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The team from Charity Navigator, the nation's largest independent charity evaluator and leading donor advocate, shares their thoughts on emerging nonprofit-sector issues and offers tips to better inform your intelligent giving decisions.

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Wednesday, August 24, 2022

Accountability and Finance Metrics and the Rating Unification: What Nonprofits Need to Know

As we announced this summer, Charity Navigator will be unifying its two rating systems (CN 2.1, also known as the Star Rating System, and the Encompass Rating System) this fall. Rather than offering two distinct rating systems, one holistic system will account for all aspects of a nonprofit’s operations that fall within the four-beacon Encompass framework. All eligible nonprofits will receive a 0-4 Star rating based on the aggregation of their earned beacons, not just on the finance, accountability, and transparency metrics that underpinned our legacy system. 

Tuesday, August 23, 2022

Giving During Economic Downturns

With rent and inflation on the rise, we are looking at what is likely to be a sustained economic downturn. As people struggle to make ends meet amid rising costs, charities providing essential services, including food and housing, will see an increase in the needs of the communities they serve. History suggests that even as demand grows, economic downturns reduce charitable donations. In 2008, charitable giving dropped 7 percent in inflation-adjusted dollars, followed by another 6.2 percent decrease in 2009. Giving didn’t begin to rebound until 2010, with just a 1.3 percent increase.