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How Do We Decide To Remove A CN Advisory?

 
 

How long a charity keeps its advisory depends on the level of concern. Low Concern CN Advisories will remain in place a minimum of 6 months and High to Moderate Concern CN Advisories will remain in place for a minimum of 12 months. If the charity provides public domain documentation or similarly reliable and accessible information that shows that the issues identified in the CN Advisory have been resolved and that they have taken action steps to prevent the issue from happening again, then the advisory may be removed sooner.

 

For rated charities that have a CN Advisory for failing to report their fundraising costs

We will consider removing the CN Advisory if we receive an amended Form 990 detailing the charity’s fundraising expenses along with evidence that the IRS has also received the amended Form 990. 

 

For rated charities that choose not to amend their 990

We will consider removing the CN Advisory if the charity reports fundraising expenses on their 990 for three consecutive years following the zero fundraising. For the CN Advisory to be lifted, fundraising expenses must amount to no less than 1% of the charity’s total functional expenses.

 

Once the committee decides to remove the CN Advisory

When we decide to remove a CN Advisory from a rated charity, an archived version of the advisory will remain in the historical section of a charity’s profile page. 

 

When we decide to remove a CN Advisory from an unrated charity, an archived version of the advisory will remain on the charity’s unrated profile page.

 

Any archived advisory will include information that caused the removal of the CN Advisory. This way, donors have an opportunity to learn about and understand the issues the charity previously faced and, if available, how it resolved those issues. If no significant proof of the initial issue(s) is identified within the 12 to 24-month window (exact duration is determined by level of concern), it will no longer be regarded of adequate importance to be factored into a donor’s current charitable giving/social investment decisions and the advisory will be archived. 

 

See How Do We Decide to Post a CN Advisory? for an explanation about our process for posting CN Advisories.

 

See our FAQs for more information on the CN Advisory System.

 

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