Asking Tough Questions of Nonprofits Seeking Donor Support for Those Needing the Basics to Live

LENOIR, N.C. – There is no disputing that we are living in tough times. Indeed, in my 70 years of living, these are indisputably the most economically challenging times that I’ve ever witnessed.

As a result, the need for charitable giving has never been higher. Nonprofit charitable organizations are in desperate need of cash and the basic necessities to provide their clients with the basics of affordable and healthy living.

The minimum wage in North Carolina and the United States is a mere $7.25 per hour. For those fortunate enough to work a full 40-hour week, that is just $290 a week on which to live. That is $15,080 a year if one works every week of the year. That is less than half of the federal poverty level for a family of four, which is $33,000.

The number of homeless people continues to increase in our town and across the nation. Families struggle to find affordable housing. The cost of filling up the gas tank in our cars is astronomical. Food prices are skyrocketing. Food and healthcare deserts are on the rise; many towns simply don’t have decent grocery stores or medical facilities. The rise of “dollar stores” points to a growing population that are doing all they can to cobble together enough money to buy diapers and feed their children.

Meanwhile, the minimum wage in North Carolina and the United States is a mere $7.25 per hour. For those fortunate enough to work a full 40-hour week, that is just $290 a week on which to live. That is $15,080 a year if one works every week of the year. That is less than half of the federal poverty level for a family of four, which is $33,000. Many people don’t have full time jobs, and so are living on less.

The average rent for an apartment or home in North Carolina is at minimum $1,100 a month; it is usually higher. How does one buy food or clothing when rent is at least $13,200 a year – 88 percent of a full-time job on a minimum wage?

The answer? They can’t.

That is why those who can afford to help those in need must be informed about the charitable organizations they support. In short, donors must be confident that charitable organizations are using every penny wisely and being transparent in how they do it.

That is why we have added a Charitable Advocacy page to our publication and to our news coverage – donors must be confident their money is making the difference they expect it to make.

To that end, we have begun asking nonprofits – whether secular or religious – a series of questions to ensure that those wanting to help those in need are sure that their gifts are being used to meet the needs that charitable organizations say they are providing.

We’ve already reached out to three. As of this writing, only one has responded. Rest assured, though, that we will not let them dodge these important questions. We’re also asking nonprofits that provide artistic and cultural programming the same questions. For those that value the benefits of attending a concert, art exhibit or theater production, there is no room for waste.

This work and the questions we ask are not new to me. I have served as a board member/chairman on several nonprofits. I’ve served as the executive director of a Christian ministry. More importantly, as a journalist I worked for seven years as the Managing Director of Education and Communications for Wall Watchers, a Donor Advocacy ministry based in Matthews, N.C. I participated in the research of more than 500 Christian ministries across the United States operating under section 501(c)(3) of the Internal Revenue Code and wrote dozens of articles about many of them. We focused on each ministry’s compliance with nonprofit (also called charitable organizations) criteria and documentation. Part of that process included identifying those demonstrating best practices, which we called “Shining Lights.” For those that did not comply with the IRS standards and/or were not transparent in answering questions and providing basic documentation, we issued what we called “Donor Alerts.”

Many people don’t have full time jobs, and so are living on less. The average rent for an apartment or home in North Carolina is at minimum $1,100 a month; it is usually higher. How does one buy food or clothing when rent is at least $13,200 a year – 88 percent of a full-time job on a minimum wage?

The primary purpose of our organization was to ensure donors that their contributions were being used wisely. Most ministries fit into that category. Shining Lights and Donor Alerts were the exceptions.

So, below are the questions we are asking of nonprofits. Some may seem redundant, as some may be addressed in Bylaws, Form 990 or other documents. Form 990 is an annual filing required by the Internal Revenue Service (IRS) for tax-exempt organizations. It provides the public and donors with information about a charitable organization’s governance, finances, programming, compensation, revenues, expenditures and assets – and ultimately transparency.

The answers to these questions provide potential donors and the community with the confidence that nonprofit organizations are operating efficiently and as required by law. Finally, while we consider it essential that these questions be answered, we do believe in extending grace, especially to new and fledgling organizations, as these questions provide a teachable moment for those organizations committed to doing things properly and being transparent.

  1. Please provide a copy of your Form 990.
  2. Who is on your Board of Directors?
  3. What steps has the Board of Directors taken to meet its fiduciary responsibility to ensure that the organization is using funds to support its charitable mission in accordance with donors’ intents?
  4. Please provide a copy of your EIN.
  5. Please provide a copy of your Bylaws.
  6. Please provide a copy of your Statement of Faith.
  7. Please provide a copy of your Mission Statement.
  8. Please provide copies of the proper licenses required by State and Local Authorities Having Jurisdiction that govern the manner in which you operate.
  9. How do you ensure that contributions you receive are being used for the stated purpose of your ministry?
  10. What steps do you take to ensure that none of your contributions are used to inure organizational employees?
  11. What steps do you take to ensure that you do not attempt to influence legislation or ordinances through political or lobbying activities?
  12. Do you have an Executive Summary that includes your mission statement and purpose, business goals, business values, and how you will meet the needs of your target audience?
  13. What products, services and programs do you offer?
  14. What do you want your community impact to be for your clients/recipients of charitable giving and how do you measure your success in achieving your desired community impact?
  15. What are the gaps in the community you wish to fill?
  16. What is your marketing plan that identifies your target donors and plans for recruiting others to assist with your mission?
  17. What is your financial plan to get funding, such as grants and donations?
  18. What are your revenues and expenditures?
  19. What percentage of your revenues are used for salaries?
  20. What percentage of your revenues are used for marketing?
  21. What plans do you have in place to ensure you are fully transparent with donors and the community?
  22. Do you have an Executive Succession Plan? If so, please provide a copy.

These are all reasonable questions, especially as every donor, organization and nonprofit clients work to stretch every dollar given or received.

This is why we make it crystal clear that we expect responses to these questions. We seek to meet with the organizations in person, while we also know that some of these questions are easily answered through email or on the phone. But answers we will demand! Those dodging the questions can be confident that our readers will know that the organization is not being transparent and are not worthy of support. Those that cooperate and demonstrate a true commitment to using donated dollars and items wisely can be equally confident that our readers will know of their honest and exceptional efforts.

Those depending on the work of organizations that have been granted nonprofit status deserve this high level of scrutiny, as do the donors supporting them.

© Michael M. Barrick, 2026. Photo by Jon Tyson on Unsplash

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