spending

How Your Charity Measures Up

Donors now have more tools to ensure their money is well spent.

A new rating system makes it easier to verify that your donations are going to a worthy charity. Charity Navigator has long been the arbiter of charities’ bona fides. Its new 2.0 rating system now measures accountability and transparency as well as financial health.

Seventeen new gauges were added, such as whether a charity has independent board members, a conflict-of-interest policy or a board audit committee. CEO Ken Berger says the ratings help people assess the risk of donating to a particular charity. “If an organization doesn’t have these policies and practices, then even if it’s financially healthy there’s a higher risk that your contribution may not be spent as you desire.”

When Charity Navigator applied its new system to the nearly 5,500 charities it evaluates, results were mixed. Scores changed for half of the organizations. For 60% of those, the change was positive, and there was an 8% increase in the number of charities with a three-star (out of four) or better rating. But 40% of the 1,200 top-rated charities saw their ratings drop.

Most Popular

The Perfect Storm for Retirees
retirement planning

The Perfect Storm for Retirees

Today’s retirees could face a perfect storm because they are living longer and spending more time in retirement, while at the same time losing access …
April 18, 2021
The Wrong Way to Achieve Wealth
personal finance

The Wrong Way to Achieve Wealth

For some down-to-earth, basic advice on money and life, I have a book to recommend: “Your Total Wealth: The Heart and Soul of Financial Literacy.”
April 17, 2021
Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs
Coronavirus and Your Money

Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs

People have lots of questions about the new $3,000 or $3,600 child tax credit and the advance payments that the IRS will send to most families in 2021…
April 14, 2021

Recommended

Wealthy Should Act Now to Prepare for Bernie Sanders’ Estate Tax Proposal
estate planning

Wealthy Should Act Now to Prepare for Bernie Sanders’ Estate Tax Proposal

Anyone with an estate of $3.5 million or more should think about getting in line now to talk to an estate professional, because offices everywhere are…
April 18, 2021
Worried about Your Child’s Inheritance If They Divorce? A Trust Can Be Your Answer
estate planning

Worried about Your Child’s Inheritance If They Divorce? A Trust Can Be Your Answer

You may love your son-in-law or daughter-in-law now, but that could change down the road. So, if you don’t want your money going to your kid’s future …
April 16, 2021
What You Need to Know about College 529 Savings Plans
529 Plans

What You Need to Know about College 529 Savings Plans

Do you know how much you’re able to contribute or what the funds could be used to pay for? How about how contributing affects your taxes? Check out th…
April 14, 2021
Getting the Best of Both Worlds from an Irrevocable Trust
estate planning

Getting the Best of Both Worlds from an Irrevocable Trust

Irrevocable trusts open the door to important tax strategies, but they mean the loss of control of the assets held in the trust … or do they? Today’s …
April 5, 2021