by James Zipadelli

Created on: May 04, 2009

"Hello, would you like to donate to (X)? Your contribution will help us." Have you ever been approached by someone, or have you gotten a phone call from someone? Non-profits are a really important area for reporters to investigate because the public donates money in good faith to that organization, expecting the organization will do exactly as it advertises. While there are many reputable non-profit organizations, there are some that don't spend nearly as much on the people they claim to serve.

But wait a minute, the reporter thinks. How do I get information on a non-profit organization or charity?

Despite their status, there are ways to investigate non-profits. Every non-profit is required to submit what's called a 990 form to the IRS. This form shows the expenditures of the organization in the same way that an annual report shows for a publicly-traded company.

That doesn't mean that all non-profits are going to follow the law, though. They will treat the "green" reporter as if they don't know what they're talking about. How dare you come snoop on us, the organization's message is. We do good things for people, while you're just trying to dig up dirt and sully our reputation. If a non-profit organization refuses to give you a copy of their latest 990 form - or if you can't find it online - red flags should go up immediately.

Here are a couple of Web sites reporters can use to check up on non-profits. The first Web site is called Guidestar (www.guidestar.org. Reporters need to sign up for an account to use this service, but it's worth it. Guidestar.org has a database of over 1.8 million charities and non-profit organizations that are recognized by the IRS. The second Web site is called Charity Navigator (www.charitynavigator.org which has a different methodology than Guidestar. You can, for example, find out which 10 charities have the ten lowest-paid CEOs on their home page.

Here is one example of why covering non-profit organizations and charities is important. In February, the AP investigated the Army's largest charity, Army Emergency Relief, or AER, a charity that is supposed to help military families get back on solid financial ground. Instead, they propped up their own finances.

"Between 2003 and 2007 - as many military families dealt with long war deployments and increased numbers of home foreclosures - Army Emergency Relief grew into a $345 million behemoth. During those years, the charity packed away $117 million into its own reserves while spending just $64 million on direct aid, according to an AP analysis of its tax records.
Between 2003 and 2007 - as many military families dealt with long war deployments and increased numbers of home foreclosures - Army Emergency Relief grew into a $345 million behemoth. During those years, the charity packed away $117 million into its own reserves while spending just $64 million on direct aid, according to an AP analysis of its tax records."

The rest of the story is on MSNBC at http://www.msnbc.msn.com/id/29331853/.

One last piece of advice: Don't assume that all non-profit organizations are good - or bad. Reporters should report on them with the same diligence as any other story.

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