IMPACT

How To Determine A Charity's Financial Accountability

05/07/2011 01:07 pm ET | Updated Jul 07, 2011

After Greg Mortenson's "three cups" of financial disaster, donors the world over are looking for ways to find the destination of their donations.

Daniel Borochoff, president of the American Institute of Philanthropy, told NPR that determining a charity's financial accountability is tough, but not impossible. He mentioned a few pointers, such as evaluating a charity's board of directors and employee turnaround. But the most telling sign for donors to look for is the extent they explain what they do.

"So as a donor, you've got to find out what is the charity's program, because they're not clear about it," he said.

Organizations like Charity Navigator can provide some helpful insight, but even its CEO told NPR that relying on statistics alone can't accurately assess a charity's quality.

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