What Donors Can Learn from Central Asia Institute's Recent Challenges

I had worked in nonprofit development for three year and helped to raise hundreds of thousands of dollars, when a perspective donor answered my ask with a request to see a litany of financial documents. At first I was shocked, defensive even, though I had nothing to hide. I covered my surprise quickly and promised to deliver the documents.

Years later that moment stands out above all of the solicitations which were honored in the moment and without question. This donor simply asked what any investor would ask, to ensure his/her funds were being directed to a transparent, accountable and genuine place.

In the face of the accusations against Greg Mortenson and The Central Asia institute, I keep coming back to wrestle with multiple layers of institutional failure leading up to this point.

Jon Krakuer is taking on the credibility of Mortenson's books. I'll be honest, I am not terribly interested in this piece of the story. CIA and Mortenson do great work in education and bridging cultural divides, period. If pieces of the stories are condensed, stretched or omitted so be it.

Fellow nonprofit consultant and friend, Janet Bergman, addressed the organization's clear and blatant disregard for basic best practices, adhered to by organizations large and small across the country, in her recent blog post.

I want to empower and challenge the philanthropic audience, no matter what size gift you are making, ask questions, second but arguably equal to the board of directors, you are the people who keep these organizations alive.

Knowing what to ask for may be half the battle....

The financial statements for every nonprofit organization are public record.
Be skeptical if you ask to see information and are not provided with it.
Here are a list of ways your can sure your charitable gifts are ending up where you expect.

1) Check on the organization's public financial records

GuideStar's Mission: To revolutionize philanthropy by providing information that advances transparency, enables users to make better decisions, and encourages charitable giving.

2) Request a copy of the current board of directors

Industry standard suggestions a minimum of five board voting board members

3) Ask for additional financial materials

Operating and program budgets, as well as current financial statements will not always be available online but you have a right to ask for them. It is standard practice to include these documents with grants proposals., so it should be no trouble for any organization to provide them to you.

4) Ask for a detailed report on how your gift was spent


5) Use your intuition

If something about the organization strikes you as off, ask about it. Organization's with nothing to hide will have an explanation and might even be happy you asked.

Option two if something seems amiss, call the attorney general's office in the state where the organization operates.
Ask for the office of charitable trusts. You can ask your questions or file a concern with their office.