As a donor, your desire to understand the charities you support is commendable. Transparency is essential in ensuring that your contributions lead to meaningful change in the community. This page will guide you through the Charity Navigator star ratings, helping you assess nonprofits effectively.
You will learn how to interpret the ratings and sub-scores offered by Charity Navigator, as well as what these ratings reveal about a charity's financial health, accountability practices, and overall effectiveness. Empower yourself with the knowledge to make informed decisions about your charitable contributions.
Step-by-step walkthrough
Visit Charity Navigator
Go to charitynavigator.org. Use the search bar to enter the name of the charity you're interested in, such as Ride Revival. Make sure you select the correct organization from the search results.
Review Overall Star Rating
Look for the overall star rating on the charity's page. Ratings range from 1 to 4 stars, with 4 stars indicating a high level of transparency and accountability in financial practices.
Examine Finance & Accountability Score
Scroll down to the Finance & Accountability section to view the sub-score. This score is critical, as it reflects the charity's financial health and governance practices, and is often the most relevant for donors.
Compare with Similar Organizations
Using the category filters, compare the charity to similar organizations. This will give you context and allow you to see how the charity stands relative to its peers in the same mission area.
Check for Advisories
Look for any flagged advisories regarding governance or financial concerns on the charity's page. This will alert you to potential issues that may affect your decision to donate.
Cross-Reference with BBB
For added assurance, cross-reference the charity's rating on the BBB Wise Giving Alliance at bbb.org/charity-reviews. This provides a second layer of verification regarding financial practices and transparency.
Positive signals (green flags)
✓ 4-Star Rating
✓ High Program Expense Ratio
✓ Positive Advisories
✓ Timely Filings
Warning signals (red flags)
⚠ 1-Star Rating
A charity with a 1-star rating may have significant financial-reporting issues, a low program expense ratio, or governance concerns, which raises red flags about their operations.
⚠ Low Program Expense Ratio
If the charity spends a majority of its budget on administrative costs instead of programs, it may indicate inefficiency and could be less effective in fulfilling its mission.
⚠ Advisory Flags
Doing a routine check for advisories is crucial—flags may indicate unresolved governance or financial issues that could impact the charity's integrity.
⚠ Infrequent Updates
If a charity has outdated financials or hasn’t filed required Form 990s, it could signal a lack of accountability and transparency which is vital for donor trust.
Tools + resources
- https://charitynavigator.org
- https://bbb.org/charity-reviews
- https://apps.irs.gov/app/eos
- https://projects.propublica.org/nonprofits
- https://afpglobal.org
- https://aafrc.org
Oakland state-level oversight
In Oakland, California, donors can also consult the state’s charitable registry through the California Attorney General’s office. The local Better Business Bureau (BBB) offers comprehensive charity reviews that can further assure donors of a charity's legitimacy. Additionally, the California Association of Nonprofits provides valuable resources and insights into the local nonprofit landscape, promoting transparency and best practices.