Is there a website out there that rates charitable organizations?
Posted on March 8th, 2013 by 1B
There are so many worthy causes out there, but there must be some that do a better job with the donations they receive. I’ve heard about top-heavy organizations that use most of their donations just to support the organization. My gifts aren’t large and I want them to really count.
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several are listed on google.
http://www.charitywatch.com
http://www.charitynavigator.com
http://charitynavigator.org is one of the most comprehensive. They pull their data from IRS form 990 for all organizations required to file a 990 that have filed one for the last 3 consecutive years. They apply their criteria evenly, which is good, but don’t allow for any comment or explanation from the charity, which is less good.
http://charitywatch.org is a product of the American Institute of Philanthropy that does very thorough reviews but only lists a fraction of the charities. It only lists very large charities(have to be receiving over $1,000,000/year from individuals) that are requested by it’s subscribers.
http://give.org is a product of the Better Business Bureau Wise Giving Alliance. They do a comprehensive review of charities that submit extensive documentation and highlight any deficiencies. If you are looking for a local charity, you can find your local BBB here: http://lookup.bbb.org/
Those are the big 3 raters but their are quite a few smaller organizations(such as Independent Charities of America) as well.
Just because a charity isn’t rated doesn’t mean it isn’t worthy. Many small charities are under the radar of the big rating organizations and they are often most able to efficiently use your money. You can always ask to see a copy of their audited financials or their 990-EZ if they are too small to have to file a full 990.
Look for smaller charities locally where you can see what they do. You can go to http://www.guidestar.org and figure it out for yourself. It’s free. Create a user name and password. Then put in your zip code and look for charities near you. Look at their 990, which is what they fill out to tell the government what they spent. There’s a line on the first page that says specifically what they spent for fundraising and administration. Personally, I think that if they spent 75 cents of every dollar on programs, they’re doing okay.
Also, get involved in some charities, or ask your friends what they’re involved with, and support the causes they support. They’re more likely to know what’s going on and who is worthy.
Good luck! Your heart is in the right place!
In addition to Charity Watch and Charity Navigator, you might be interested in looking at the website of the Association of Fundraising Professionals – http://www.afpnet.org/ – they have alot of information about appropriate ethical practices for people raising money, etc.