How can I interpret a non -profit rating?
non -profit assessment are used to assess non -profit organizations based on a wide range of measurements, including financial data, transparency and efficiency. To interpret the evaluation, it is important to understand how each of these factors is weighted and to assess which of them are personally the most important to you. The evaluation can be used to choose where to donate, based on which organization meets your standards rather than any standards of any rating agency.
Historically, non -profit assessment was based on simplistic financial conditions, such as fundraising costs, the percentage of funds used for programming and administrative costs. These are important considerations, because the less it is spent on fundraising and administrative support, the more you can spend on front lines that really help people. Experts agree that most non -profit organizations should be an annual budget for fundraising less than 25% of the funds and at least 60% of the total expenditure of the organization should be spilled for its charity programs. Just because the finances of non -profit organizations are highly evaluated does not mean that it is a good or effective charity organization.
Transparency is an important part of non -profit assessments because it allows independent verification. Accounting of non -profit organizations differs from one organization to another. Not every charity organization uses the same criteria to determine what qualifies as the cost of fundraising compared to administrative costs. Non -profit organizations provide their budgets, tax returns and other key documents publicly available rating agencies, grants manufacturer and individual donors opportunity to see the numbers and make mathematics yourself. If the organization agrees with an external audit, it is a good sign that the financial evaluation is accurate and deserved.
obtaining a non -profit organizationOn its financial situation can create an incomplete image. That is why charity watchdogs and other rating organizations began to include finer measurements that may indicate how well non -profit work does their job. This means not only efficiently to manage its financial resources and willing to share information about their business practices and financial status, but also to provide services in accordance with its mission in a timely and effective way. Dear these factors, it can balance the conditions for organizations that have to spend more money at overhead costs can still earn a competitive assessment by being excellent in what they do.
The most robust non -profit assessment takes into account the growth and expansion of the charity organization, which is usually signs of success. They also consider their ability to set and achieve adequate goals and provide specific measures of their success. To get the brightest image of a non-profit value, find the rating that provides this CattleDetails. Remember, however, that no rating can be objective or complete. If you notice irregularities, do not be afraid to contact the non -profit organization directly and ask questions.