These days, a charity’s performance gets more attention than ever. Independent organizations have developed sophisticated rating systems to evaluate financial health, accountability (a charity’s willingness to explain its actions to its stakeholders) and transparency (a charity’s willingness to publish and make available critical data).
Today’s donors are well educated about these standards. In fact, they often use evaluators’ reviews—which are publicly available on the Internet—to decide which charities to support. The best known and most influential organizations that monitor U.S. charities are Charity Navigator, the BBB Wise Giving Alliance and GuideStar. Meeting these organizations’ financial, accountability and transparency standards is a key part of earning donors’ trust—and it could make all the difference for your foundation’s success.