You are viewing this organization's new Charity Navigator profile page. To view the legacy version, click here. Star Rated Report. Financial Performance Metrics. Fundraising Expenses. Fundraising Efficiency. Working Capital Ratio. Program Expense Growth. Liabilities to Assets.
Program Expense. Program Expense Ratio Administrative Expenses 5. Fundraising Expenses Liabilities to Assets Ratio Working Capital Ratio 1.
Program Expense Growth 6. Governance Charity Navigator looks to confirm on the Form that the organization has these governance practices in place. More The presence of an independent governing body is strongly recommended by many industry professionals to allow for full deliberation and diversity of thinking on governance and other organizational matters.
Our analysts check the Form to determine if the independent Board members are a voting majority and also at least five in number. Less No Material Diversion of Assets More A diversion of assets — any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft — can seriously call into question a charity's financial integrity.
This metric will be assigned to one of the following categories: Full Credit: There has been no diversion of assets within the last two years. Partial Credit: There has been a diversion of assets within the last two years and the charity has used Schedule O on the Form to explain: the nature of the diversion, the amount of money or property involved and the corrective action taken to address the matter.
In this situation, we deduct 7 points from the charity's Accountability and Transparency score. No Credit: There has been a diversion of assets within the last two years and the charity's explanation on Schedule O is either non-existent or not sufficient. In this case, we deduct 15 points from the charity's Accountability and Transparency score. More Audited financial statements provide important information about financial accountability and accuracy. Partial Credit: The charity's audited financials were prepared by an independent accountant, but it did not have an audit oversight committee.
In this case, we deduct 7 points from the charity's Accountability and Transparency score. No Credit: The charity did not have its audited financials prepared by an independent accountant. More Making loans to related parties such as key officers, staff, or Board members, is not standard practice in the sector as it may divert the charity's funds away from its charitable mission and can lead to real and perceived conflict-of-interest problems.
This practice is discouraged by sector trade groups which point to the Sarbanes-Oxley Act when they call for charities to refrain from making loans to directors and executives. And the IRS is concerned enough with the practice that it requires charities to disclose on their Form any loans to or from current and former officers, directors, trustees, key employees, and other "disqualified persons.
Furthermore, it is problematic because it is an indicator that the organization is not financially secure. Less Documents Board Meeting Minutes More An official record of the events that take place during a board meeting ensures that a contemporaneous document exists for future reference.
Charities are not required to make their Board meeting minutes available to the public. As such, we are not able to review and critique their minutes. For this performance metric, we are checking to see if the charity reports on its Form that it does keep those minutes. In the future, we will also track and rate whether or not a charity keeps minutes for its committee meetings.
Less Distributes to Board Before Filing More Providing copies of the Form to the governing body in advance of filing is considered a best practice, as it allows for thorough review by the individuals charged with overseeing the organization. The Form asks the charity to disclose whether or not it has followed this best practice. If the charity has not distributed its Form to the board before filing, then we deduct 4 points from its Accountability and Transparency score.
Less Compensates Board More The IRS requires that any compensation paid to members of the charity's governing body be listed on the Form Furthermore, all members of the governing body need to be listed whether or not they are compensated. It is not unusual for some members of the board to have compensation listed.
The executive director of the organization frequently has a seat on the board, for instance, and is compensated for being a full time staff member. However, it is rare for a charity to compensate individuals only for serving on its Board of Directors. Although this sort of board compensation is not illegal, it is not considered a best practice.
Policies Charity Navigator looks to confirm on the Form , or for some metrics on the charity's website, that the organization has these policies in place. More Such a policy protects the organization, and by extension those it serves, when it is considering entering into a transaction that may benefit the private interest of an officer or director of the organization.
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