We
get this question from time to time from new users of our site. Here’s the
answer:
On
every charity’s ratings page, under the section titled, Financial Performance
Metrics, is a metric called Program Expenses. That shows you how much of the
charity’s budget was allocated to the programs and services that it exists to
provide.
For
example, Michael
J. Fox Foundation for Parkinson's Research spent 90.8% of its budget on
its programs and services. This is a good figure. Of the 5,500 charities we
rate, the vast majority at least 75% on programs, 10% or less on fundraising
and 15% or less on administrative costs.
For
those that are new to our site, you should also know that all of the metrics on
the charity ratings pages are clickable. And when you do click on them, the
resulting pop-up page will give you a definition of the metric and show you how
we calculate it. This
is what you’d see if you clicked on Program Expenses.
If
you want more details about how we rate charities, then you can find all of
that under the Methodology
or FAQ
sections of our site.
Also,
if you are new to Charity Navigator then you might enjoy watching the recording
of our December
webinar. The focus of the presentation was our tips
for year-end giving, but the Q&A portion offers a brief overview of our
site. We are planning to do another webinar in the coming months which will
focus entirely on how to use our site and interpret the ratings data. Be sure
to subscribe
to our monthly newsletter
so you will receive an invitation to participate in the webinar.
As a 501 (c) (3) organization itself, Charity Navigator depends on public support to help donors make informed choices. Please consider investing in the future of Charity Navigator by making a donation today. Donate now >>
1 comment:
I always wondered what the percentage of the money raised went to the actual cause. Never knew it would be so easy to find out! Thanks!
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