Giving Guidelines and Priorities

Christ-centeredness is arguably our most important measurement. If a nonprofit says they are faith-based but in no way show it or explicitly state it, that is a big red flag. The foundation is looking for the following:

1. Christ is stated in the nonprofits mission/vision statements

2. Nonprofit brings more people to know Christ

3. Nonprofit helps foster a relationship with Christ for those who already believe

4. Nonprofit gives clear and explicit glory to Christ on social media, website, annual reports, etc.

5. Nonprofit has a partnership with other Christ-centered organizations

6. Nonprofit has options available to participate in developing/fostering a relationship with Christ (prayer, bible studies, chapel, church connections, etc.)

7. Nonprofit requires participation in Christ-centered activities

8. Nonprofit has Christ-centered staff/leadership

9. Nonprofit has a Statement of faith (posted online)

Financial health changes the most year-to-year because we gather updated financial statements as they come available (Form 990, profit/loss statements, audited financials, etc.). Ultimately, we want to see that the nonprofit is being a good steward of the donations received, that there hasn’t been any fraud or misuse of funds, and no significant reliance on government funding. With government reliance, our concern is that nonprofits stop sharing the gospel, are limited in how Christ-centered they can be, and mission drift due to pressure from the state and federal government. Factors we calculate that help us determine a score:

1. Program Expense ratio

2. Administrative Expense ratio

3. Fundraising Expense ratio

4. Fundraising Efficiency ratio

5. Program Expense Growth

6. Assets to Liabilities Ratio

7. Debt to Equity Ratio

8. Working Capital Ratio

9. Government Reliance ratio

10. Excess/Deficit at year end

11. Return on Investments

Whole Person Impact lets us see how a nonprofit is making an impact on the individuals served. We look at the program services offered and that helps us categorize programs into the following areas.

1. Spiritually (growing a relationship with Christ. examples: bible studies, prayer, church connections, spiritual counsel)

2. Physically (improving a person’s physical state. examples: food, shelter, clothing, health)

3. Mentally (improving mental health. examples: counseling, Christian environment, rehabilitation)

4. Educational (offering services to increase skill level that could benefit them in career, finances, or socially. examples: GED, continued education, job skills, life skills, parenting skills)

5. Socially (offering opportunities to build a community and support system. examples: mentorships, groups, events)

Leadership is our newest method of scoring and is consistently being re-evaluated. Questions we look to answer:

1. Who is on the nonprofits board of directors?

2. What expertise do they bring to the nonprofit (legal, financial, accounting, leadership, fundraising, pastoral, etc.)?

3. Board biographies that we can review (ideally this would be found on the website)

4. What does governance from the board of directors look like?

5. Formal succession planning for major leadership roles (executive dir., CEO, etc.)

6. Have there been any leadership changes within the last year and why?

7. Transparency with successes AND struggles/stressors

8. Knowledge of the organization from leadership (programmatically, financially, data/impact, direction of the nonprofit (goals), and needs)

9. Has there been lack of integrity or misuse of funds?

Information we are looking for:

1. Form 990s and audited financial statements available on the website

2. Annual reports / Impact reports available on the website

3. Independent board members

4. Board meeting documentation

5. Board members listed on website

6. Key staff listed on website