Progress Without Profit: Conduct research before donating money
A quick scroll through my Instagram feed reveals that social media is (luckily) more than just an outlet to showcase an outfit of the day or a delicious meal. In recent years, social media has transformed the way nonprofits raise money, making it easier than ever for a donor to find an organization and send money to a cause they support. With the click of a button, you can encourage hundreds of followers to donate to a nonprofit.
Although this ease of donating through social media allows for more money to flow into the nonprofit sector, it is by no means a flawless system. This newfound social media activism makes it easier for donors to hop on a trend or check a box without understanding how their money will be used. Instead, prior to donating to a nonprofit, people should do research and educate themselves to better understand the organization and impact of their donation.
In comparison to the millions spent by corporations or foundations, you may feel that your $10 donation to a local food bank is insignificant. In reality, the collective power of individual donors is what powers the nonprofit sector. In 2018, individual donations accounted for 68% of all charitable giving, with donations totaling $292.09 billion in the United States. The money you donate does in fact make a difference, making it all the more important you research how your money can have the greatest impact.
After the police killing of George Floyd, my Instagram feed was flooded with reposted pleas to donate to the Minnesota Freedom Fund, which purported to pay bail and bonds for people that can’t afford them. Donating to or posting about the Minnesota Freedom Fund became a way to show allegiance with the Black Lives Matter cause and within days the small nonprofit earned 300 times its annual budget with donations totaling $30 million.
Widespread outrage followed two weeks later when the Minnesota Freedom Fund disclosed that thus far they had only spent $200,000 of the $30 million dollars in new donations. This outrage stemmed from a lack of research on the part of donors, to no fault of the Minnesota Freedom Fund. Prior to the flood of donations, the Minnesota Freedom Fund was a small nonprofit with only one full-time employee. It did not have the infrastructure in place to deal with its budget growing exponentially — practically overnight — and needed time to scale. Instead of immediately assuming the worst after the fact, donors should have researched the organization beforehand to realize it would be difficult for them to handle such a large influx of donations. Not to mention, the $200,000 was spent to bail out all 40 people who were jailed as a result of the protests in the Twin Cities, which was the nonprofit’s stated mission in the first place.
The Minnesota Freedom Fund became a trending organization and despite there being plenty of other organizations people could also have donated to, it garnered a massive abundance of donations because people followed what their social media told them to do. This is not to say The Minnesota Freedom Fund is not an important organization. I admit I donated to them myself.
As valuable as the mission and work of the Minnesota Freedom Fund are, other organizations deeply involved with important racial and civil rights work may have been overlooked. The point is that we must become more diligent before clicking a button to follow the latest social media flash point.
People also donated to the Black Lives Matter Foundation without realizing it was different from the Black Lives Matter movement and some even donated to Venmo accounts associated with nonprofits that turned out to be fake.
These mistakes made by donors eager to support the Black Lives Matter movement are a result of the misinformation that is all too prevalent on social media. Social media users can take what they see online at face value without further consideration, especially when they have a strong desire to do good.
Paul Schervish, former director of the Center on Wealth and Philanthropy at Boston College, states that one should give to the moment rather than in the moment. Instead of feeling the urge to immediately show activism or support through a donation in a superficial way, take time to thoroughly understand the complexity of an issue and which nonprofits are best equipped to handle it. It is easy for people to check a box and feel that they are “woke” or an “activist” just by donating. In reality, effective donations require research and contemplation.
To be clear: Trying to make the world a better place through donating to the causes we believe in is an important and noble task. The point is that we should strive to do it effectively. Some simple steps to take to make an informed decision about where to donate include checking out sites such as Guide Star, Charity Navigator and Charity Watch to research the financial health, transparency and accountability of nonprofit organizations. It is also important to look at the organization’s website and ask yourself: Do they concisely state their mission? Is it clear how they use their donations? Do they offer evidence of impact? Take a look at the organization’s 990 tax form that outlines all the expenses of the nonprofit the year before to fully understand how your donation will be used.
Donations are essential to supporting the nonprofit sector and, when used wisely, are a vital vehicle for change. In order to maximize impact, do not treat donations as a trend or as an outlet for performative activism. Instead, do appropriate research so you understand where your money can go to make the biggest difference.
Sophie Roppe is a junior writing about nonprofit organizations and social justice. Her column, “Progress Without Profit,” runs every other Monday.