CharityWatch is unable to provide a rating for the Disabled American Veterans Auxiliary National Headquarters (DAVA) based on its fiscal year ended 12/31/2024 due to the organization's small size. DAVA reports that it formed in 1922, according to its IRS tax Form 990. CharityWatch's calculations of Contributions and Total Expenses for the organization for fiscal 2024 are $186,491 and $902,801, respectively. The financial reporting of small charities is often not comparable to that of larger ones for several reasons, including Economies of Scale: Economies of Scale Economies of scale occur when the size of an organization's operations allow it to operate more efficiently. As an organization grows it costs it less (per unit) to produce its goods or services due to its overhead and other fixed costs being spread over a larger volume of output. For example, a small charity that serves 500 poor people per year may need to pay $8,000 for its annual financial audit. A larger charity that serves 3,000 poor people per year may need to pay $10,000 for its annual financial audit. The first charity spent $16 per person served for the overhead cost of its audit, while the second spent far less at only $3.33 per person served. Charity rating methods suitable for larger organizations often cannot be fairly applied to much smaller charities given that the latter lack the economies of scale necessary to operate at the same level of efficiency. Small charities that assist underserved populations, that are fulfilling an unmet need, or that are new or in the process of scaling up to a larger size may still be worthy of donors' support despite CharityWatch's inability to rate them due to this comparability issue.
In addition, CharityWatch analyzed the DAVA's assets and liabilities in an effort to understand how long it could continue to operate at 2024 spending levels without raising any additional contributions or other revenue. More information about how this figure was computed can be found by visiting CharityWatch's Our Process page. DAVA's Net Fund Balance of $10,701,733 was divided by CharityWatch's calculation of Total Expenses of $902,801. This results in a computed figure for years of available assets of just under 12 years.
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