Rotary Foundation Ranks High with Charity Watchdogs

Posted by Cathy Sullivan on Mar 03, 2013

In an environment of increasing competition and eroding trust, nonprofits not operating their organization efficiently and transparently are feeling the heat, now more than ever, thanks to the numerous organizations rating charities. People should and do expect that when they donate, their contributions will be put to good use. Thanks to the numerous resources available online, evaluating a charity is now easier than it once was. Many services rate charities; prominent among them are the Wise Giving Alliance, the nonprofit arm of the Better Business Bureau; Charity Navigator, a North Jersey-based nonprofit that rates 5,500 of the best known U.S. charities and compiles easy-to-browse “top 10” lists in various categories;

and the American Institute of Philanthropy, which rates far fewer organizations but has been called “the pit bull of watchdogs” by the New York Times for its in-depth analyses.

The basic measure of an organization’s efficiency is how much of its contributions go directly to programs, and how much go to administrative expenses. The American Institute of Philanthropy says that a highly efficient charity should spend 75 percent on programs. Charity Navigator’s data indicates that, of the organizations it evaluates, 7 in 10 spend at least 75 percent of their budget on programs, and 9 in 10 spend 65 percent. To meet Better Business Bureau standards of accountability, 65 percent of a charity’s total expenses should go to programs, and fundraising costs should not exceed more than 35 percent of contributions.

The Rotary Foundation Scores High!

The Rotary Foundation continues to provide financial support for a wide range of humanitarian and educational programs initiated by local clubs and districts around the world. The Foundation has earned a grade of A+ from the American Institute of Philanthropy , a top rating of four stars from Charity Navigator, Charity Navigator and full accreditation from the Wise Giving Alliance of the Better Business Bureau. Wise Giving Alliance

The Rotary Foundation focuses more than 90 percent of its spending on programs, far exceeding the threshold of 75 percent that independent charity-rating services view as a measure of high efficiency.

(Article written by Penny Jett for District 7780)