Preparation Steps for this Project

1. You are to sign up for GuideStar on the Internet. (This is a free service.) See Appendix for a written description of GuideStar and non-profit organizations.

2. Make sure the following statement is not a mystery to you: 1) Business exists to make a profit whereas 2) NPOs exist to meet their exempt purpose and will use profit to be sustainable.

Project Requirements You are trying to determine if you should approve or disapprove a $50,000 donation to an NPO of your choice. To make the determination, you will present a two-page report of the organization so that your instructor knows why you made your approval or disapproval decision.

The NPO must meet the following requirements:

Must be a 501 (c) (3), (4), (5), or (6) organization, and Must have assets or revenues over $1,000,000

Search GuideStar to acquire and save their latest Form 990.

Requirements: The first one-and-a-half pages will include facts about the NPO and summarized tables or figures showing

1) balance sheet, and 2) revenues and expenditures from the latest Form 990.

These summary tables are to be placed into the assignment and are not to be appendix items. The organizations exempt purpose must be written in your report.

This part of the assignment could include the following facts about the organization:

1. The salary of the highest-paid employee? 2. How much money was spent on the administrative activities of the NPO? What percentage of donations went to pay for administrative services? 3. Current ratio of the organization? 4. Include other facts that could have bearing on your decision.

The last half-page of the two-page report must show this box stating your giving status and rationale:

My decision: Yes, I will make the $50,000 donation. (or No, I will not make the $50,000 donation.) My reasons are: