Non-profits pay employees reasonable amounts but the remainder of their funds must be used for their particular purpose which was designed to further the public good.
But…This is not always the case! You can’t always believe -
“To raise and distribute funds for Blah…Blah…Blah as well as educate the general public on the importance of Blah…Blah…Blah.”
There are a quite a few unscrupulous organizations who either set-up foundations as:
1) a means of making money by using some cause as a means to pull the public’s heart strings;
2) or their intentions for a cause are genuine, but they use funds for personal use to purchase property etc., instead of putting the funds where they should go.
I can’t help but wonder how these people close their eyes at night when they have taken advantage of well meaning donors. But this is how unprincipled individuals live.
So Before you Donate - Get the Facts. Know with whom you are dealing!
A non-profit foundation must provide for public inspection, a copy of its returns or exemption status application to any individual who requests a copy.
It can be emailed as well as snail mailed, but must be provided within 30 days of a request.
Of course - you can also file a request from the IRS to inspect an organization's return, and/or status. You should have a list of Officers, directors etc., and key personnel- even if they claim not to be compensated.
Should the foundation not have records available with the IRS - due to a failure to file, or the organization is too new and is not required to file until the following year - "Let that be a sign Not to Donate" until there is some proof of good-standing, so to speak.
Once again…Before you Donate - Get the Facts. Know with whom you are dealing!
Out of Breck Waters World
