Download to read offline
Uploaded byAmanda Sturgill
Methods for assessing charities
The document outlines methods and strategies for rating charities, focusing on financial health and accountability metrics such as tax returns, program expenses, and fundraising efficiency. It emphasizes the importance of board independence, conflict of interest policies, and transparency in salaries and financial reports. Various organizations, like Charity Navigator and the Better Business Bureau, provide guidelines for effective governance and accountability in charitable organizations.
More Related Content
Similar to Methods for assessing charities
Methods for assessing charities
- 1.
- 2.
- 3. FINANCIAL HEALTH Charities provideinformation • Tax Return • Form 990 Metrics • Program Expenses • Administrative Expenses • Fundraising Expenses • Fundraising Efficiency (spend less to raise more) • Accounting practices • Capacity (can they plan strategically)
- 4. ACCOUNTABILITY Is the boardindependent? Conflict of interest policy Are assest going towards correct purposes Do they do audits Documentation of meetings Records retention, whistleblower policies CEO and board salaries are transparent and consistently determined
- 5. CHARITY WATCH Program percentage– mission vs. overhead (fundraising and administrative • Target: 75% or higher to mission Cost to raise $100 • Target: less than $25
- 6. BETTER BUSINESS BUREAU Governanceand oversight Effectiveness Finances Solicitations
- 7. GOVERNANCE •Board control •Board size> 5 •Board meets regularly •90% of board is unpaid •Conflict of interest policy
- 8. EFFECTIVENESS •Board has effectiveness policy •Boardreceives regular reports
- 9. FINANCES • Spends atleast 65% on mission • No more than 35% on fund raising • Doesn’t hoard donations (no more than 3 times budget in savings) • Audit report available • Financial statements detail the expenses • Expense reports are accurate • Board approves budget yearly
- 10. SOLICITATIONS Meterials are accurateand not misleading Annual report publicly available • Mission statement • Summary of past year’s accomplishments • Roster of officers • Financial information Websites have same information as annual reports Donor privacy requests honored Cause marketing is clear, honest
- 11. IS IT MORETHAN MONEY?
- 12. OTHER ADVICE Do theprograms match the mission? Can the organization quantify its accomplishments? Is the mission supported by government or university research? Federations like United Way evaluate for you Look at the financials yourself. http://www.guidestar.org/