the organization asking for your help at Guidestar, extra caution is definitely in order.
(Note: Guidestar uses official government records supplemented, in some cases, by information provided by the listed organizations themselves. That means that a good deal of time may have passed since the Guidestar information about a specific organization was compiled. If what you find is troublingly out of date, ask the organization directly to give you current information that updates what you can find out online. And if the organization isn't listed on Guidestar at all, but you still are inclined to support it, ask for a photocopy of the "IRS determination letter" notifying it that it has been recognized as a public charity. If they can't show you that letter, you will not be able to deduct your donation on your income taxes, and there may be more things than that to worry about. This is a situation when even the most generous donor needs to be very very cautious.)
Another good source for online information is Action Without Borders, which operates the http://www.idealist.org">Idealist website. (This Nonprofit FAQ is another service Action Without Borders). You can search for organizations that serve the causes you are interested in and in the communities you care about. Not every charitable organization is listed on this site; you can, though, learn a lot about the ones that are, and search for others that appeal to your generosity and concerns.
For those who are interested in learning more about very large organizations, The Nonprofit Times compiles the "NPT 100" annually. To be included, an organization must raise at least 10% of its revenues from donations (so the largest nonprofit, TIAA-CREF, is not in this list). The The Nonprofit Times' article calls attention to some highlights of the finances of these large organizations. There's also a table showing all the assembled financial data. The "NPT 100" for 2000 was published in the November issue and online at http://www.nptimes.com/Nov00/sr.html">http://www.nptimes.com/Nov00/sr.html">http://www.nptimes.com/Nov00/sr.html. Other lists and rankings of nonprofits are indexed by Gary Price at http://gwis2.circ.gwu.edu/~gprice/listof.htm">http://gwis2.circ.gwu.edu/~gprice/listof.htm (Look for under 'Foundations/Nonprofits' and click on that internal link.)
Whether your preferred charities are large or small, national or local, it's perfectly reasonable to be uncertain about how much to give, and which to give to. Thoughtful advisors suggest that one way to deal with that uncertainty is to make up your own "top 40" ("top 5" or "top 100"). Collect information about organizations that match your concerns and interests, look for places to give where your gift will make a real difference to a cause you care about, and put together a plan for your personal philanthropy in advance. Then you have something to say to a stranger who approaches you for a gift to an organization you've never heard of. Just answer, "Thank you for letting me know about this opportunity to give. I will consider it when I do my planning for next year. Meanwhile, please do not waste the money you can use on your good cause by asking me again."
Thank you for your interest, and for supporting the important work done by your personal "top" charities, however many there are.
Putnam Barber |