Before donating to any nonprofit, especially when benefiting from Act 60 in Puerto Rico, it’s crucial to do your due diligence. Here are the essential questions you should ask:

1. Can you provide proof of your legal nonprofit status?
   Ask to see their 501(c)(3) status (for U.S.-based nonprofits) or 1101.01 certification for Puerto Rico nonprofits. You can also verify if the nonprofit is listed under CESFL (Centro de Evaluación, Supervisión y Fiscalización de Loterías y Fondos Públicos) to ensure they are legally recognized in Puerto Rico.

2. Can I see a breakdown of your financials?
   Request financial statements that show how donations are spent. A legitimate nonprofit should be transparent about their revenue, expenses, payroll, and how funds are allocated. If they refuse to provide this information or are vague about it, be cautious.

3. How much money do you raise annually, and what percentage goes toward the cause?
   If a nonprofit raises substantial amounts of money—say, half a million dollars a year—ask how much of that actually goes toward the intended cause. A high percentage should go directly to the mission rather than administrative costs or fundraising efforts. If the nonprofit is spending too much on salaries, overhead, or marketing, consider supporting smaller, more locally focused charities.

4. Where are my donations going? Are they funding public schools for kids in need?
   If the nonprofit claims to help children, ask if the donations go toward public schools for kids who need it, or if the money is being funneled into private schools or other less needy causes. This is particularly important if you’re supporting education-related initiatives.

5. Can you show tangible evidence of the impact of your work?
   Ask for specific examples of how the nonprofit has made a difference in the community. They should be able to provide clear evidence of how their programs have directly benefited the people they serve. If they can’t, it may be a sign they aren’t delivering on their promises.

6. Do you publish an annual report?
   A legitimate nonprofit will release an annual report detailing their financial status, achievements, and future goals. If they don’t have an annual report, or if they’re reluctant to provide one, that’s a red flag.

7. What are your payroll and employee numbers?
   Request information about their staff and salaries. If the nonprofit has a large payroll relative to the amount of donations it raises, it could be a sign that too much money is going toward administrative costs instead of directly supporting the cause.

8. Why should I support your nonprofit instead of smaller, local organizations?
   If they raise significant amounts of money, ask them why they are the best option compared to smaller, local charities. Smaller nonprofits may have a greater impact on the community, so it’s important to understand why larger organizations deserve your support.

9. How often do you ask for donations, and how urgent is the need?
   Be wary of nonprofits that constantly ask for money. While fundraising is necessary, frequent and urgent appeals for funds could indicate that the organization has trouble managing its budget or is overspending on non-essential expenses.

10. Can you explain any administrative costs or fees associated with donations?
    Understand how much of your donation goes toward the cause and how much goes toward overhead or administrative costs. If a large percentage of the money is spent on salaries, marketing, or operations, ask how they justify these expenses.

By asking these important questions, you can make more informed decisions about where your donations go, ensuring they benefit the cause and the community. Always check the financial transparency, mission clarity, and impact of the nonprofit, especially if you’re donating under Act 60 in Puerto Rico.