NEADS Charity Navigator Rating – What It Means for Donors

February 9, 2018

14 consecutive years… 15 consecutive years… We update the stats every year, but we’re proud to say our most recent rating puts us at 16 consecutive 4-star ratings from Charity Navigator. In fact, of the more than 9,000 organizations currently evaluated by Charity Navigator, NEADS is one of the organizations that has received the most consecutive 4-star ratings.

Charity Navigator evaluates two dimensions of a charity’s operations that a prospective donor can consider when selecting a charity to support – financial health and accountability and transparency – as well as an overall rating that combines both scores. The ratings are intended to show donors how efficiently a charity will use their support, how well it has sustained its programs and services over time, and its level of commitment to accountability and transparency. Charity Navigator considers 3- and 4-star organizations to be highly rated and believes that these organizations have shown that they meet, if not exceed, industry standards and are committed to maintaining the best financial and governance practices.

WHAT’S INCLUDED IN A RATING. Charity Navigator uses IRS Form 990s to calculate the financial dimension of the ratings and evaluates seven key areas: program expenses, administrative expenses, fundraising expenses, fundraising efficiency, program expense growth, working capital ratio, and liabilities to assets ratio. These are used to gauge how a charity is spending its funds to direct donors to organizations that are using their funding responsibly. For accountability & transparency, the organization is scored on 17 different metrics, which assess whether the charity follows best practices of governance and ethics, whether the charity makes it easy for donors to find critical information about the organization. The overall score and star rating is calculated from these two numbers.

BEST OF THE BEST. Needless to say, NEADS is proud of its 16 consecutive 4-star ratings and the recognition we’ve received from Charity Navigator. In fact, just this year NEADS has made the Charity Navigator Top 10 Charities with the Most Consecutive 4 Star Ratings. And while we love making these “Best of” lists, what’s even more important is the reassurance it provides our current and prospective donors that NEADS respects and values your contributions every day.