For a non-numbers guy, a whole class period spend talking math was surprisingly exhilarating. That's because we learned how to use numbers--in particular the numbers from charities' IRS Form 990--to evaluate how well they use the dollars they have to work with.
Most people don't know that every non-profit organization's tax return is a public document, and that it is a treasure trove of information for the intelligent, discerning philanthropist. Fortunately for participants in the Main Street Philanthropy program, we show them how to locate those returns and then which numbers to look for and how to crunch those numbers to evaluate just how many dollars are actually put to work and how many are spent paying officers, raising money, or on general overhead.
Every organization must spend some of its funds to operate and to solicit donations. It's only when those things get out of balance that there's a problem. So quantitative analysis is an important part of smart giving.
I was impressed at how quickly the class grasped the concepts and understood why it's important to run the numbers. I've also been impressed at how much and what they're learning, as evidenced by the very astute blogs they've been writing. They are an ideal group for this early application of the Main Street Philanthropy principles.
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