1. Background on the charity:
a. Charity purpose?
b. Founded when?
c. Based where?
d. No. of employees?
e. Website is?
2. What classification of the tax code does the entity claim its tax exemption?
3. Who performed the audit of the financial statements? What type of audit opinion was received? If other than unqualified, please provide explanation.
4. Identify each of the financial statements prepared and audited and which years are included?
5. Does the entity have any affiliated entities, particularly any for-profit entities, with which it engages in business transactions? Are there any concerns about these arrangements?
6. Using the financial statements, what amount was received as revenue? In what form was this revenue provided - list the two highest types and the associated dollar amounts?
7. Using the financial statements, what amount was presented for unrestricted net assets? What percentage of total net assets does this figure represent?
8. Using the financial statements, what amount was presented for investments? What percentage of total assets does this figure represent?
9. Using the financial statements, what types of program services are provided and list the total expenses associated with each?
10. Using the financial statements, what types of support services are provided and list the total expenses associated with each?
11. Describe the executive management structure. What are the corporate governance processes - how big is the board of directors and how often do they meet? Do they have an audit committee? Do they have an internal audit function? To whom does it report?
12. Calculate and explain the purpose of each of the 4 ratios below:
a. Total Net Assets - Restricted Net Assets - Fixed Assets / Average Monthly Expenses
b. Contributions / Fundraising Expense
c. Total fundraising, general & admin expense / Total Expenses
d. Revenue Source / Total Revenue
13. What conclusions do you draw from the ratio analysis that you performed? This should be an in-depth discussion that may draw on other resources.
14. Using Charity Navigator, determine its rating. What is the rating of the entity? What could be done to improve this ratings?
15. Provide comments regarding the effectiveness of this charity (what difference has it made in terms of outcomes). This should be an in-depth discussion that draws on other resources about the organization and how to evaluate charities.
16. Do you recommend that it receive tax-deductible donations and is deserving of its tax exemption? Why or why not?