Americans are generous people! I’ve worked in the financial services industry for more than 30 years, and most of those years I have worked with both charities and the individuals who give to them. In 2025, total charitable giving in the United States rose 5.7% to a record $617.2 billion, eclipsing the $600 billion mark for the first time[1]. Americans support charity, and charities provide a unique benefit to citizens of this great country and of many others around the world. Since its inception in 1991, our firm has had the privilege of serving the Christian nonprofit community. Many of our clients, such as World Vision, Compassion International, Samaritan’s Purse, and Food for the Hungry[2], are working to make the world a better place and offer the light of Christ to those in the midst of difficult circumstances.

Given the abundance of choices, donors often struggle to determine which organizations to support and which causes align with their own convictions. Over the years, as a donor, investment consultant, and nonprofit board member, I have watched as organizations struggle to raise the funds they need while donors struggle to determine which organizations are truly “worthy” of their hard-earned dollars. I recently finished writing a book on donor engagement, organizational worthiness, and fundraising. That book, however, is written primarily from the perspective of the nonprofit organization. In this article, I want to highlight three areas that any donor should evaluate before giving to a nonprofit organization.

1. A Shared Passion for the Vision
I believe the most important criterion for giving is shared vision. Before committing funds to an organization, you want to be sure that the vision of its leadership aligns with your passion. Vision is an intrinsic motivator for those working at the charity. It is also a litmus test for any donor. If a charity does not have a clearly articulated vision and a plan to reach it, then regardless of the funding it secures, the outcome will likely prove disappointing. In our firm, we often refer to the mission of an organization as the plan or roadmap required to reach the vision. Donors should first evaluate the vision for alignment with their own convictions and then evaluate the organization to see whether it is actually executing on its mission to reach the stated vision.

2. Financial Stewardship
Step two in assessing the “worthiness” of a charity is to evaluate its financial health and reporting. This is not as difficult as it may sound. Most tax-exempt organizations in the United States are required to file Form 990 with the IRS. Churches and certain religious organizations are exempt from that requirement, though many publish audited financials voluntarily. This form outlines the organization’s assets and liabilities, how funds are spent, and who its most highly compensated individuals are. Beyond the Form 990 or another basic financial disclosure, such as an audit, most well-run charities also publish an annual report. This report should allow the prospective donor to evaluate the organization’s financial well-being and to assess how funds have been used to fulfill its mission and achieve its vision.

3. Donor Engagement
Finally, a donor can tell a great deal about the leadership of an organization by how it engages its donors. Donors are more than just an ATM! Great nonprofit organizations recognize that donors have the capacity to become champions of the mission. They work hard to include them in the vision, they consistently demonstrate solid financial stewardship, and they go to great lengths to build strong interpersonal relationships with them. Worthy organizations understand that their vision can be achieved only through a vibrant partnership with donors who have fully bought into it. Ultimately, they know that the donor is the true “hero” of the giving story, and they work to build relationships with those heroes by inviting them into the mission and partnering with them to fulfill the vision.

[1]Giving USA 2026: The Annual Report on Philanthropy for the Year 2025 (Giving USA Foundation, 2026), researched and written by the Indiana University Lilly Family School of Philanthropy. Total giving rose 5.7% in current dollars (3.0% adjusted for inflation) to an estimated $617.20 billion.
[2]The clients listed were selected based on business structure and not on the basis of performance. Inclusion on this list does not constitute an endorsement by any client of our advisory services.

 

__________________

Bryan Taylor, CFA

Chief Executive & Investment Officer

Cornerstone Management, Inc.

 

3327 Satellite Blvd, Suite 400

Duluth, GA  30096

770-449-7799

bryan@cornerstonemgt.net

www.cornerstonemgt.net