Our next topic of “Websites for Better Nonprofit Management” series is Charity Navigator.
The company was established in 2001 with the main goal to evaluate charities’ performance. The organization created a number-based and objective rating system to evaluate a charity’s success and improve its performance. The three areas that Charity Navigator is examining are: nonprofit’s Financial Health, Accountability & Transparency, and Results Reporting.
Based on the ratings, the donors can make an educated decision whether it’s worth it to give to the evaluated charity. Furthermore, Charity Navigator informs donors on the compensation of the nonprofit’s President/CEO, its financials, and verifies charity’s mission with the information included on their nonprofit’s tax return, website, marketing materials, annual reports, and other related paperwork.
Charity Navigator is a 501c3 organization itself that does not charge fees to the organizations it evaluates. Charity Navigator’s services and website information are provided at no cost to the end users. Donors can also take advantage of the organization’s website by finding some guidance on how to donate large items, top 10 best practices of savvy donors, tips for giving in times of crisis, and other interesting articles.
Other great information that Charity Navigator included on its website is the Top Ten Lists, such as: 10 of the Best Charities Everybody Have Heard Of, 10 Charities with the Most Giving Basket Donations, 10 Charities in Deep Financial Trouble, 10 Celebrity-Related Charities, and many other top 10 lists.
How can your nonprofit benefit from Charity Navigator? In order to meet the requirements for evaluation, your organization:
– Must have its 501c3 tax-exempt status approved (no private foundations or religious organizations)
– Show records of filing f990 for the past 7 years (those 501c3 that file nonprofit tax returns f990-EZ and f990N are not eligible for evaluation)
– Must raise at least $500,000 from public support with total revenues to be more than $1,000,000 for the 2 most recent fiscal years; etc.
Please follow the link to find additional information on the requirements for evaluation: Charity Navigator.