David said,
Frankly, it’d also help with some tax deductions too
I’m not an accountant, but for every $1 you donate the net decrease in income tax liability will probably be well under 25 cents… so it’s not a “tax deduction” but a desire to help. Donating apparel is another thing and I’ll get to that in a bit.
Doug said,
I know you said you want something nationwide, but perhaps reconsider a bit and look local. Nationwide charities/nonprofits get all the press, and often most of the money. Too many spend too much on administrative costs (IMO), including some rather large salaries for the chief executive and other senior members.
But local nonprofits are doing great work in your back yard, and are always (or at least quite often) short of cash. No exorbitant salaries – in fact many have one or two paid people and the rest are volunteers. Your charity dollars can often go a lot further locally than they can nationally. And you get to see firsthand the good that your dollars do, instead of having to read about it in the annual report. FWIW.
I’m with Doug on this 100%. With a local NPO, your company can influence other local businesses and individuals to help support them, and often your employees will become engaged and support them financially and as volunteers. The goal (IMO) should be to get the most bang for your donated bucks.
Now the problem is how to find a good NPO. A good metric is how much of revenue is spent on actual programs. You want to look for over 75%. There are organizations that rate NPOs and they are a good starting point. I’ll give two examples because in my area there are two worthwhile local NPOs (I’ll call them charities “A” and “B”) and not both are rated on both of the following websites.
http://www.charitynavigator.org
They rate on a scale of 1-4 stars. They also report the percent of money spent on programs. They give charity “A” a 4 star rating and report that charity “A” spends 83.3% of revenue on programs. They don’t rate charity “B”.
http://www.GuideStar.org
They rate charities as no rating, bronze, silver, and gold. If you register (free) you can download any charity’s (in their database) IRS Form 990 for review. This site does not rate charity “A” but gives charity “B” a Gold rating. Charity “B” generates about 17% of their revenue from thrift stores, so it is hard to determine percent spent on programs because store employee wages are reported on the Form 990. As far as analyzing a Form 990, it is probably something for a good accountant to review for you. All the items sold in the thrift stores are donated by the community. Donations can only be deducted by the donors at the price the thrift store will be expected to sell it at, and this (apparel) will be in the realm of your company’s accountant. Also the salaries of the executive officers are pretty low… under $200K, considering they are running an operation with over $40 million a year in revenue.
IMO, Charity Navigator and GuideStar are really just good places to start your search.