How to Investigate Nonprofit Companies
Read the company’s website., Contact government agencies., Search the National Directory of Nonprofit Organizations., Search the Encyclopedia of Associations., Analyze an organization's annual reports.
Step-by-Step Guide
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Step 1: Read the company’s website.
Learning the basic facts about an organization is an important first step to conducting an accurate and thorough investigation.
You should begin your search by reading what the company writes about itself.
A nonprofit’s own website is a good place to start gathering information.
Nonprofit websites generally provide extensive background information on the charity and its programs, as well as financial summaries and tax filing information.
Contact the organization directly and request written information on its charitable activities and finances.
Reputable charities already have this type of information prepared and ready to send out. -
Step 2: Contact government agencies.
Secretaries of State, Departments of State, Attorney Generals, or Consumer Services Departments may have important information on a nonprofit organization.
Government agencies maintain information for nonprofits that registered to do business in the state, are required to register as a charity under state law, or became a legal entity, such as an LLC, in a particular state.
Many of these government agencies offer searchable databases for consumers to obtain information on registered business entities and/or nonprofits.
For a list of state-by-state searchable databases for corporations and secretary of state websites visit: http://www.coordinatedlegal.com/SecretaryOfState.html , The National Directory of Nonprofit Organizations (NDNO) provides information on nonprofits with annual incomes of at least $25,000.
You can usually find a copy of the NDNO at your local library.
By searching the NDNO you may be able to determine the following information:
The name, mailing address, and phone number (when available) of the company; The company’s IRS filing status, including the IRS nonprofit category.
The company’s employer identification number.
The company’s reported annual income as set forth on its IRS form
990.
You may also be able to search this database online if a library has a subscription to the company that manages the NDNO’s electronic database., The Encyclopedia of Associations provides detailed information on U.S. nonprofit organizations with a national scope.
You can usually find a copy of the Encyclopedia at your local library.
By searching the Encyclopedia you may be able to determine the following information:
The name and contact information for the organization.
Information about company contacts, members and staff.
Information about the company’s founding.
The approximate annual budget.
The number of regional, national and local groups affiliated with the company.
You may also be able to search this database online if a library has a subscription to the company that manages the Encyclopedia’s electronic database., Nonprofit annual reports highlight the organization's mission and impact, thank volunteers and supporters, and make case for donating to the organization.
Annual reports are one way an organization can be transparent and honest about what they have been doing the year before.
They will document what was accomplished, what they fell short on, and what lies ahead.
Most importantly, the annual report will include financial documents illustrating revenues and expenses.Read several years worth of reports to get an idea of how the organization's outlook has changed over time and the types of challenges they have faced. -
Step 3: Search the National Directory of Nonprofit Organizations.
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Step 4: Search the Encyclopedia of Associations.
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Step 5: Analyze an organization's annual reports.
Detailed Guide
Learning the basic facts about an organization is an important first step to conducting an accurate and thorough investigation.
You should begin your search by reading what the company writes about itself.
A nonprofit’s own website is a good place to start gathering information.
Nonprofit websites generally provide extensive background information on the charity and its programs, as well as financial summaries and tax filing information.
Contact the organization directly and request written information on its charitable activities and finances.
Reputable charities already have this type of information prepared and ready to send out.
Secretaries of State, Departments of State, Attorney Generals, or Consumer Services Departments may have important information on a nonprofit organization.
Government agencies maintain information for nonprofits that registered to do business in the state, are required to register as a charity under state law, or became a legal entity, such as an LLC, in a particular state.
Many of these government agencies offer searchable databases for consumers to obtain information on registered business entities and/or nonprofits.
For a list of state-by-state searchable databases for corporations and secretary of state websites visit: http://www.coordinatedlegal.com/SecretaryOfState.html , The National Directory of Nonprofit Organizations (NDNO) provides information on nonprofits with annual incomes of at least $25,000.
You can usually find a copy of the NDNO at your local library.
By searching the NDNO you may be able to determine the following information:
The name, mailing address, and phone number (when available) of the company; The company’s IRS filing status, including the IRS nonprofit category.
The company’s employer identification number.
The company’s reported annual income as set forth on its IRS form
990.
You may also be able to search this database online if a library has a subscription to the company that manages the NDNO’s electronic database., The Encyclopedia of Associations provides detailed information on U.S. nonprofit organizations with a national scope.
You can usually find a copy of the Encyclopedia at your local library.
By searching the Encyclopedia you may be able to determine the following information:
The name and contact information for the organization.
Information about company contacts, members and staff.
Information about the company’s founding.
The approximate annual budget.
The number of regional, national and local groups affiliated with the company.
You may also be able to search this database online if a library has a subscription to the company that manages the Encyclopedia’s electronic database., Nonprofit annual reports highlight the organization's mission and impact, thank volunteers and supporters, and make case for donating to the organization.
Annual reports are one way an organization can be transparent and honest about what they have been doing the year before.
They will document what was accomplished, what they fell short on, and what lies ahead.
Most importantly, the annual report will include financial documents illustrating revenues and expenses.Read several years worth of reports to get an idea of how the organization's outlook has changed over time and the types of challenges they have faced.
About the Author
Gary Lewis
Enthusiastic about teaching creative arts techniques through clear, step-by-step guides.
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