Our nonprofit recently received an in depth questionnaire from a charity watchdog group that I never heard of, requesting very detailed information on the organization for “prospective donors” who may want to find out if we are a quality charity. I am reluctant to spend the time answering. Since the organization already has a quality rating through another group, is this kind of listing really necessary?
Obviously, you are not required to respond, but in general I agree it is important for charities to be open, transparent and accountable. The charity watchdogs help interpret charities to the public and, if they give you a good rating, may even help promote donations.
Having said that, however, some of the groups are better than others, and some have one-size-fits-all standards (some would say arbitrary standards) that give low or flunking grades based on criteria that, if imposed on certain organizations, would significantly impair their effectiveness. Such standards are often unrelated to the quality of the program.
Therefore, I would check the watchdog’s standards to see whether there is anything about your organization that would cause it to get a bad rating. If so, I probably would not respond. As the old saying goes, it is better to remain silent and let them think you are dumb than to open your mouth and prove it.
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It may not be a "watchdog" organization, it may be a philanthropic advisor collecting preliminary information for a client donor who wishes to remain anonymous. I've made these sorts of inquiries myself.
If something smells fishy, however, trust your instinct. Several years back, a charity client was approached in a similar manner. The contact was dangling a potential $2 million gift from this "donor." Only cell phone numbers were provided, and the "pre-application" used strange language and was poorly photocopied. The website was equally "off." To make a long story short, the FBI became involved in our case, posing as board directors. The scammers had been moving from city to city pulling the same stunt, which often ended with the charity's bank account being wiped out.
Trust your instincts and ask for bullet-proof credentials and references.
This is an excellent comment. The actual question identified the group asking the questions, which I described by type rather than by name, but this response suggests several others who may be interested in a charity's data.
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