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Essay on Charity Watchdog Groups

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In today’s economy, it is more important than ever to understand where your money goes, and how it is being used. Contributing money to a charitable organization is a great gesture, and donors deserve to know how the money they give is being used. Charity watchdog associations play a key role in not only keeping nonprofit organizations accountable, but in helping donors better understand how their donations are used. Three organizations that provide information on how donations are used are: Charity Guide (www.charityguide.org), Charity Navigator (www.charitynavigator.org), and the American Institute of Philanthropy (www. charitywatch.org). Each of these organizations provides resources for potential donors to determine whether they are …show more content…

Financials don’t always tell the entire story of a nonprofit, and this is where many of these watchdog groups are lacking. Watchdog groups also focus mainly on large, national nonprofits, and do not provide information on small regional or local nonprofits. Each watchdog group offers some of the same information about nonprofits, but they do differ in their approach: Charity Guide Charity Guide’s main goal is to promote volunteerism. They offer ways that donors can get involved in as little as 15 minutes or by dedicating an entire vacation to volunteering. The organization also assigns letter grades to nonprofits in a variety of categories. The criteria for a nonprofit to receive a “B” or higher are: openly sharing financial information, spend less the twenty-five dollars to raise one hundred dollars, and allocate at least 75% of money raised towards charitable programs and not fundraising and general administration. These guidelines help to establish how much of a donors money is actually being spent on the mission of a nonprofit. These ratings and the information provided should serve as a guide for potential donors, and not the sole information used when giving. Charity Guide does not supply how they determine these ratings outside of “rigorous analysis”. This may lead to an unfair or incomplete picture of a nonprofit because donors don’t know what information is taken into account when these ratings are assigned. Charity Guide’s

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