From the Desk of Valerie Schaeffer - Charity Navigator

Charity Navigator

In hard economic times, it’s important to know how every penny is spent. Charitable giving is no exception. When you give to a charity, you want to know exactly how well the charity uses your money and where it goes. If you want to find out how your money is used, check out Charity Navigator (http://www.charitynavigator.org/)

According to its website, Charity Navigator “has become the nation’s largest and most-utilized evaluator of charities.” Founded in 2001, Charity Navigator is a non-profit 501(c)(3) organization that rates over 5,000 charities in the United States. Charity Navigator rates charities in two areas: how the charity handles daily responsibilities and also its potential of long-term health. With these to areas assessed, Charity Navigator gives each charity a rating of zero to four stars.

When you search for a charity, you will be shown current rating with organizational efficiency and capacity for growth. In addition, revenue and expenses are listed for the previous year. You will see the contact information for the charity, including email and website information.

Also, the current executive director and his or her compensation are listed, along with what percentage of the expenses that compensation takes. This is an important factor. For example, a director’s salary of $100,000 may seem high, but if it’s it only one percent of expenses, that’s a good sign that your money will go towards charitable programs.

In contrast, if a director makes $100,000 and that salary is 30% of expenses, there’s a good chance your donation may be going towards the take-home pay of the director. That’s no necessarily a bad thing, as long as you know that possibility exists and you can make better choices in donating money.

In addition to rating charities, Charity Navigator also includes articles, tips and studies in the area of philanthropy (charitable giving). Plus, Charity Navigator includes top ten lists of various charities. Some examples of top ten lists include the top ten most requested charities, the top ten charities drowning in administrative costs, and the top ten charities regularly in debt.

Charity Navigator also maintains a blog and a list of Hot Topics, which are current issues in philanthropy, such as giving during an economic recession and a holiday gift giving guide.

You can register for free and log in to maintain a list of your own charities you are supporting or interested in supporting. You can also comment on a charity’s rating and/or performance.

In addition, you can donate money to Charitable Navigator (remember, they too are a non-profit). To keep informed, you can sign up for the site’s monthly e-newsletter and follow it on Facebook and Twitter.

To check out Charity Navigator, go to http://www.charitynavigator.org/