Sunday 7 April 2013

The Importance of Numbers

     As I have learned, it's not enough to pick an organization based on their mission statement alone. Much to my chagrin, in order to know exactly how effective an organization is, there's math involved. Of course, it is very important that this math is done to make sure that your money isn't being wasted. Each charitable group must file an IRS Form 990 as part of their tax returns which shows how much income they made, how much of it was used towards their cause, and the expenses used to keep the organization functional. Obviously, if they spend more than they make, then you better start finding alternative groups to give your money to. After looking at the different 990s from various organizations, it's not actually as hard as originally thought, especially when you have a guidebook and a calculator. I have been looking at two foster-care organizations for children and have found that, though their aims and programs might be slightly different, they both make and spend about the same amount of money, which I take as a good sign. As I delve deeper into the realm of tax returns, we shall see if other organizations do as well...

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