Some of these questions can be answered by looking at the organizations’ websites, while others require deeper engagement with the nonprofits and experts in the field. Remind clients that not all potential red flags are deal breakers. If something gives them pause, assess whether it is a result of a contained challenge, such an executive director in transition, or a more pervasive problem, such as a lack of program data or focus.
There is no such thing as the “right” charity
With so many charities out there, it is natural for you and your clients to feel overwhelmed. Keep in mind that that there is no such thing as making the “right” decision, but taking this strategic approach will help your clients give with maximum impact to the causes they are most passionate about. This can help you deepen client relationships and ultimately grow your practice.
Kim Laughton is president of Schwab Charitable, which administers the independent, nonprofit Schwab Charitable donor-advised fund.