Giving: Rating Charity Finances
by Penelope Wang
June 1, 2002
Giving to a good cause just got easier. No, we're not talking about finding the extra bucks to donate, but about separating well-run charities from well-intentioned money wasters. A new website called Charitynavigator.org provides free financial evaluations and zero- to four-star fiscal ratings for more than 1,000 charities. Using data from charity tax returns, Charity Navigator evaluates a nonprofit's day-to-day efficiency based on the amounts spent on fund raising, administration, and programs. The group also assesses the charity's long-term financial stability by examining the growth in operating revenue, program expenses and working capital.
Content courtesy of Money Magazine