Charity Navigator, perhaps the largest online source for evaluating nonprofit groups, recently embarked on an overhaul to offer a wider, more nuanced array of information to donors who are deciding which organizations they might help.
Its reinvention coincides with the growing need of nonprofits to provide more — and broader — information about themselves and their impact in an effort to wean donors off a reliance on administrative-cost ratios and other financial metrics that have traditionally been used to assess charities.
Charity Navigator had been using a system of awarding one to four stars to charities based mainly on financial measures, like how much organizations spend on fund-raising and the ratio of their administrative costs to their overall revenue.
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Author: STEPHANIE STROM