ProSpeak: What Americans Really Need to Know About Charities

2. Are we growing? Just as growth is one measure of the effectiveness of a corporation, so it is with a charity. Growth is often an indication of dynamism, vision, effective leadership and success.

3. Do we spend enough of our revenue on programs? A thriving charity should spend most of its revenue on the programs it purports to conduct because that's why donors give in the first place. But how much is the right amount? That depends on a number of factors including where the organization is in its life cycle (a new organization vs. a more mature charity vs. an organization in growth mode), what types of donations account for the bulk of revenue (e.g., small gifts, monthly pledges, large gifts, legacy gifts, gifts in kind) and what it needs to accomplish its objectives (e.g., hundreds of thousands of members to actually accomplish its advocacy goals).