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Dugan's 'A Course Correction Of Charity Navigator'

Decent Essays
In 2001 John (Pat) Dugan created a resource of potential donors, aiding them in the decision in where to give. Criticism has increased as Charity Navigators influence has grown. Many contest their ability to evaluate so many diverse organizations and their methodology. Charity Navigator is seen as an organization that promotes the idea “that donors should favor charities that keep their overhead costs low.” Some critics think donors should completely ignore Charity Navigator. Others feel that with some change the organization can be beneficial. Gradually, Charity Navigator has decreased the importance on overhead by assessing accountability and transparency policies. They are also introducing new efforts into “results reporting”. Some are…show more content…
The group continues to succeed at their mission, but various nonprofit leaders question their methods. They are calling for change. A change in way they evaluate charity finances and to spread the message that charities can suffer if they don’t spend enough on overhead costs. Critics suggest that the organization is steering donors in the wrong direction. In response Dugan asks, “What is the best way for individuals who don’t have a sophisticated understanding of nonprofit operations to select charities? In the absence of third-party evaluators, how can they be sure they are giving to a sound organization?” Critics recommend that more emphasis should be put on how mow much of an impact the nonprofit has made in its’ mission. Unfortunately, very few charities document impact in a methodical way. It is also costly to hire a third-party for…show more content…
The charity has four stars but refuses to advertise it. They say that the rating tells donors nothing about whether the charity is having an impact. Water for People has developed its own system to report its activities, finances, and impact. They also suggest that more charities do the same in effort to educate donors themselves. In 2014 Charity Navigator had a revenue of $1.8 million, 69 percent coming from users of their site. They plan to double their staff to 28 and add 3 fundraisers. The group is also looking to collaborate with another organization designed to help donors evaluate charities. Charity Navigator is in motion for change. Critics question whether they are enough or the right changes.
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