The Charity Rater, LLC

The Charity Rater

Sunday 05th of September 2010

The Charity Rater gives individual donors like you the knowledge and tools you need to evaluate a charitable organization before giving. More than a rating system, this is a toolkit for good donorship.

Home - Test Your Knowledge - How The Charity Rater Works - Rate a Charity

WELCOME

The rating system's format is similar to a survey with approximately 17 multiple choice questions. The donor uses information on the charity's website to answer each question. The process takes approximately 10 - 20 minutes to complete. Your investment of time will help you become a better, more empowered donor.

Note: Because users are not currently asked to sign in, there is no way to save work and come back to it later. Please use the "back" button at the bottom of the page NOT the browser arrows so your work is not lost. This problem will be addressed once all users are required to register before using the system.

What you will need to rate an organization: The rating system works best when the donor has access to the charity's website. If there is no website a second option is the annual report or talking to the organization directly.

What should NOT be rated with this system: This system is not designed to be used with foundations or with umbrella organizations. An example of an umbrella organization would be Care International. If you are interested in rating Care look instead at a member organization, such as Care USA, Care Netherlands, or Care Kenya.

General Information

This name will appear on the report you receive at the end.

Name of organization you are considering for a donation *

Does the agency have a website? Yes No *

Please copy and paste the website address and open it in a second window for reference

What source of information will be used to answer the questions in this rating system? Annual report, phone call with staff, etc...

Where does the charity do most of its work?

The location of the organization's will activate or inactivate future questions in this system.

(Choose the answers that are the most applicable)

The charity works in the country where you live

The charity works in just one or two other countries

The charity is multinational and works in many different countries

Mission Statement

Why this is important: The mission statement provides the core principles of the aid organization. The activities of the organization should be aligned with the mission statement. If the activities are not clearly related to the mission it raises some questions: is the mission wrong; is the organization chasing easy funding sources; does the organization not have a clear concept of why it exists?

Where to find it: On the homepage, in the “about us” section, or on the first page of the annual report.

If you do not agree with the mission statement, you should not donate, regardless of how good the organization sounds.

blog post - Read an aid agency's mission statement before giving

Is the work of the of the organization in line with the mission statement?

(Choose only one)

All activities are in line with the mission statement

Some activities are in line with the mission statement but other activities don't fit with the mission statement

The mission statement is so unclear it could include any kind of work

Most or all of the activities are not in line with the mission statement

I can't answer this question because I can't find the information

Financial Information

Why this is important: Contrary to popular belief, looking at the percentage an organization spends on administration costs is a poor way to evaluate a charity. Organizations with very low administration costs can do poor quality work or provide help that is not actually needed or wanted. The pressure on charities to keep administration costs low can lead to worse, not better, aid practices.

It would be far wiser for donors to require aid organizations to be transparent about their finances. The more transparent charities are the more donors, aid recipients/pariticipants, and the aid world can hold them accountable for good fiscal practices.

Where to find it: Use either the site map or download the annual report. An audit or financial review should be included near the beginning of the financial report.

Article - Don't judge an aid organization by the amount of money they spend on administration costs

Podcast - Administration Costs

Is the budget broken down by type of work, location, and type of expense? (Choose all that apply)

The budget is broken down by type of work (education, health, livelihoods)

The budget is broken down by location (city, state/province, country)

The budget is broken down by type of expense (staffing, materials, trainings)

The budget is very vague with no meaningful breakdown of expenditures

This question does not apply because the organization has been established less than two years

I can't answer this question because I can't find the information

How to tell the difference between an audit and a financial review

The audit opinion is a single page letter signed by the accountant with either three or four paragraphs. It will reference GAAP (Generally Accepted Accounting Practices) and will have a phrase such as "fair and accurate representation" in either the second or third paragraph. An audit will have one of four possible opinions: unqualified, qualified, adverse, or disclaimer. Everything else is a financial review. Charities less than two years old may not have yet conducted an audit or financial review.

More on the importance of evaluations

Article - Would you hire a contractor or doctor whose work was never evaluated?

One or more evaluations per country for international charities - OR - one or more evaluations per type of aid for local charities

Only one or two evaluations

There are no evaluations from the past three years

Does the organization provide concrete examples of how they improved their practices based on evaluations? (Choose only one)

The organization provides concrete examples

The organization makes vague references to how they improved

No information was provided

Needs assessment and project design

Why this is important: Needs assessments determine what the real needs are, whether other groups are already working to meet that need, and which type of program can best meet the need. Even all-volunteer organizations should conduct a simple assessment before planning an activity. Without a needs assessment, donor money could be wasted on unnecessary or inappropriate activities.

Where to find it: In general charities do not share needs assessments; donors must look for clues in the activity description. If an organization does several different activities, choose one of them and use the description to answer the questions in this section.

Has the organization checked to see what other organizations and the local government are doing? (Choose all that apply)

Article - Good Needs Assessments are Critical to Good Programs

Information on what other organizations are doing is provided

Information on what the local government is doing is provided

There is no information about other organizations or government projects

I can't answer this question because I can't find the information

Has the organization checked with aid recipients to see what they want? (Choose only one)

Article - Hamburgers for Hindus

The organization clearly shows that they have consulted with aid recipients

The organization has not shown that they consulted with aid recipients

This question does not apply because there are no clear aid recipients

I can’t answer this question because I can’t find the information

Do they refer to any standards or research for the type of work they are doing? (Choose all that apply)

Article - Get to Know Industry Standards and Best Practices

The organization provides links and information on the standards it follows

The organization provides links to research related to the project

I can’t answer this question because I can’t find the information

Accountability

Why this is important: The common assumption that even bad aid is better than no aid is incorrect. Bad aid can leave aid recipients/participants worse off than they were before. There needs to be a feedback mechanism in place so that both aid recipients/participants and others can have their complaints addressed if there are problems with the charity's work.

Where to find it: Use either the site map or the search function to look for terms such as "complaints", "whistle blower", "feedback", or "accountability to beneficiaries"

Is there a clear process that whistle blowers from within or outside the organization can use to report problems? (Choose only one)

A clear process is provided for whistle blowers

There is no clear process for whistle blowers to follow

I can’t answer this question because I can’t find the information

Does the organization describe their system for addressing aid recipients/participants complaints or problems? (Choose only one)

Click here to check whether an international charity is HAP certified

Article - Beggars can't be choosers, but are they beggars?

The organization is HAP (Humanitarian Accountability Partnership) certified - for international organizations only

The organization clearly describes their system addressing aid recipient/participaints complaints or problems

This question does not apply because there are no clear aid recipients

I can’t answer this question because I can’t find the information

Legal Registration

Why this is important: Any charity that is not legally registered in a country is not bound by the laws or regulations that govern charities. The government cannot take legal action if the charity is misusing funds or doing questionable work.

Where to find it: Look on the sidebars, header or footer of the websites and on the homepage. Legally registered aid organizations will have a registration number or will state that they are a registered “501 (C)(3)” or similar organization (in the US). Finding registration information for charities operating abroad can be more difficult; generally aid organizations do not share this information. Look at one country description for larger organizations or on the homepage for smaller organizations. For federated charities--such as World Vision or the Red Cross where each country is a separate charity working under an umbrella organization--Google the organization in the country where they are working. The website is often available in several major languages.

Is there proof that the organization is legally registered in the country in which they are soliciting donations? (Choose only one)

The organization is legally registered in the country in which they are soliciting donations

There is no proof that the organization is legally registrated

I can’t answer this question because I can’t find the information

Does the organization have legal registration or a letter of support from the local government in the country(s) where they work? (Choose only one)

The organization is legally registered in the country(s) where they work

The organization has a letter of support from the local government in the country(s) where they work

I can’t answer this question because I can’t find the information

Governing Board

Why this is important: Decisions made by the governing board impact all levels of the organization and affect how, when, and where programs are implemented. Poor decisions by the board can lead to poor programs in the field.

Where to find it: Look for a current member list either in the “Who We Are” section, on the sitemap, or in the annual report.

Does the board have more than five members with diverse professional backgrounds and representatives from the aid recipients/participants they serve? (Choose all that apply)

Article - Size does matter when it comes to an aid organization's governing board

The board has five or more members

Members of the board have diverse professional backgrounds

Some board memebers represent the aid recipients/partiants

None of the above

I can’t answer this question because I can’t find the information

Does the organization do any of the following types of aid?

If the organization provides any of the following types of aid there will be a few additional questions to answer.

(Choose all that apply)

Child sponsorship

Orphanages

Disaster relief

Microfinance

Police or fire department charities

Shipping donated goods overseas

Shipping donated medicine overseas

Shipping donated equipment sent overseas

Shipping food aid overseas

Volunteers / Voluntourism overseas

The charity does not provide any of the types of aid listed above

If this page is blank it is because there are no additional questions for the particular types of assistance you selected. Please click "next" to finish rating the organization.

Volunteering/ Voluntourism Overseas

Volunteers / Voluntourism

What's important to understand: Volunteer trips have become very popular both domestically and abroad. Unfortunately, this has led to many instances where projects are developed to meet the needs of the volunteer, not the aid recipients. There are also many stories of voluntourism (volunteer + tourism) companies using questionable business practices. Voluntourism projects should not be developed simply because they are a good fit for volunteers, but instead should be part of a larger aid effort. Programs should use local businesses for their meals, lodging, and travel to support the local economy.

Where to find it: Answers to the question about supporting the local economy should be found in the "how we work" section or by looking at an actual trip description for travel details. The question of whether the volunteers are doing work that could be done by locals will require finding a description of the work done by volunteers and then thinking through whether someone local would likely have the same skills.

Are volunteers doing work that could easily be done by local people?

(Choose all that apply)

Article: Guideline#2 for Volunteering Overseas: Don't Volunteer to do What a Local Person Could be Paid to Do

Volunteers do not work that local people could do

Volunteers are doing work that local people could do

I can’t answer this question because I can’t find the information

Is money spent in ways that support the local economy? (Choose all that apply)

Article: Why do we so Often Give Aid in Ways that Don't Support the Local Economy

Most of the paid staff are from the country receiving assistance

Voluntters pay to stay in locally run accomodations

Volunteers pay to eat at locally run restaurants

Volunteers use local transportation

I can’t answer this question because I can’t find the information

Is the organization working on a stand-alone project designed primarily to meet the needs of volunteers?

(Choose only one)

Article: What can go Wrong When Trying to do Right

Volunteer work is part of a larger project

It is unclear which came first - the volunteers or the project

Volunteers work on a stand-alone project designed primarily to meet their needs

I can’t answer this question because I can’t find the information

Sending Donated Goods Overseas

Donated Goods

What's important to understand: Donated goods often are not appropriate for the local culture, climate, and religion. Overseas shipping, customs, and overland shipping can be far more expensive than purchasing goods locally.

Where to find it: Answers to these questions should be found in the section that describes how the donated goods program works, in one of the pages linked to from that page, or in the country description section. If the answers aren't in these sections, they are probably not easily accessible anywhere else on the website.

Can the goods be purchased locally?

(Choose only one)

Article: Six Questions You Should Ask Before Donating Goods Overseas

Proof is provided to show that the goods cannot be purchased locally

The goods can be purchased locally

I can’t answer this question because I can’t find the information

Are the donated goods appropriate for the local climate, religious customs, and way of life?

Article: The Worst In-kind Donations

(Choose all that apply)

Goods are appropriate for the climate

Goods are appropriate for the local religious customs

Goods are appropriate for the local way of life

Goods do not appear to be appropriate for the local climate, religious customs, or way of life

I can’t answer this question because I can’t find the information

Is it clear who will pay for overseas shipping, customs, delivery and distribution?

(Choose all that apply)

It is clear who will pay for overseas shipping

It is clear who will pay customs fees

It is clear who will pay for delivery and distribution

I can’t answer this question because I can’t find the information

Donated Machinery

Donating medical and other equipment

What's important to understand: It is always better to purchase equipment locally to ensure that it can be repaired or replaced. It is also important to verify that the person or organization receiving the equipment have the funding and resources to use and maintain the machinery.

Where to find it: Answers to these questions should be found in the section that describes how the donated machinery program works, in one of the pages linked to from that page, or in the country description section. If the answers aren't in these sections, they are probably not easily accessible anywhere else on the website.

Can the machinery be purchased locally?

Article: Why do we so Often Give Aid in Ways that Don't Support the Local Economy?

(Check only one)

Proof is provided that the machinery cannot be purchased locally

The machinery can be purchased locally

I can’t answer this question because I can’t find the information

Did a local organization request the donation?

(Check only one)

The donation is based on a request from a local organization

The donation was not requested by a local organization

I can’t answer this question because I can’t find the information

Can the machinery be maintained, repaired, and replaced locally?

Article: Six Questions You Should Ask Before Donating Goods Overseas

(Choose all that apply)

Replacement parts are available locally

Local people have the ability and tools to fix the equipment

The recipients can pay for repairing or replacing broken equipment

I can’t answer this question because I can’t find the information

Medicine Donations

Donating Medicine:

What's important to understand: Do not raid your medicine cabinet after a disaster. There are issues in each major disaster with disposing of donated medicine that was inappropriate or unusable.

Where to find it: Answers to these questions should be found in the section that describes how the donated medicine program works, in one of the pages linked to from that page, in the country description section, or the section describing the disaster response. If the answers aren't in these sections, they are probably not easily accessible anywhere else on the website.

Are medicine labels and instructions in the local language?

Article: Donating Medicine

(Choose only one)

Medicine labels and instructions are written in the local langugae

There is no proof that the medicine labels or instructions are written in the local language

I can’t answer this question because I can’t find the information

Will the medicine expire within the next year?

(Choose only one)

The expiration date is more than one year away

The medicine has already expired or will expire soon

I can’t answer this question because I can’t find the information

Did a local healthcare facility request the donation?

(Choose all that apply)

The donation was requested from a local healthcare facility

There's no proof that the donation was requested by a local healthcare facility

I can’t answer this question because I can’t find the information

Food Aid

Food Aid

What's important to understand: Hunger may not be caused by a lack of food in a country. In the US grocery stores are filled with fresh, frozen, canned and boxed food yet millions of Americans face hunger and food insecurity. Reasons for this include unemployment, rising food costs, and too great a distance to grocery stores. There may be other solutions such as food stamps, better public transportation, or building closer marketplaces.

Where to find it: Answers to the questions should be located in the section where the organization describe their food aid program or it should be on one of the pages linked to from that page. If the information is not available there it's likely not easily available anywhere else on the site either.

Is the food purchased from the local area or from a neighboring country?

Article: Should the Maersk Alabama have been There in the First Place?

(Choose only one)

The majority of food is purchased from the local area

The majority of the food is purchased from a country outside the region

I can’t answer this question because I can’t find the information

The majority of food is purchased from a neighboring country

Will other means be developed for people to get food in addition to a feeding program?

(Choose only one)

Other means will be developed for people to access food

Only a feeding program exists

I can’t answer this question because I can’t find the information

Child Sponsorship

Child Sponsorship

What's important to understand: The percentage of each donation that goes directly to the child varies by organization. Be wary of any organization promising 100% of the donation goes to the child. Programs need to have local staff monitoring and administering the program to prevent problems and abuse. Also look for evidence that the organization protects the privacy of the child for their own safety. Sponsorship organizations should actively coordinate with other organizations to ensure that sponsorships are evenly distributed and so that there are no duplication of sponsorships.

Where to find it: Answers to these questions should be found on the page where they describe their sponsorship program, the pages linked to from that page, or on the country description page.

Is it clear what percentage of the donation goes directly to the child's family?

(Choose only one)

It is clear what percentage of the donation goes to the child's family

It is unclear what percentage of the donation goes to the child's family

The child does not directly receive any of the donation

I can’t answer this question because I can’t find the information

Is there staff or an office present in the country where the children are sponsored?

(Choose only one)

There is staff or an office in country to monitor the sponsorships

There is no evidence of staff or an office located in the country

I can’t answer this question because I can’t find the information

Is it clear how in-country administration costs are paid for?

(Choose only one)

The organization clearly shows how in-country administration costs are paid for

There is no information about how in-country administration costs are paid for

I can’t answer this question because I can’t find the information

Police and fire department charities

Police and Fire Department Charities

What's important to understand: The US Better Business Bureau advises caution in funding charities that support policemen, firefighters and sheriff departments. There have been many cases where the organization spends the majority of the donations on staff salaries or where the money is used for lobbying or other activities not mentioned on fundraising material. Check out the organization before donating.

Where to find it: Answers to the questions should be located their annual report or in the section where they describe the assistance they provide. If it's not easily found in either of these two places it's probably not easily accessible anywhere else either.

Is there a clear breakdown of how money was spent last year?

(Choose only one)

There is a clear breakdown as to how money was spent last year

There is no clear breakdown as to how money was spent last year

I can’t answer this question because I can’t find the information

Does the breakdown of how the money was spent last year match last year's financial statement?

(Choose only one)

The breakdown matches last year's financial statement

The breakdown does not match last year's financial statement

The program claims 100% of the funds go to program costs but does not show how it covers administration/fundraising costs

Disaster Relief

Disaster Relief

What's important to understand: It is easy to raise money after highly publicized disasters. This makes it appealing for many organizations to do disaster relief projects even if they don’t have the skills or ability to respond quickly or adequately. There are hundreds of organizations that respond to each large disaster. Shop around for the best one before donating. Organizations should have experience and expertise in the programs they are proposing, after a disaster is not the time to try something new. Nonprofits already in the area are in a much better position to respond quickly and at a lower cost.

Where to find it: Answers to whether the organization worked in the area before the disaster should be found on the commonly used "Where we work" link. If the country is listed click on it to view previous projects. Answer to the questions of prior expertise should be found on the commonly used "what we do" link. Look for descriptions of projects to see if they match the relief work the organization is proposing.

Was the organization working in the country before the disaster struck?

Article: DOs and DON'Ts of Disaster Donations

(Choose only one)

The organization was already working in the area when the disaster struck

The organization was not working in the area before the disaster struck

I can’t answer this question because I can’t find the information

Does the agency have experience and expertise in the type of aid they are proposing?

Article: Choosing Organizations to Donate to After the Haiti Earthquake

(Choose only one)

The agency has experience and expertise

The agency does not have prior experience and expertise

I can’t answer this question because I can’t find the information

Microfinance

Microfinance

What's important to understand: As with credit cards, it’s important to read the fine print in microfinance programs. Most large projects use Micro Finance Institutions (MFI) which are local lending institutions in the country itself. While the charity might not charge interest, the MFI could charge up to 30%. Donors need understand how the program works and determine whether they themselves would agree to the terms. It is also important to look for what other financial services they provide as loans are not always the best solution for everyone. Organizations should provided a range of financial services including savings accounts and insurance plans.

Where to find it: Answers to the questions should be located in the section where the organization describes how their microfinance program works or it should be on one of the pages linked to from that page. If the information is not available there it's likely not easily available anywhere else on the site either.

Article: What is Microfinance?

Does the organization provide other services such as savings accounts or insurance?

Article: Four Questions You Should Ask Before Funding a Microfinance Project

(Choose only one)

The only financial service the organization provides is microfinance

The microfinance program is offered in conjunction with other financial services

I can’t answer this question because I can’t find the information

Does the organization vet and monitor the microfinance institutions (MFI)?

(Choose all that apply)

The organization describes how it vets local MFIs

The organization describes how it monitors MFIs

I can’t answer this question because I can’t find the information

Orphanages

What's important to understand: Many children in orphanages are not actually orphans but are from very poor families. Orphanages are one of the most expensive ways to care for children but are easier to fund than other methods of supporting the child because they appeal to donors.

Where to find it: Answers to these question on legal registration should be found in the footer of the website, on the "who we are page", or the "history" page. Answers to the question on whether the orphanage is actually needed should be found on the "what we do" page, "our partners" page, or "history" page. The answers to the stable environment questions should be found by looking on the "who we are" page or the "our staff" page. Also try typing in "volunteer" into the search engine to see if they have a policy on volunteers or volunteer opportunities listed.

Does the organization prove they are overseen by the government and follow child protection laws? (Choose all that apply)

Article: How to Evaluate and Orphanage

The charity provides proof they are regulated by the government

The charity provides proof that the follow child protection laws

I can’t answer this question because I can’t find the information

Does the organization provide assistance to help children stay with family or relatives before placing them in an orphanage? (Choose only one)

Article: Does Funding Orphanages Create Orphans?

The organization provides support to families or relatives to help them care for the children

The organization only provides support to orphanages

I can’t answer this question because I can’t find the information

Staff and volunteers that interact with the children work at the orphanage for at least a year (Choose only one)

Article: Hug-an-orphan Vacations

Staff and volunteers that interact with the children work in the orphanage at least a year

Many volunteers/staff are brought to the orphanage for short stays

I can’t answer this question because I can’t find the information

Advertising

Why it matters: The only information most people have about charities comes from the organization's advertisements and first few pages of its website. It is important that organizations do not purposefully misrepresent their work to attract more donors.

Where to find it: At this point in time you have spent enough time on the organization's website to know if the information highlighted on the website and in advertising matches what you found while digging deeper. If the organization's information doesn't match, does this appear to be due to an accidental omission or a purposeful misrepresentation?

Does the charity's advertising and the first few pages of their website inform or misinform donors when compared with information found further within the website? (Choose only one)

Blog post - Deceptive Advertising Hurts the Entire Aid Industry

The first few pages accurately represent what is found within the body of the website

Some information is clearly stated while other information is not included

The advertising or first few pages do not reflect other information on the website which misleads donors about their work

Name of organization you are considering for a donation

Overall Score

Mission Statement

Financial Information

Evaluations

Needs Assessments

Accountability

Legal Registration

Governing Board

Volunteering Overseas

Sending Donated Goods Overseas

Donating Machinery

Donating Medicine

Food Aid

Child Sponsorship

Police and Fire Department Charities

Disaster Relief

Microfinance

Orphanages

Advertising

Red Flags

Any item listed below is a concern donors should take into account when making funding decisions.

Most or all of the activities are not in line with the mission statement

The organization has not shared their financial review/audit with donors

The financial audit received a qualified opinion

The financial audit recieved an adverse opinion

The financial audit received a disclaimer of opinion

There are no evaluations available from the past three years

The organization has not shown that they consulted with aid recipients/participants during the needs assessment or planning stages

There is no proof that the organization is legally registrated

The charity's governing board is not as large, diverse, or representative as it should be

Volunteers are doing work that local people could do

Volunteers work on a stand-alone project designed primarily to meet their needs

The donated goods can be purchased locally

The donated goods do not appear to be appropriate for the local climate, religious customs, or way of life

The donated machinery can be purchased locally

The donation was not requested by a local organization

There is no proof that the medicine labels or instructions are written in the local language

The medicine has already expired or will expire soon

There's no proof that the donation was requested by a local healthcare facility

There is no evidence of staff or an office located in the country to administer the sponsorships

There is no information about how in-country administration costs are paid for

The budget breakdown does not match last year's financial statement

The agency does not have prior experience and expertise in the work they are proposing

Many volunteers/staff are brought to the orphanage for short stays

Did the organization you are considering for donation receive a lower score than you think they deserved simply because they didn't share information with donors? Call or write the organization and let them know they didn't provide you with the information you need to make an educated funding decision. Organizations will only become more transparent when donors, like you, require and reward it.

Print or write down the organization's score before you leave this page. After you click finish the information will no longer be accessible. Once users are required to sign in they will be able to view scores from all the organization's they've previously evaluated.

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In the News

NYT - Teaching Americans What Haiti Needs
CBC Radio - 3 Dos and Dont's of Disasters
CNN - Cash is the best donation after disaster, aid groups say

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