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How To Determine A Charity's Financial Accountability

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First Posted: 05/07/11 02:07 PM ET Updated: 07/07/11 06:12 AM ET

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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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 Instit...
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 Instit...
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Karma2U
Blessed are the Peacemakers
12:32 AM on 05/24/2011
I prefer to give to my local homeless shelters and my local animal shelter. Even when we have no money - each day we share the golden rule.
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bobWal
08:54 PM on 05/07/2011
Salvation Army gets my charity money. Stays local,no giant salaries, no private jet travel. No flash-just hope and feeding thousands seven days a week.