To accomplish this goal, we built the Encompass Rating System (beta V1) A pre-release of software that includes some of the look, feel, and function of the public release; however, design changes and functionality improvements are implemented with the help of testing., providing donors with a powerful tool to access comprehensive evaluations of organizational effectiveness for more than 150,000 nonprofits (and counting!). This is exponentially more than Charity Navigator has historically rated.
Donors are afforded peace of mind when considering supporting smaller and more recently established nonprofits, and these organizations are given a platform to promote their effectiveness to current and potential donors across multiple metrics, enhancing their ability to raise the funds they need to advance their mission. Star rated charities are not affected by this new system.
Encompass ratings are scored from 0-100 based on available data. A score of 75 or above indicates that a nonprofit is effective and transparent in the areas being assessed, based on Charity Navigator's criteria. These organizations will receive the 'Give with Confidence' attribution on their Charity Navigator pages.
The Encompass Rating System uses technology-supported automated methods and procedures to provide donors and nonprofits with four clearly-visualized indicators of organizational effectiveness - we refer to these as beacons.
At the launch of the Encompass Rating System, nonprofits will be rated on a score of 0-100 based on a Finances & Accountability beacon which consists of five metrics, providing some parity to the more robust financial and governance metrics that the Star Rating System evaluates. However, over the course of the next 18-24 months, the Encompass Rating System will begin to include additional measures of organizational effectiveness.
This beacon evaluates a nonprofit organization's financial health, including measures of stability, efficiency, and sustainability. We also include accountability and transparency practices to ensure integrity.
This beacon will evaluate available data on the results that a nonprofit organization achieves towards delivering on its stated mission.
This beacon will provide an assessment of the organization's leadership capacity, strategic planning, and the ability to readily innovate or respond to changes in constituent demand/ need to achieve the organization's mission.
This beacon will provide an assessment of the organization's people operations/HR, connectedness and engagement with the constituents and communities served, reputation, and Diversity, Equity, and Inclusion measures.
The Encompass Rating System will remain in betaA pre-release of software that includes some of the look, feel, and function of the public release; however, design changes and functionality improvements are implemented with the help of testing. until all four beacons have been launched.
While eligibility requirements for an evaluation through the Star Rating System disqualify less established and smaller nonprofits, the Encompass Rating System uses technology-supported automation to analyze the tax forms of 501(c)(3) organizations that have e-filed the IRS Form 990 for three consecutive years. The Encompass Rating System is based on a numerical score out of 100 and will live alongside the current Star Rating System.
The initial Finance and Accountability beacon is determined by five metrics:
As a result of the COVID-19 pandemic, demand for our services are at an all-time high. The assurance of organizational effectiveness that a rating from Charity Navigator provides will allow us to expand our support base and advance our mission to end food insecurity – we are enormously proud to have received the highest rating possible in the new Encompass Rating System.”