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Charity Evaluation

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Charity vs Charity Evaluation

An organization which aims to help the needy is called a charity. A charity takes donations of almost everything like clothes, toys, books etc. and supplies them to the people who need them. If the donations are in the form of money, the organization spends it on the essential things that are to be provided to the people.

But do you think all the charities work with the same responsibility? No. It accountability of a charity depends on the honesty and sincerity of the staff involved. So if you can know how the organization spends your money before donating it, you can have faith in them. You can be happy that your money is in safe hands. Here comes the need of Charity evaluation.

Charity Evaluation

Charity Evaluation

What is charity Evaluation?

Charity evaluation is a process of rating a charity taking all possible information into account. This process gives you an idea of how well the organization spends your money. A rating will be given to all organizations and you can even compare one with the other and decide which one is the best. This evaluation technique takes into account information regarding the governance, programs, finances, fund raising and operations.

Using this evaluation method you can identify whether a particular charity is suitable to receive contributions entitled with tax deductions. Generally 60 % of the total expenses of a charity should be on charitable programs. The rest will be on fund raising and general expenditure. This keeps a charity at a satisfactory level. Highly efficient charities usually spend more than 75%. Fund raising costs generally include direct mailing, telemarketing etc. These are sometimes added to program costs.

Organizations need to show a proof of their effectiveness to the donors, commissioners and investors. They need to publicize this. So they need to show improvement in their programs. So this evaluation even helps the organization to learn from their past experiences and improve their future programs. Evaluation usually involves observing the information given by the organization over a certain period of time. But that is not possible always and in such cases this method follows the method of investigation. A questionnaire is prepared and depending on the answers the evaluation process is done. This process is carried out even if there is enough information from the organization and is considered as additional facts.

Steps for Charity Evaluation

Any evaluation process generally consists of the following steps:

  • Planning and Designing
  • Data Collection
  • Data Analysis
  • Interpretation
  • Reporting

Even charity evaluation follows all these steps to give a rating to the organization. There are many evaluation service websites which undertake this process and give a rating. These websites have a huge listing of the charity organizations with ratings and standards.

You can go through all those and decide which organization will better suit your requirement. Charity evaluation is generally considered as playing with god and hence is close to be genuine. So the donors can verify the ratings of a particular organization and go ahead with their donation.