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Tuesday, December 6, 2016

One of "America's Worst Charities" Closes Down

Photo by Hitchster
At Charity Navigator, our work to guide intelligent giving means not only highlighting effective organizations but also informing donors about organizations which are performing poorly. Shiloh International Ministries was one such organization. Over the 13 years in which we evaluated the organization, only once did it receive anything above a 0-star rating, and then, in 2005, it only earned 1 star.

Shiloh International Ministries, highlighted by the Tampa Bay Times as one of America’s Worst Charities, has now closed down. The organization, which according to the article has also operated under the names Handicapped Children's Services of America, American Veterans Network, Adolescent AIDS Foundation, and Help Hospitalized Children Fund, is no longer listed on the IRS Business Master File, which lists all exempt organizations registered with the IRS.

While there are many reasons for this organization’s chronically low rating, one factor was the high amount spent by the organization on fundraising. In the organization’s most recent rating, Shiloh International Ministries spent 81.9% of its total expenses on fundraising, 13.2% on administrative expenses and just 4.7% on program activities - which go toward fulfilling an organization’s mission.  Only 2 of the over 8,000 charities that we rate spends that little on programming and only 5 spend that much on fundraising.

The organization also failed to follow many industry best practices, including not having a CEO compensation process, not reporting CEO compensation on its annual Form 990, filed with the IRS, and having no independent voting board members.

We hope that during this holiday season, you find Charity Navigator a helpful resource in making your giving choices and are able to avoid organizations which won’t use your donation wisely!

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1 comment:

Fred said...

It can also be noted that some comments posted under some charities appear to be purposely intended to falsely impugn those charities.

One just read appears to invert the actual, published information on the charity project funding and fundraising.

This issue of disinformation has now become extremely common, and unless moderation of facebook commentors can be instituted, it sows falsehood which can damage the work of excellent charities. It might even destroy them.