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Giving: Rating Charity Finances

by Penelope Wang

Money Magazine

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
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