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Go for Gold…And Platinum! Charity Ratings Informational Seminar

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Go for Gold…And Platinum! Charity Ratings Informational Seminar Go For Gold…and Platinum! Charity Ratings Informational Seminar Training Program Developed by: YOUR PART‐TIME CONTROLLER, LLC Copyright © 2019 by Your Part‐Time Controller, LLC All rights reserved Agenda During today’s seminar, we will share: An overview of the primary watchdog organizations The criteria they use to evaluate nonprofits Why these ratings matter (and why improving them can increase your fundraising potential) Steps to take now to improve your organization’s charity profile rating Go For Gold...and Platinum! Overview Charity watchdogs are organizations that collect and share information about nonprofit organizations • They use this information to evaluate and rate your organization • These ratings are available to the public • Charity watchdogs are nonprofit organizations themselves! Our goal is to help you understand what data they are sharing so your organization can improve its rating Go For Gold...and Platinum! Overview Top charity watchdog organizations • GuideStar (by Candid.) (www.guidestar.org) • CharityWatch (www.charitywatch.org) • Charity Navigator (www.charitynavigator.org) • BBB (Better Business Bureau) Wise Giving Alliance (www.give.org) Go For Gold...and Platinum! What do these companies have in common? Go For Gold...and Platinum! Overview: GuideStar 24 9M • Originally founded as Philanthropic Research, Inc. • Data comes from public sources, other organizations, and nonprofits themselves • GuideStar has more than 200 partner sites and applications • Users can access data for free, or purchase a subscription with advanced filters and benchmark tools Go For Gold...and Platinum! Overview: GuideStar Sample Peer Analysis Go For Gold...and Platinum! Overview: GuideStar Nonprofits can update their GuideStar profile for free • GuideStar differs from other charity watchdogs because it does not rank organizations • Organizations self‐report to earn “Seals of Transparency” • Levels include Bronze, Silver, Gold, and Platinum Go For Gold...and Platinum! This Photo by Unknown Author is licensed under CC BY Overview: CharityWatch 25 600 Years Charity Reports •Originally founded as the American Institute of Philanthropy •Fewer ratings but more in‐depth analysis •Prides itself on exposing nonprofit abuses •Budget size about $600K •Access to charity ratings is free Go For Gold...and Platinum! Criteria: CharityWatch General focus on evaluating: • 501(c)(3) tax exempt organizations • Large charities with $1M or more in public support • Those in existence for 3 years or more Final score based on two calculations: • Program % • Cost to raise $100 Top Rated charities spend: • 75% or more of budget on programs • $25 or less to raise $100 Go For Gold...and Platinum! Criteria: CharityWatch CharityWatch Report includes sections on: • Ratings & Metrics • Governance & Transparency • Analysts’ Notes • Salaries • Donor Alerts & Articles Go For Gold...and Platinum! Overview: Charity Navigator • Founded to provide a source of unbiased and transparent info to donors • Nation’s largest evaluator of charities using data from the IRS and charity websites • Less than 20 full‐time employees • Registration is free • Users can create a “Giving Basket” and donate to multiple nonprofits Go For Gold...and Platinum! Criteria: Charity Navigator To be rated, a charity must have: • 501(c)(3) tax exempt status • Revenues of at least $1M for 2 consecutive years • 7 years of Form 990 filings Two evaluation categories: • Financial Health • Accountability & Transparency Go For Gold...and Platinum! Criteria: Charity Navigator Rating Profile •A Charity Search will yield a profile that includes a rating (up to four stars) and other performance metrics Go For Gold...and Platinum! Criteria: Charity Navigator Rating Profile, continued •The profile will include a chart with a graph of the overall score Go For Gold...and Platinum! Overview: BBB Wise Giving Alliance 43 11K Years Charity Reports • Founded in 1975, it’s the oldest of the ratings organizations • Produces charity reports, evaluating data against a series of charity standards • Information used is provided by the organizations being evaluated • No charge for an evaluation but charities can choose to pay a license fee to use the BBB Accredited Charity Seal • Charity searches are free Go For Gold...and Platinum! Criteria: BBB Wise Giving Alliance Evaluation basics: • BBB Wise Giving Alliance evaluates national charities • Local or regional charities can request evaluation by the BBB serving their area • Evaluation covers 20 standards in 4 categories: • Governance and Oversight (5 standards) • Measuring Effectiveness (2 standards) • Finances (7 standards) • Fundraising and Informational Materials (6 standards) Go For Gold...and Platinum! Criteria: BBB Wise Giving Alliance Go For Gold...and Platinum! Overview: Other Watchdogs Go For Gold...and Platinum! Charity Watchdogs: Summary Charity Watchdogs differ slightly in their approach Publish ratings Drive giving to based on their nonprofits rated as assessments: effective: • CharityWatch • GlobalGiving • Charity Navigator • GiveWell • BBB Wise Giving • GreatNonprofits Alliance • Giving What We Can Go For Gold...and Platinum! Why Ratings Matter • Donors evaluate nonprofits using information they find on charity watchdog websites • Stakeholders (like volunteers, institutional funders, and partnering organizations) use ratings to benchmark organizations against their peers • Board Members use ratings to assess whether to volunteer • Future Nonprofit Leaders use ratings to assess whether to apply to key positions Go For Gold...and Platinum! Why Ratings Matter There is a strong correlation between increased transparency and increased giving: • 65% of donors would be influenced to give more if they had greater insight into the impact of their giving Source ‐ https://www.fidelitycharitable.org/docs/overcoming‐barriers‐to‐giving.pdf Go For Gold...and Platinum! Why Ratings Matter Would your organization like to increase donations by 50% or more? • Transparent nonprofits saw an increase of 53% more in contributions than organizations that were less transparent • Researchers compared nonprofits that earned a GuideStar Seal of Transparency with those that did not Source ‐ https://www.thenonprofittimes.com/accounting/accountants‐prove‐transparency‐ boosts‐giving/ Go For Gold...and Platinum! Why Ratings Matter Having an up‐to‐date charity profile is one way to increase transparency. The reward can be greater access to donors! For example: • Listing on giving portals powered by GuideStar • AmazonSmile • Fidelity Charitable • Network for Good • Vanguard Charitable • Listing on the “Giving Basket” powered by Charity Navigator and Network for Good Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings It’s all about TRANSPARENCY! • Don’t underestimate the potential of filing a Form 990 • Utilize your website • Earn a GuideStar Seal of Transparency Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings The Form 990 is the most‐used source of data to analyze nonprofits. Don’t underestimate its potential. • Consider filing even if not required • Pay attention to key areas used by charity watchdogs: • Program Service Accomplishments • Governance, Management, and Disclosure • Compensation • Statement of Functional Expenses Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings Form 990 – Program Service Accomplishments When possible, provide quantitative data that illustrates your organization’s impact such as # served or % increase in services Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings Form 990 – Governance Having policies for conflict of interest, whistleblower, document retention, and compensation will raise your organization’s charity profile rating Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings Form 990 – Compensation Charity watchdogs do not like to see paid board members, especially when they are voting board members Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings Form 990 – Statement of Functional Expenses The infamous “3 columns.” Does your charity solicit for donations? If so, charity watchdogs expect to see amounts in the “Fundraising” column. Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings The best‐rated charities have websites that provide evidence of their: • Impact – how programs and activities are making a difference • Support Opportunities – donor and volunteer opportunities • Community Engagement – event calendars and activities • Accountability and Transparency – links to the most recently filed Form 990 and audit Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings Claim your Nonprofit Profile on GuideStar and update it to one of the top levels of transparency Bronze Silver Gold Platinum Provide basic Provide Provide Share info such as audited answers to 5 quantitative primary financial impact metrics contact, leader, statements questions board chair, and program info Go For Gold...and Platinum! Steps to Improve Charity Profile Ratings Go for Gold and….Platinum! • Earning a GuideStar Seal of Transparency ensures your organization is listed on GuideStar giving portals • 78% of organizations who received donations through GuideStar's website held seals • The average donation for Gold and Platinum seal holders was 11% higher than the combined average donation for non‐Seal holders and those with only Bronze or Silver • Be sure to update your information at least once a year Go For Gold...and Platinum!
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