CharityWatch, founded more than 20 years ago as the American Institute of Philanthropy (AIP), is America's most independent, assertive charity watchdog. CharityWatch does not merely repeat what a charity reports using simplistic or automated formulas. We dive deep to let you know how efficiently a charity will use your donation to fund the programs you want to support. CharityWatch exposes nonprofit abuses and advocates for your interests as a donor.
CharityWatch analysts perform in-depth evaluations of complex charity financial reporting, including audited financial statements, tax forms, annual reports, state filings, and other documents. Once our analysis of a charity is complete, and any necessary adjustments are made, we perform two end calculations for Program % and Cost to Raise $100. We average the two results on our scale then assign the charity a final letter grade efficiency rating ranging from A+ to F.
Program % reflects the percent of total expenses a charity spent on its programs in the year analyzed. For example, a Program % of 80% means that the charity spent 80% of its expenses on charitable programs. The remaining 20% was spent on overhead, which includes fundraising, and management & general.
Cost to Raise $100 reflects how much it cost the charity to raise each $100 of cash donations from the public in the year analyzed. For example, a Cost to Raise $100 of $20 means that the charity spent $20 on fundraising for each $100 of cash donations it received.
Many charities present their fundraising efficiency to donors, using pie charts or other means, by comparing their total revenue to their fundraising expenses. This method often has the effect of making a charity appear to be a more efficient fundraiser than it actually is. Many of the revenues charities report, such as investment income, sales proceeds, program service revenue, etc., are not brought in as a result of fundraising.CharityWatch helps you to judge the fundraising efficiency of a charity by comparing fundraising expenses with related contributions, not total revenue. Related contributions are funds raised as the result of fundraising activities.
CharityWatch is funded by the public — not charities, advertisers, trade associations, or other special interests. Your membership contribution funds our independent research and in-depth financial analysis of charities' audited financial statements, tax filings, fundraising contracts, and other reporting. As a watchdog, CharityWatch does not simply repeat what a charity reports using simplistic or automated formulas. We dive deep in order to let you know how efficiently your donations to a charity will fund the programs you want to support. Please help us promote the transparency and accountability of all charities by becoming a member today.
Donors who want to make contributions towards charitable programs that serve the military and veterans face an almost overwhelming volume of choices with, by some accounts, the existence of over 40,000 nonprofit organizations dedicated to serving the military and veterans and an estimated 400,000 service organizations that in some way touch veterans or service members. Even the 2013/2014 Directory of Veterans and Military Service Organizations published by the U.S. Office of the Secretary of Veterans Affairs as an informational service for veterans seeking support lists over 140 national nonprofit organizations. Additionally, the number of new veterans charities has increased relatively rapidly over the past five years or so, growing by 41% since 2008 compared with 19% for charities in general, according to The Urban Institute as reported in a December 2013 The NonProfit Times article. With so many veterans and military organizations competing for charitable dollars, it may take a little extra effort on the part of donors to be well-informed, but that effort is essential given the great need for donations to be used as efficiently and effectively as possible.
Generally the watchdogs don't rate religious organizations, although you might find some listed, especially if they solicit money from the general public.
Figuring out which small, local charities deserve your support is tougher because many aren't rated by the watchdogs. Regional BBBs have evaluated about 10,000 local groups; these reports are available through the BBB Wise Giving Alliance.
0 comments:
Post a Comment