CharityWatch FAQ

 

General FAQ Help FAQ Charities FAQ

 

 

General FAQ

What is CharityWatch?

Why do I need CharityWatch?

Won’t a charity provide me with all the information I need to make an informed giving decision?

Why is CharityWatch’s information an indispensable tool for informed donors?

How can I join CharityWatch?

Who funds CharityWatch?

Does CharityWatch sell, rent, or exchange its members’ names and contact information with other organizations or businesses?

How does CharityWatch decide which organizations to evaluate and rate?

What is the benefit of receiving the Charity Rating Guide & Watchdog Report?

Why doesn't CharityWatch make all of its information available on the Internet for free?


What is CharityWatch?
CharityWatch, formerly known as American Institute of Philanthropy, is a nonprofit charity watchdog and information service.


Why do I need CharityWatch?
Because your charitable dollars are too precious to waste on organizations that do not spend your money wisely. CharityWatch is not afraid to take a strong stand about the practices of specific charities and provide information that some charities would rather not disclose. CharityWatch carefully reviews each charity’s financial records, cross checking information from state and federal government filings. The financial picture we provide is often quite different from other sources of charity information that are less stringent, or simply repeat information reported by the charity in its tax form, rather than conducting a thorough and independent review. CharityWatch provides you with the important knowledge that will help you make funding decisions with greater confidence.


Won’t a charity provide me with all the information I need to make an informed giving decision?
A charity that wants your donation has little incentive to criticize itself. It may choose not to reveal true but unflattering information about itself. Also, the financial information that charities are willing to make easily available to donors is often unclear and incomplete. You need an independent watchdog that can objectively analyze a charity’s finances and management practices.


Why is CharityWatch’s information an indispensable tool for informed donors?
CharityWatch assigns letter grade ratings and provides other statistics on the financial performance of approximately 600 major American charities. These are organized by category, including Animals, Environment, Cancer, Crime Prevention, Child Protection, Senior Citizens, and more. Rather than simply repeating information gleaned from tax filings or offered by the charities themselves, CharityWatch conducts in-depth analyses of audited financial statements, annual reports, IRS Form 990 filings and other data to give you a clear picture of how a charitable organization actually uses its funding. We provide information on the percentage of funds each charity spends on its charitable purpose, its cost to raise $100, whether it holds massive asset reserves, and an overall letter grade rating ranging from “A+” to “F.” Before you send a donation to a specific charity, you can now consider how well it spends your dollars on the programs you intend to support.


How can I join CharityWatch?
Individual membership is available for a donation of $50 per year and corporate membership is available for a donation of $250 per year. Additional contributions in any amount are appreciated, and help to further our charity watchdog information services. Annual membership allows you access to all of CharityWatch’s ratings, analyses, and other information on charities.


Who funds CharityWatch?
CharityWatch is funded by the public—not special interests, advertisers, charities or associations. CharityWatch depends on the support of individuals like you for memberships and contributions. Donations are tax-deductible as permitted by law.


Does CharityWatch sell, rent, or exchange its members’ names and contact information with other organizations or businesses?
No. CharityWatch has never sold, rented or exchanged information about its members and has no plans to do so.


How does CharityWatch decide which organizations to evaluate and rate?
At CharityWatch we focus on quality over quantity. The in-depth level of analysis we perform as part of our charity evaluations is time-intensive and does limit the number of groups we are able to review. Currently, CharityWatch rates approximately 600 charities. We generally focus on evaluating large charities that receive $1 million or more of public support annually and that are of interest to donors nationally. As a charity watchdog organization, our charity selection process is donor-driven. We strive to cover many of the groups that CharityWatch members are most interested in. CharityWatch does not accept requests from charities that ask to be rated, nor do we charge charities to be listed in our publication or web site, or for the right to publicize our findings. CharityWatch does not report on churches, synagogues, mosques, political action committees (PAC's), fraternal clubs, colleges, or local institutions such as hospitals and museums. CharityWatch does report on the separate human and social welfare organizations of religious groups. The current list of organizations rated by CharityWatch can be found here.


What is the benefit of receiving the Charity Rating Guide & Watchdog Report?
The Charity Rating Guide & Watchdog Report provides more limited information than is available on charitywatch.org. CharityWatch (CW) is happy to provide a paper copy of our publication, the Charity Rating Guide & Watchdog Report, to current members with limited or no Internet access, to libraries, or to members who prefer reading a hardcopy publication. The hardcopy Guide is published twice per year and contains CW's most updated information as of the time of publication.

Charities in the Guide are organized by category and CW provides the following information for each, if applicable: Name; an "open/closed book" transparency benchmark; contact phone number; program and fundraising efficiency percentages; a letter grade rating; the top three salaries range at the charity; and symbols that indicate whether a charity receives significant government funding or is organized as a nonprofit unable to accept tax-deductible contributions. The paper Guide contains charts listing charities whose ratings have been downgraded due to high assets, a Top 25 Salaries chart reflecting the highest salaries at the approximately 600 charities rated by CW, and select articles from charitywatch.org.

Charitywatch.org contains all this information in a searchable format, along with more extensive and up-to-date information on the charities we rate than can be offered in the paper Guide since it is updated on a continuous basis rather than twice per year, and is not limited by the space constraints of a paper publication.


Why doesn't CharityWatch make all of its information available on the Internet for free?
We fund our in-depth research on charities from modest membership contributions. We feel that this is a very small price to pay to receive objective and independent ratings that are untarnished by special interests. We are a nonprofit organization with over 95% of our revenue coming from individual membership contributions. We do not receive government or large private foundation grants, nor do we accept any advertising whatsoever. We also do not charge the charities we rate to be listed in our paper publication or web site, nor do we charge charities for the right to publicize our findings. Relying on small contributions from the public allows us to be fiercely independent, which is critical for any watchdog organization. We hope our information will help you with your charitable giving decisions and that you will help support our research through CharityWatch Membership.

 

Help FAQ

How do I login to CharityWatch’s web site?

How do I become a CharityWatch Member?

What additional information do I have access to once I log in?

How do I know when my CharityWatch Membership expires?

I forgot my username and/or password. What do I do?

How do I obtain a receipt or confirmation e-mail for my membership contribution?

How do I obtain access to CharityWatch's full web site for my library?

What does Membership to CharityWatch include if I do not have Internet access?


How do I login to CharityWatch’s web site?
Type your username and password into the fields provided on the Login page to access your account. If you are a CharityWatch Member who has never logged in to our new site, please visit our Claim code page for instructions on setting up your account. If you are not a CharityWatch Member please become a member then follow the instructions in your donation receipt to login to your account.


How do I become a CharityWatch Member?
A membership contribution of $50 or more gives you one year of online access to all of our nearly six hundred A+ to F charity ratings. This includes CharityWatch Reports detailing the results of our financial analyses of charities, such as letter grade ratings, program and fundraising ratios, governance & transparency benchmarks, analysts' notes, salary information, articles & media, and more. To become a Member please visit our Membership page then follow the instructions in your donation receipt to login to your account.


What additional information do I have access to once I log in?
Once logged in Members have unrestricted access to the ratings, governance benchmarks, salaries data, and analysts notes for all of the approximately 600 charities rated by CharityWatch. Members also have access to CharityWatch's chart of High Asset charities. 


How do I know when my CharityWatch Membership expires?
Login to your account to check the status of your membership using your username and password to view your expiration date and renew your membership if it is nearing expiration. If you are a CharityWatch Member who has never logged in to our new site, please visit our Claim code page for instructions on setting up your account. Once set up you may log in and view your Membership expiration date.


I forgot my username and/or password. What do I do?
Your username is the e-mail address you used when you set up your online account. If you know your username but forgot your password, you may reset your password yourself on the Login page

If you forgot both your username and your password please Contact CharityWatch for assistance.


How do I obtain a receipt or confirmation e-mail for my membership contribution?
If you donated online through the charitywatch.org site you will automatically receive an email receipt for your donation which you may use for tax purposes. It will also contain instructions for creating your account if you are a new Member. The confirmation email may take several minutes to reach your inbox. If you do not receive it please check your “bulk mail” or “spam mail” folder. 

If you donated via paper check CharityWatch will send you a hardcopy donation receipt via U.S. Postal mail. These receipts are processed and mailed twice per year, so please allow several months to receive your receipt. If you require a receipt sooner please Contact us.


How do I obtain access to CharityWatch's full web site for my library?
CharityWatch regrets that we are unable to provide online access to restricted areas of our site to libraries at this time. However, we make our hardcopy publication, the Charity Rating Guide & Watchdog Report (Guide), available to our valued library Members. To obtain the Guide for your library, please become a Member by mailing a check payable to CharityWatch in the amount of $50 to:

 

CharityWatch


Attn: Membership


PO Box 578460


Chicago, IL 60657


What does Membership to CharityWatch include if I do not have Internet access?
Some of our valued Members do not have reliable access to the Internet. We make our hardcopy publication, the Charity Rating Guide & Watchdog Report (Guide), available to our valued Members who lack reliable Internet access or who prefer to read a hardcopy publication.

To receive the paper Guide please become a Member by mailing a check payable to CharityWatch in the amount of $50 to:


CharityWatch


Attn: Membership


PO Box 578460


Chicago, IL 60657

 

Your one-year Membership includes the paper Guide, published twice per year. Please allow up to six weeks to receive your first Guide. Charities in the Guide are organized by category and CW provides the following information for each, if applicable: Name; an "open/closed book" transparency benchmark; contact phone number; program and fundraising efficiency percentages; a letter grade rating; the top three salaries range at the charity; and symbols that indicate whether a charity receives significant government funding or is organized as a social welfare nonprofit. The paper Guide contains charts listing charities whose ratings have been downgraded due to high assets, a Top 25 Compensation packages chart reflecting the highest charity executive salaries (at charities rated by CW), and select articles from charitywatch.org.

 

Charities FAQ

How do I apply to have my charity rated by CharityWatch?

How does CharityWatch decide which charities to rate?

How often does CharityWatch update a charity’s rating and other information?

How do I request an update of my organization's rating?

How do I view my organization's rating information online on CharityWatch's web site?

How do I understand how CharityWatch calculated my organization's letter grade rating? Why are CharityWatch's calculations different from those of my organization?

My charity is Top-Rated by CharityWatch. How do I obtain a copy of the Top-Rated Seal to use in my charity's promotional materials and web site? Does CharityWatch charge charities to use its Seal?


How do I apply to have my charity rated by CharityWatch?
CharityWatch is a watchdog organization, not a listing service or promotional site for charities. Charities cannot apply to be rated by CharityWatch.


How does CharityWatch decide which charities to rate?
The in-depth level of analysis required for our charity evaluations is time-intensive and does limit the number of groups we are able to review. We add between 15 to 20 charities per year to our list of rated charities. Currently, CharityWatch rates approximately 600 charities.

We generally focus on evaluating large charities that receive $1 million or more of public support annually and that are of interest to donors nationally. As a charity watchdog organization, our charity selection process is donor-driven. We strive to cover many of the groups that CharityWatch members are most interested in. CharityWatch does not accept requests from charities that ask to be rated, nor do we charge charities to be listed in our publication or web site, or for the right to publicize their ratings.

CharityWatch does not report on churches, synagogues, mosques, political action committees (PAC's), fraternal clubs, colleges, or local institutions such as hospitals and museums. CharityWatch does report on the separate human and social welfare organizations of religious groups. The current list of organizations rated by CharityWatch can be found here.


How often does CharityWatch update a charity’s rating and other information?
General information about a charity is updated on charitywatch.org as we become aware of a change. This includes changes to a charity's name, address, web site, phone number, or names a charity uses to solicit potential donors. Rating, governance, and salary information for a charity is generally analyzed and updated by CharityWatch every other fiscal year. Charities whose letter grade ratings are prone to significant fluctuations, charities with a history of governance issues, and charities with high assets, are typically updated every fiscal year. 


How do I request an update of my organization's rating?
CharityWatch (CW) typically updates a charity's rating every other fiscal year. We make exceptions and update ratings more frequently when we are aware that an update will result in a significant grade change. Updates of ratings that will not change significantly are typically deprioritized and deferred to the following fiscal year. 

Please review our Criteria for information about factors that impact CW's ratings. If you are a Controller, CFO, or other charity official who believes CharityWatch's rating of your organization will change significantly based on our evaluation of more current financial information, please contact us to request an update. Due to the expertise and extensive time required to thoroughly respond, CW will only respond to detailed inquiries submitted by an official within the accounting or finance department with expertise in the financial reporting of your organization.

Requests should be e-mailed to financials@charitywatch.org with “Rating Update Request” in the subject line to help us direct your inquiry to the appropriate staff member. Requests should include a brief explanation as to where improvements in spending efficiency have been made relative to the fiscal year currently rated by Charitywatch. Visit the Financial Documents section of the Rating & Metrics tab for your charity to view the documents CW uses to rate your organization, and send a complete copy of all of these documents with your rating update request.   

When we receive your written request, one of our analysts will perform a preliminary assessment to determine whether or not your organization's grade will actually change significantly. If yes, most often we will then complete a full analysis and prioritize your organization's rating accordingly. Due to the time-intensive nature related to processing rating update requests, please allow several weeks for a response.


How do I view my organization's rating information online on CharityWatch's web site?
If your charity is Top-Rated by CharityWatch its rating information is typically viewable on our web site without logging in. If your charity is not Top-Rated you typically must be logged in to view your charity's rating information. We do not charge a charity for information about its rating. If you would like information about only your organization's current letter grade rating, please use our Contact page to email your request and we will respond via email. If you instead would like access to your organization's rating information online, along with all of the charity ratings and other information on CharityWatch's site, you may become a Member. Charities receive the same Membership as any other donor who becomes a Member of CharityWatch.


How do I understand how CharityWatch calculated my organization's letter grade rating? Why are CharityWatch's calculations different from those of my organization?
CharityWatch's ratings are based on a thorough analysis of a charity's tax forms, audited financial statements, and annual reports. Certain adjustments may be made to reported figures in the process of CharityWatch's in-depth evaluation of an organization's financial activities. For more information on CharityWatch's criteria and methodology, please refer to the Criteria section of our web site.

If after reading the rating criteria your organization has more detailed questions as to how your group's current rating was calculated, you may forward a written inquiry from a manager within your organization's accounting or finance department that details your specific questions to aipmail@charitywatch.org, or via U.S. Mail to:

 

CharityWatch


Attn: Analyst


PO Box 578460


Chicago, IL 60657

 

Due to the expertise and extensive time required to thoroughly respond, CW will only respond to detailed inquiries submitted by an official within the accounting or finance department with expertise in the financial reporting of your organization. This requirement also prevents multiple inquiries from different individuals within the same charity. We regret that we cannot respond to inquiries from all individuals/departments.


My charity is Top-Rated by CharityWatch. How do I obtain a copy of the Top-Rated Seal to use in my charity's promotional materials and web site? Does CharityWatch charge charities to use its Seal?
CharityWatch believes it is a conflict of interest to charge a charity it reviews to promote its rating. Charities that qualify to use the Seal may do so free of charge. Please visit our Top-Rated page to see if your charity is Top-Rated. If so you may use the Top-Rated Seal to promote your organization's rating subject to the Top-Rated Seal Terms of Use.

If you already have a username and password to login to the Top-Rated Seal page, please Login to access image files and instructions for using the Seal.

To update the contact information of the person your organization has designated to receive CharityWatch Top-Rated Seal information, send an e-mail to topratedseal@charitywatch.org. For a faster response, please type "CharityWatch Seal—Contact Information Update" in the subject line so we may direct your e-mail to the appropriate staff member. Be sure to include the new contact person's first and last name, job title, direct phone number, and e-mail address in your message, along with the name of your organization.

 

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