When you’re making a major donation towards an institution or organization as a business, it’s more than just a financial gift. It reflects on the values of the brand, and, needless to say, when it turns out that the organization may not have the best track record publicly, or with using donated funds in particular, it has the opposite effect on your brand than the one you want. If you plan to use philanthropy as a business tool, it’s crucial to look closer at where your money is going first.
Start With Public Records Searches
First of all, you should make sure that you get a good overview of how the organization is perceived by the public. Take a look at their legal name, leadership, registered address, and affiliated entities to make sure that it’s a legit organization, and that it’s active and operating under the name that it presents to donors. You can also see if the leadership within the organization has any history of misuse of funds or other lawsuits that could suggest that your money might not be in the best hands. If an organisation has changed names often, has unclear leadership, or appears in repeated legal disputes, donors should slow down and ask more questions before giving.
Look Into Past Legal Troubles And Controversies
Not all of the controversy around organizations is going to be related to how they handle donations. Other scandals or stories of operations inside could show that they’re less aligned with your values than you might like. The worst of these are abuse scandals, which are particularly prevalent in some religious institutions, for instance. One bad apple doesn’t always spoil the organization, but you can look up records on the matter, like the Father John Allen Robinson allegations, to see how the organization handled those. Otherwise, it’s not impossible that your brand could become associated with the worst excesses of those organizations and people who have been members of them in the past.
Review Charity Disclosures
If you’re donating to an organization that is operating as a legal charity, then they should have disclosures that can give you a much clearer idea of how, exactly, they use the money. This can include annual reports, financial statements, tax filings, and a thorough accounting of the expenses of their projects. A trustworthy organisation should be able to explain how donations are used and who is responsible for financial oversight. However, you don’t have to (and shouldn’t) always take the word of the organization itself as the complete truth. There are websites like Charity Watch that provide detailed accounts on how well those charities allocate their funds to their stated purposes, amongst other factors. That way, you can feel like you’re doing real good in the world, instead of simply making a PR move.
The final decision of where you donate your money is yours, in the end. However, the tips above can ensure that your donation is able to do real good, and to help you ensure that your brand isn’t negatively impacted in the process.
