In this new era of accountability, nonprofits and other charitable-based organizations are being evaluated with new scrutiny. Funders want to know how their money is being used and whether they are getting the most “bang for the buck”. These three websites are taking innovative approaches to nonprofit evaluation and rating:
1) Charity Navigator, an independent charity evaluator, assesses the financial health, accountability and transparency of 6,000 of America’s largest charities based on a 4-star scale. It also provides publicly available information for another 1.6 million unrated nonprofits registered with the IRS.
2) Give Well conducts in-depth research aiming to determine how much good a given
program accomplishes (in terms of lives saved, lives improved, etc.) per dollar spent. They evaluate both international and U.S. charities and present a list of “outstanding and underfunded” charities.
3) Bright Funds approaches charity evaluation like Wall Street investors evaluate mutual funds and other investment opportunities. The funds are in five categories: environment, water, poverty, education and health. People can join the program, select which funds and how much each fund makes up their individual “portfolio” and then establish how much they wish to give.