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    Rating the charity raters

    Over the past few years, nonprofit information providers — or charity raters — have made an effort to break away from the reliance on overhead ratios. Devex took a look at three organizations currently engaged in vetting charities to find out what the future holds for results-based evaluations.

    By Kelli Rogers // 05 April 2016

    Nonprofit evaluator Charity Navigator launched in 2002 by asking the largest charities in the United States for their three most recent Form 990s — an informational tax form required of nonprofit organizations. Only about a third of the charities they asked handed them over.

    Fast forward almost 15 years, and most charities willingly publish their 990s — which give the Internal Revenue Service an overview of activities, governance and detailed financial information — on their websites, Sandra Miniutti, Charity Navigator’s vice president of marketing, told Devex.

    The 990 requires organizations to outline their previous year’s accomplishments to justify maintaining their tax-exempt status. Charity raters have historically honed in on financial transparency and what percentage of the budget goes to overhead expenses when they evaluate organizations.

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    About the author

    • Kelli Rogers

      Kelli Rogers@kellierin

      Kelli Rogers has worked as an Associate Editor and Southeast Asia Correspondent for Devex, with a particular focus on gender. Prior to that, she reported on social and environmental issues from Nairobi, Kenya. Kelli holds a bachelor’s degree in journalism from the University of Missouri, and has reported from more than 20 countries.

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