It is a generally accepted rule that if a nonprofit organization spends 80% or more of every dollar raised on the programs, services, or products it provides to its constituents, that the organization is probably well-managed and a good choice for donations. How does your organization stack up?

Donors are always wise to research the nonprofit organizations that are asking for donations, and when there are high-profile cases of organizations not meeting the standard, such as the recent controversy over Yele Haiti, donors will be even more vigilant about investigating the financial performance of nonprofits. When you are starting a new nonprofit, transparency in financial management will be especially important in attracting new donors. Be sure you are complying with your state’s regulations for registration and disclosure.

Starting a Nonprofit? Start Here. Go Far. LaunchX.com