Update: F-Rated Charities Receive Top Ratings & Seals
F-Rated Charities Receive Top Ratings & Seals
CharityWatch has identified many F-rated charities that receive top ratings and seals from other raters; Charity Navigator and Candid, respectively.
The above chart contains select examples of charities to which CharityWatch has assigned “F” grades as of 10/7/2024. See Our Process for more information about how CharityWatch’s grades are calculated. Charity Navigator’s ratings and Candid’s seals were retrieved from those websites between 9/10/2024 and 9/23/2024 and reflect each charity’s current rating or transparency seal as of the date retrieved. Visit charitywatch.org, charitynavigator.org and guidestar.org to view the most current ratings and profiles published on each website.
CharityWatch’s ratings are based on an in-depth analysis of a charity’s single or consolidated audited financial statements and the tax filings of the nonprofits included in those statements, and are conducted by degreed accountants with a deep understanding of charity financial reporting. Our process includes an analysis of in-kind goods and services, which charities often overvalue. We analyze related party transactions and follow Generally Accepted Accounting Principles (GAAP) by eliminating them from our end calculations of Program % and Cost to Raise $100. We also analyze “joint costs,” in which charities are allowed to report joint educational / fundraising campaign expenses as program expenses even when all the money spent goes to for-profit professional fundraising companies.
Conclusion
When encountering charity ratings, pie charts, and program percentages in charity fundraising and marketing materials or elsewhere, donors are encouraged to be cautious and take steps to understand how this information is computed and from where it is derived before relying on it to make giving decisions.