Mission: Founded in 1972, Second Harvest Food Bank Santa Cruz County mission is to end hunger through healthy food, education and leadership. Second Harvest began by distribu ... (More)

Second Harvest Food Bank Santa Cruz County is a 501(c)(3) organization, with an IRS ruling year of 1993, and donations are tax-deductible.

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Contact Information

  http://www.thefoodbank.org/

  800 Ohlone Parkway
Watsonville CA 95076 

  831-722-7110


 Important note on the timeliness of ratings

The IRS is significantly delayed in processing nonprofits' annual tax filings (Forms 990). As a result, the Financial and Accountability & Transparency score for Second Harvest Food Bank Santa Cruz County is outdated and the overall rating may not be representative of its current operations. Please check with the charity directly for any questions you may have.

You are viewing this organization's new Charity Navigator profile page. To view the legacy version, click here.

Star Rating System by Charity Navigator


Charity Navigator evaluates a nonprofit organization’s financial health including measures of stability, efficiency and sustainability. We also track accountability and transparency policies to ensure the good governance and integrity of the organization.




Exceptional

This charity's score is 90.24, earning it a 4-Star rating. Donors can "Give with Confidence" to this charity. 

This score is calculated from two sub-scores:

This score represents Form 990 data from 2019. More recent filing data is available, but it has not been factored into this score, due to COVID-19's effect on this organization.

View this organization’s historical ratings.

Rating update postponed due to COVID-19's impact on this organization. View Second Harvest Food Bank Santa Cruz County's response.


Back to Overall

Star Rated Report

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Program Expense

Program Expense Ratio

94.9%


The Program Expense Ratio is determined by Program Expenses divided by Total Expense (average of most recent three 990s).


This measure reflects the percent of its total expenses a charity spends on the programs and services it exists to deliver. Dividing a charity's average program expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Administrative Expenses

2.5%


As reported by charities on their IRS Form 990, this measure reflects what percent of its total budget a charity spends on overhead, administrative staff and associated costs, and organizational meetings. Dividing a charity's average administrative expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Fundraising Expenses

2.4%


This measure reflects what a charity spends to raise money. Fundraising expenses can include campaign printing, publicity, mailing, and staffing and costs incurred in soliciting donations, memberships, and grants. Dividing a charity's average fundraising expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Liabilities to Assets Ratio

17.8%


The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990).


Part of our goal in rating the financial performance of charities is to help donors assess the financial capacity and sustainability of a charity. As do organizations in other sectors, charities must be mindful of their management of total liabilites in relation to their total assets. This ratio is an indicator of an organization’s solvency and or long term sustainability. Dividing a charity's total liabilities by its total assets yields this percentage.


Source: IRS Form 990

Fundraising Efficiency

$0.02


The amount spent to raise $1 in charitable contributions. To calculate a charity's fundraising efficiency, we divide its average fundraising expenses by the average total contributions it receives. We calculate the charity's average expenses and average contributions over its three most recent fiscal years.


Source: IRS Form 990

Working Capital Ratio

0.47 years


Determines how long a charity could sustain its level of spending using its net available assets, or working capital, as reported on its most recently filed Form 990. We include in a charity's working capital unrestricted and temporarily restricted net assets, and exclude permanently restricted net assets. Dividing these net available assets in the most recent year by a charity's average total expenses, yields the working capital ratio. We calculate the charity's average total expenses over its three most recent fiscal years.


Source: IRS Form 990

Program Expense Growth

-0.46%


We compute the average annual growth of program expenses using the following formula: [(Yn/Y0)(1/n)]-1, where Y0 is a charity's program expenses in the first year of the interval analyzed, Yn is the charity's program expenses in the most recent year, and n is the interval of years passed between Y0 and Yn.


Source: IRS Form 990

Governance


Charity Navigator looks to confirm on the Form 990 that the organization has these governance practices in place.


Sources Include: IRS Form 990

Governance:
Independent Voting Board Members  ... (More)
No Material Diversion of Assets ... (More)

A diversion of assets – any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft – can seriously call into question a charity's financial integrity. We check the charity's last two Forms 990 to see if the charity has reported any diversion of assets. If the charity does report a diversion, then we check to see if it complied with the Form 990 instructions by describing what happened and its corrective action. This metric will be assigned to one of the following categories:

  • Full Credit: There has been no diversion of assets within the last two years.

  • Partial Credit: There has been a diversion of assets within the last two years and the charity has used Schedule O on the Form 990 to explain: the nature of the diversion, the amount of money or property involved and the corrective action taken to address the matter. In this situation, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: There has been a diversion of assets within the last two years and the charity's explanation on Schedule O is either non-existent or not sufficient. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Audited Financials Prepared by Independent Accountant ... (More)

Audited financial statements provide important information about financial accountability and accuracy. They should be prepared by an independent accountant with oversight from an audit committee. (It is not necessary that the audit committee be a separate committee. Often at smaller charities, it falls within the responsibilities of the finance committee or the executive committee.) The committee provides an important oversight layer between the management of the organization, which is responsible for the financial information reported, and the independent accountant, who reviews the financials and issues an opinion based on its findings. We check the charity's Form 990 reporting to see if it meets this criteria.

  • Full Credit: The charity's audited financials were prepared by an independent accountant with an audit oversight committee.

  • Partial Credit: The charity's audited financials were prepared by an independent accountant, but it did not have an audit oversight committee. In this case, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: The charity did not have its audited financials prepared by an independent accountant. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Does Not Provide Loan(s) to or Receive Loan(s) From Related Parties ... (More)
Documents Board Meeting Minutes ... (More)
Distributes 990 to Board Before Filing ... (More)
Compensates Board ... (More)

Policies


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization has these policies in place.


Sources Include: IRS Form 990 and organization's website

Policies:
Conflict of Interest  ... (More)
Whistleblower ... (More)
Records Retention and Destruction ... (More)
CEO Compensation Process ... (More)
Donor Privacy ... (More)

Donors can be reluctant to contribute to a charity when their name, address, or other basic information may become part of donor lists that are exchanged or sold, resulting in an influx of charitable solicitations from other organizations. Our analysts check the charity's website to see if the organization has a donor privacy policy in place and what it does and does not cover. Privacy policies are assigned to one of the following categories:

  • Yes: This charity has a written donor privacy policy published on its website, which states unambiguously that (1) it will not share or sell a donor's personal information with anyone else, nor send donor mailings on behalf of other organizations or (2) it will only share or sell personal information once the donor has given the charity specific permission to do so.

  • Opt-out: The charity has a written privacy policy published on its website which enables donors to tell the charity to remove their names and contact information from lists the charity shares or sells. How a donor can have themselves removed from a list differs from one charity to the next, but any and all opt-out policies require donors to take specific action to protect their privacy.
  • No: This charity either does not have a written donor privacy policy in place to protect their contributors' personal information, or the existing policy does not meet our criteria.

The privacy policy must be specific to donor information. A general website policy which references "visitor" or "user" personal information will not suffice. A policy that refers to donor information collected on the website is also not sufficient as the policy must be comprehensive and applicable to both online and offline donors. The existence of a privacy policy of any type does not prohibit the charity itself from contacting the donor for informational, educational, or solicitation purposes.

(Less)

Transparency


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization makes this information easily accessible.


Sources Include: IRS Form 990 and organization's website

Transparency:
CEO Salary Listed on 990 ... (More)
Board of Directors Listed on Website ... (More)
Key Staff Listed on Website ... (More)
Audited Financial Statements on Website ... (More)
Form 990 Available on Website ... (More)

Additional Information

Unscored

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Total Revenue and Expenses

Total Revenue and Expenses

This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.

Salary of Key Persons

Presented here are this organizations key compensated staff members as identified by our analysts. This compensation data includes salary, cash bonuses and expense accounts and is displayed exactly how it is reported to the IRS. The amounts do not include nontaxable benefits, deferred compensation, or other amounts not reported on Form W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting



Willy Elliot-McCrea, Chief Executive Officer

$143,262 (0.80% of Total Expenses)


Current CEO and Board Chair can be found in the Leadership & Adaptability report below.

Source: IRS Form 990 (page 7), filing year 2020

Business Master File Data

Below are some key data points from the Exempt Organization IRS Business Master File (BMF) for this organization. Learn more about the BMF on the IRS website


Activities:

Supplying money, goods or services to the poor (BMF activity code: 560)


Foundation Status:

Organization which receives a substantial part of its support from a governmental unit or the general public   170(b)(1)(A)(vi) (BMF foundation code: 15)


Affiliation:

Independent - the organization is an independent organization or an independent auxiliary (i.e., not affiliated with a National, Regional, or Geographic grouping of organizations). (BMF affiliation code: 3)

Data Sources: IRS Forms 990

The Form 990 is a document that nonprofit organizations file with the IRS annually. We leverage finance and accountability data from it to form Encompass ratings. Click here to view this organization's Forms 990 on the IRS website (if any are available).

Pandemic Response

This organization was impacted by COVID-19 in a way that effected their financial health in 2020. This normally would have reduced their star rating. Due to the unprecedented nature of the pandemic, we give charities such as this one the opportunity to share the story of COVID's impact on them, and doing this pauses our revision of their rating. Charities may submit their own pandemic responses through their nonprofit portal.


Second Harvest Food Bank Santa Cruz County reported being impacted by COVID-19 in the following ways:
  • Program Delivery

  • Fundraising Capacity

  • Revenue

  • Staffing


How COVID-19 impacted the organization's operations financially:

Food insecurity in Santa Cruz County was always high, we’re a high cost of living, low wage county. Once the pandemic hit and shelter in place was declared, need for Food Bank services doubled in one month. At the same time, the food bank had to move to a more labor intensive and expensive food packing/distribution model while we lost our volunteer base due to shelter in place. Increase costs included temporary labor to replace the volunteer labor force, additional boxes and mesh bags as well as increased food and fuel costs. We had to move from a primarily farmer’s market style distribution to grab and go, drive through distributions. This means that all food needed to be bagged or boxed, and individual choice and selection were eliminated to reduce contact and chance of COVID transmission. Drive through distributions are more labor intensive and required additional staffing, significantly more than farmers market-style distributions.


How COVID-19 impacted the organization's delivery of programs:

Second Harvest Food bank supports Santa Cruz County’s food needs in three ways: Nutrition distribution through Food Bank programs; Non profit partner support; and CalFresh application assistance. The pandemic affected each of these paths toward better nutrition. Because of the pandemic, several locations where we held our nutrition distribution programs as well as non profit partner agencies closed due to lack of volunteers and/or concerns for the health and safety of the individuals running the programs. Food selection was affected because of the need to pre-bag or box all foods for easier distributions. In addition, nutrition education and cooking demonstrations were curtailed to avoid large gatherings of people and food choice lines. With the closure of sites, our CalFresh outreach specialists had to become creative to get people the benefits they needed, especially early in the pandemic. We could not have in person office meetings or satellite office hours.


How this organization adapted to changing conditions caused by COVID-19:

To deal with closing sites, significant increase in need and the desire to be socially distanced and safe as possible, Second Harvest’s distributions moved to a primarily drive through or grab and go distribution model. This made food distribution contactless for both staff and the community members. CalFresh staff invested in phone and text solutions and set up outdoor locations with phones, tablets and internet access to help people through the application process.


Innovations the organization intends to continue permanently after the pandemic:

Previous to the pandemic, many of our non profit partner agencies would come directly to our warehouse to “shop”, hand pick the items they would like to take with them. This process was less efficient and more difficult for inventory control as items were leaving the building as other organizations were on-line selecting inventory. Because of the pandemic, the Food Bank limited access to individuals in the warehouse, in order to keep staff safe from infection. Second Harvest moved to an entirely on-line order process with the option for delivery or pick up. This efficient process allows our agency partners to order from current inventory and have it delivered directly to them. Again, this keeps both staff and our partners safe as we see a current spike in Omicron spread throughout the county.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
12/23/20202019 90.24
9/3/20192018 90.01
9/1/20182017 92.74
10/1/20172016 90.76
11/1/20162015 92.19
6/1/20162014 88.87
Rating Version: 2.0
11/1/20152014 90.79
12/1/20142013 92.32
9/1/20132012 95.86
10/1/20122011 92.62
11/1/20112010 93.76
9/20/20112009 93.73
Rating Version: 1.0
9/1/20102009 94.57
9/1/20092008 96.59
10/1/20082007 86.30
6/1/20072006 85.48
6/1/20062005 86.68
5/1/20052004 94.51
8/1/20042003 89.47
11/1/20032002 89.12
4/15/20032001 77.11

Previous: Finance & Accountability  / Next: Leadership & Adaptability

...   Impact & Results


This score estimates the actual impact a nonprofit has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact.


Impact & Results Score

75

out of 100

Second Harvest Food Bank Santa Cruz County is , earning a passing score. This score has no effect on the organization's Star Rating.


Impact

$2 provides a meal to a person in need.


Do you work at Second Harvest Food Bank Santa Cruz County? Join the waitlist for an updated Impact & Results score.


Back to Overall

Impact & Results Report

75

of 100 points


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Rated Program

Rated Program


Program

Partner Agency Distribution

Activities

The nonprofit collects, warehouses and distributes food to front-line organizations like food pantries and soup kitchens.

Program Type

Beneficiaries Served

Program Geography

Time Period of Data


Learn how we assess the impact of nonprofits

Outcomes and Cost

Outcomes: Changes in the lives of those served by a nonprofit. They can be caused by the nonprofit.

Costs: The money spent by a nonprofit and its partners and beneficiaries.

Impact: Outcome caused by a nonprofit relative to its cost.

Cost-effectiveness: A judgment as to whether the cost was a good use of resources to cause the outcome.


Outcome Metric


Outcome Data Source

Ratings are based on data the nonprofit itself collects on its work. We use the most recent year with sufficient data. Typically, this data allows us to calculate direct changes in participants' lives, such as increased income.


Outcome data collected during the program. The nonprofit publicly reports the amount of food it provides.


Method for Attributing Outcomes

We don't know if the observed changes were caused by the nonprofit's program or something else happening at the same time (e.g., a participant got a raise). To determine causation, we take the outcomes we observe and subtract an estimate of the outcomes that would have happened even without the program (i.e., counterfactual outcomes).


We assume that the distribution of a meal from one nonprofit's food distribution program does not diminish the amount of food distributed by any other (neighboring) food distribution program. This “counterfactual” assumption about the amount of food distributed in the absence of the nonprofit’s food distribution program implies that the benefit of a meal to a beneficiary in need constitutes a net gain; the gain is not offset by reductions in food provided to other beneficiaries in need. We therefore set the counterfactual to zero.


Cost Data Source

After estimating the program's outcomes, we need to determine how much it cost to achieve those outcomes. All monetary costs are counted, whether they are borne by a nonprofit service deliverer or by the nonprofit’s public and private partners.


Program cost data reported by the nonprofit. Partner and beneficiary costs reported by the nonprofit or estimated by Charity Navigator.


Impact and Determination

We calculate impact, defined as the change in outcomes attributable to a program divided by the cost to achieve those outcomes.

Impact Statement

$2 provides a meal to a person in need.

Benchmark for Rating

Impact & Results scores of food distribution programs are based on the cost of a meal relative to the cost that a food-secure person incurs to buy a meal in that county. Programs receive an Impact & Results score of 100 if they are less than 75% the cost of a meal and a score of 75 if they are less than 125%. If a nonprofit reports impact but doesn't meet the threshold for cost-effectiveness, it earns a score of 50.

Determination

Analysis Details


Analysis conducted by ImpactMatters and published on November 22, 2019.

Additional Information

Unscored

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Largest Programs

Largest Programs



Second Harvest Food Bank Santa Cruz County reported its two largest programs on its FY 2019 Form 990 as:


$15,693,678

Spent in most recent FY

92%

Percent of program expenses


Food Distribution


$1,318,099

Spent in most recent FY

7%

Percent of program expenses


Education Outreach


Previous: Impact & Results  / Next: Culture & Community

...   Leadership & Adaptability


This score provides an assessment of the organization's leadership capacity, strategic thinking and planning, and ability to innovate or respond to changes in constituent demand/need or other relevant social and economic conditions to achieve the organization's mission.


Leadership & Adaptability Score

100

out of 100

The score earned by Second Harvest Food Bank Santa Cruz County is a passing score. This score has no effect on the organization's Star Rating.

Encompass Rating V4 provides an evaluation of the organization's Leadership & Adaptability through the nonprofit organization submitting a survey response directly to Charity Navigator.


Back to Overall

Leadership & Adaptability Report

100

of 100 points

Mission

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission


SECOND HARVEST FOOD BANK'S MISSION IS to inspire and support Santa Cruz County to provide nourishment for all community members


Source: Nonprofit submitted responses

Vision

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.


A thriving community where everyone has access to nutritious food to support their health & well-being


Source: Nonprofit submitted responses

Strategic Goals

The nonprofit organization presents evidence of strategic thinking and goal setting through sharing their most important strategic goals.


Goal One: Organizational Effectiveness A sustainable, high performing food distribution network A safe, efficient and effective workplace An engaged and empowered staff

Goal Type: Invest in the capacity of our organization (financial, management, technical, etc.).


Goal Two: Community Inclusion, Engagement and Access Comprehensive strategies to serve all people with food insecurity in SCC Eliminating stigma around food insecurity Engaging BIPoC in service solutions

Goal Type: Grow, expand, scale or increase access to the existing programs and services.


Goal Three: Food insecurity Root Cause all through the lens of diversity, equity, inclusion & belonging. Public policies and community collaborations that address food insecurity and its root causes.

Goal Type: This goal reflects our commitment to further our advocacy work for our organization and or cause area.


Source: Nonprofit submitted responses

Leadership Development

The nonprofit provides evidence of investment in leadership development


Describe an investment in leadership

SHFB has contracted with the Citrin Group to up-level leadership throughout the organization. Based on the KornFerry Leadership architecture, cohorts of employees have been through trainings and follow up assignments to focus on building the skills necessary to lead staff and the organization. In addition to the Citrin work, all employees who supervise or could supervise employees go through the Cabrillo College Leadership Academy, a 12-week program focused on helping individuals develop as leaders. Additionally, all staff participate in our strategic planning process. This is a once every three year process where a committee of board and staff, led by a consultant, work to draft a strategic plan only after focus groups consisting of all staff members weigh in on goals, objective and tactics to move the food bank forward.

Source: Nonprofit submitted responses

Mobilizing for Mission

The nonprofit provides evidence of leadership through focusing externally and mobilizing resources for the mission.


This organization mobilizes for mission in the following ways:
  • Strategic Partnerships

  • Networks of Collective Impact Efforts

  • Thought Leadership

  • Raising Awareness

  • Community Building

  • Policy Advocacy

What are this organization’s external mobilizaton efforts?

SHFB is one of the 13 founding members of Feeding America and also a founding member of the California Association of Food Banks. Our current CEO was the first board chair of CAFB. Second Harvest has consistently met the Feeding America Advocacy guidelines, indicating that we are working to raise awareness around food insecurity and hunger locally, throughout the state and nationally. Second Harvest uses our social media to reach out to our followers to advocate for anit-hunger policy, and we work with both paid and earned media to ensure the community understands that food insecurity is unacceptable, and we're here to help anyone who needs support. Staff have presented at conferences, both locally and nationally. Our CEO is recognized as a thought leader in the food banking arena. Second Harvest hosts and annual agency conference to help our non profit partners strengthen their capacity, and we've partnered with other local organizations to help improve conditions in SCC.

Source: Nonprofit submitted responses

Story of Adaptability

The nonprofit has an opportunity to tell the story of how the organization adapted to tremendous external changes in the last year.


This past year was year two of the COVID pandemic with the continuing increase in food insecurity throughout the county. In March of 2020, California went into shelter in place lock down. Many Californians lost their jobs or needed to shelter to stay safe from COVID transmission. Overnight, need in Santa Cruz County doubled. In March 2020 the foodbank was serving about 55,000 residents a month, by May 2020, that number was over 100,000 individuals. Since July of 2020 we have stabilized to about 75,000 individuals seeking nutrition assistance monthly. The Food Bank needed to adapt to several things 1. Increased need in the community 2. Closed distribution sites 3. Increased cost of business (materials, food, transportation, labor, fuel, etc). For the increased need and closure of distribution sites, the food bank implemented large scale drive through food distributions. This ensured that residents who had either never come to a food distribution before, OR who had lost their nutrition home had a location to go to. The distributions were contactless, relied on volunteer support and provided food to thousands of Santa Cruz County residents. From the summer of 2021, we worked with our participants to make sure they knew there were other nutrition distribution options. We also worked with our partner non profit agencies to help support their reopening. By September 2021, we were able to host our last large scale distribution and ensure that our participants would be able to find support at a smaller, more focused nutrition home. The pandemic has challenged the Food Bank on so many levels. We lost the majority of our volunteer base, we doubled our service levels and we've had a difficult time staffing up to the level we need. We also saw some shining stars, including the support of the California National Guard and our donors and supporters. Our staff continues to meet the needs of the community. We will be here as long as we are needed.

Source: Nonprofit submitted responses

Additional Information

Unscored

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Organization Leadership

Organization Leadership


Willy Elliott-McCrea

Chief Executive Officer

Michele Bassi

Board Chair

Previous: Leadership & Adaptability

...   Culture & Community


This score provides an assessment of the organization's culture and connectedness to the community it serves. Learn more about how and why we rate Culture & Community.


Culture & Community Score

95

out of 100

Second Harvest Food Bank Santa Cruz County has earned a passing score. This score has no effect on the organization's Star Rating. The organization provided data about how it listens to constituents (Constituent Feedback) and its Diversity, Equity, & Inclusion (DEI) practices (see report below).

The Culture & Community Beacon is comprised of the following metrics:

  • Constituent Feedback: 100/100 (30% of beacon score)

  • Diversity, Equity, & Inclusion: 93/100 (70% of beacon score)


Back to Overall

Culture & Community Report

95

of 100 points

This beta feature is currently viewable only on desktop or tablet screens. Check back later for updates.

Constituent Feedback

Diversity, Equity, & Inclusion

93/100 points

70% of beacon score


This organization's score of 93 is a passing score. The organization reported that it is implementing 8 diversity, equity and inclusion (DEI) practices. Charity Navigator believes nonprofit organizations implementing effective DEI policies and practices can enhance a nonprofit's decision-making, staff motivation, innovation, and effectiveness.


View this organization's DEI Strategies


Methodology


We are utilizing data collected by Candid to document and assess the DEI practices implemented by the organization. Nonprofit organizations are encouraged to fill out the Equity Strategies section of their Candid profiles to receive a rating.


Learn more about the methodology.

Constituent Feedback

100/100 points

30% of beacon score


This organization reported that it is collecting feedback from the constituents and/or communities it serves. Charity Navigator believes nonprofit organizations that engage in inclusive practices, such as collecting feedback from the people and communities they serve, may be more effective.


View this organization's Constituent Feedback Practices




Methodology


We've partnered with Candid to survey organizations about their feedback practices. Nonprofit organizations can fill out the How We Listen section of their Candid profile to receive a rating.


Learn more about the methodology.

Analysis and Research


Like the overall Encompass Rating System, the Culture & Community Beacon is designed to evolve as metrics are developed and ready for integration. Below you can find more information about the metrics we currently evaluate in this beacon and their relevance to nonprofit performance.


Constituent Feedback


Diversity, Equity, and Inclusion

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