Check Before You Give: Look Beyond the Numbers
Does the mission of this charitable organization match your personal values?
If you make charitable donations, the IRS has a simple but powerful message: “Check Before You Give.”
Most people hear that and think it means confirming whether an organization is legitimate, and that’s certainly part of it.
But if you stop there, you’re missing the bigger opportunity. The real value is in understanding what the organization does with its resources.
Start with the IRS Tool
The IRS provides a public database called Tax Exempt Organization Search (TEOS). This tool allows you to:
- Confirm that an organization is recognized as tax-exempt
- Verify that contributions are deductible
- Access filed Forms 990 or 990-EZ
Don’t Just Verify—Read the Story
When you pull up a nonprofit’s Form 990 or 990-EZ, you’re not just looking at compliance paperwork. You’re looking at a public-facing narrative of the organization.
Focus on:
- Mission Statement – What is the organization trying to accomplish?
- Program Accomplishments (Part III) – What did they actually do this year?
- Schedule O – Additional explanations and details
This is where you can see whether the organization aligns with your values.
Be Careful with “Overhead” Judgments
There’s a common misconception that a “good” charity must spend a certain percentage of its funds on programs versus administration.
That approach can be misleading.
Different types of organizations operate in different ways:
- Startup nonprofits may have higher administrative costs early on
- Advocacy organizations may not fit neatly into “program expense” categories
- Grantmaking organizations distribute funds rather than operate programs directly
There is no universal percentage that defines a “good” charity.
Instead, focus on clarity, consistency, and impact in their reporting.
Use Independent Sources for Additional Perspective
In addition to IRS data, several private organizations provide insights and summaries, including GuideStar (Candid), Charity Navigator, and ProPublica Nonprofit Explorer.
These platforms can help you:
- View multiple years of filings
- Compare organizations
- See how information is presented to the public
A Better Way to Give
Before you donate, take a few minutes to ask:
- Does this organization clearly explain what it does?
- Do its accomplishments match its mission?
- Does its reporting feel thoughtful and transparent?
Those answers will tell you far more than any single percentage can.
Final Thought
The IRS says “Check Before You Give.” That’s good advice—but don’t just check for legitimacy. Take the extra step and understand the story behind the organization. That’s how you give with confidence.
This article is for informational purposes only and should not be considered tax advice. Every situation is different. If you have questions about charitable giving or nonprofit reporting, contact GurelCPA directly for a free consultation.