By AMELIA XANN

As a successful business executive, you are likely to be asked to provide financial support or to serve on the board of a non-profit organization. Perhaps you are concerned that the organization might be careless with donor dollars, employ too many people or fail to comply with government regulations. How can you research a non-profit like you would a for-profit company before investing in it, to ensure you are contributing your time and money wisely?

Today, in my opinion, you can take on civic activities with greater confidence, knowing you have access to information that can help you act as wisely in the non-profit arena as you do in your day-to-day business dealings.

Thanks to the Sarbanes-Oxley Act of 2002 and other reforms, corporate executives and board members now disclose information in ways that are much more accessible to shareholders, employees and other stakeholders. I believe this same emphasis on transparency has also dramatically influenced the way non-profit organizations operate. Charitable organizations now openly share operational and financial information. And, similar to the for-profit sector, many non-profits are now working more efficiently and with better governance.

For evidence of the heightened emphasis on openness among grant-making organizations, just turn to the Internet. On the Web sites of many foundations you will find very specific information about the kinds of grants the foundation makes, the criteria they use in selecting grant recipients and how eligible non-profits can apply for a grant. This kind of open communication might seem routine to a business executive, but only a few years ago it was not uncommon for non-profit executives to feel that they needed a “personal introduction” to a foundation in order to be considered for a grant.

A click of the mouse on an organization’s Web site will often bring you to its IRS Form 990, which discloses extensive information about its mission, programs and finances. Larger foundations are likely to produce a full annual report. For example, my organization, the Jewish Community Foundation of Los Angeles, produces a detailed annual report with a treasurer’s report based on available audited financials, which is distributed to more than 11,000 recipients.

The same push to a much more open exchange of information has strengthened the way foundations and grant recipients work together, as well. The relationship between grant-making organizations and their grantees is now viewed as a partnership, aimed at maximizing the likelihood of a program’s success. Because that requires an understanding of mutual objectives, we and many other foundations use a formal Grant Agreement. This document details program goals and implementation strategies, identifies benchmarks and specifies measurable outcomes to be reached in order for grant dollars to be disbursed.

In business, not every new product is a success in the marketplace. In the non-profit arena there are also risks. Grant-makers know that some of the programs they fund may fail indeed, some foundations focus on higher-risk projects that, if successful, could result in significant enough change to warrant the risk. Medical research that would have life-saving results is an example. Foundations working collaboratively with their grant recipients look for ways to steer a troubled program toward a positive result.

When that’s not possible, non-profits use failure as an opportunity to improve their grant-making and contribute to the field of philanthropy by sharing lessons learned. The Annenberg Foundation, for example, made available to the public the final report of its historic attempt at school reform, aptly naming the report “The Annenberg Challenge: Lessons and Reflections on Public School Reform,” June 2002. Similarly, in “Midcourse Corrections to a Major Initiative,” May 2007, the James Irvine Foundation shared significant lessons learned during a six-year educational initiative.

Non-profits are using transparency to engage the public in their mission and programs, and in so doing are shifting the domain of charitable giving from the superwealthy to citizens of all ages and means. This trend is serving to galvanize the public and is creating a culture of increased civic responsibility among businesses, volunteers and charitable donors. Today the information is at your fingertips. Now, as never before, you can feel comfortable taking the next step and investing in a foundation or other non-profit organization that shares your passion for creating the world we want.

Amelia Xann is director of grant programs at the Jewish Community Foundation of Los Angeles, which manages $750 million in charitable assets for local philanthropists.