The Internet has been a game-changer for charities, with many not-for-profits benefiting from the power of viral marketing. Whereas in the past, charities had to rely on traditional media to get their message out, today’s digital landscape means that it’s possible to reach thousands of people with the click of a button.

One of the most well-known examples of viral marketing is the ALS Ice Bucket Challenge. The charity saw a huge influx of donations after people poured buckets of ice water over their heads, raising over $100 million in a few short weeks. However, it’s not always easy to determine which causes are legitimately good and which may not use donations effectively.

This is where the IRS Form 990 comes into play. Every US-based charity is required to complete this form, which is publically available, offering transparency into how an organization is run. Here are some key indicators to consider when using the Form 990 to evaluate a charity:

1. Measuring the Need: The first question to ask is whether the cause is a major problem that urgently needs to be addressed. For example, funding biomedical research on a debilitating disease is a much more pressing issue than knitting coats for homeless dogs.

2. Finding the Form 990: A simple search engine query can help you find the Form 990 for most charitable organizations. Alternatively, you can sign up for a free account at GuideStar to access financial data on major charities.

3. Income vs. Expenses: Lines 12 through 19 on the Form 990 summarize how an organization spends its money, giving you a quick overview of how it operates. Line 12 denotes the organization’s total revenue for the previous year, while Lines 13 through 19 explain how that money was spent.

4. Administration Fees: Every charity has some administrative costs, but the key is to determine if those fees are proportionate to the good they are doing. Line 16b of the Form 990 tells you how much the charity spent on fundraising fees, offering a good indication of efficiency when compared to overall revenues.

5. Grants: Line 13 is the dollar amount given out in grants and other similar funds – this is the money that goes towards the charity’s work. The higher the number on Line 13 compared to Line 12, the more of your money goes towards working on the cause you donated to.

6. Executive Salaries: Page 8 of the Form 990 outlines the salaries of the organization’s highest-paid employees. This allows you to see exactly how much of your donation goes into the pockets of those doing the fundraising.

7. Marketing and Contract Work: The bottom of Page 8 shows the dollar amounts spent on private contractors for things like marketing and media productions. This gives you an idea of where the charity is allocating funds outside of its core mission.

By using the IRS Form 990 to evaluate charities before donating, you can ensure that your money is going to an organization that aligns with your values and uses your donation effectively. While researching charities may take a bit of effort, it’s worth it to ensure your contribution is making the impact you intended.