PatrickDC said: "Charity Navigator is a horrible company. In theory, I am all for transparency in nonprofit accounting. The issue is that CN uses a very simplistic measuring tool, a one-size-fits-all, despite measuring all types of nonprofits. So a small nonprofit with an all-volunteer staff (i.e., no paid staff) doing one small efficient program with a $100,000 budget is rated the same as a major university with huge and realistic expenses and serving thousands of students, nationwide health affiliates performing expensive research, etc. That's not fair. Also, CN does not permit any opportunity to explain to donors why their ratings are such. You just get a star rating and deal with it. My current organization has a very legitimate reason for our expenses -- one that our annual audit affirms -- but we have two stars. We have been fighting with CN for a couple years trying to get things changed. When they do care to respond it is a canned response.
I also worked for a hospital foundation that had very up and down revenue and expenses from one year to the next, based on major equipment purchases and building renovations. CN did not like this up and down graph. They said it made us look inconsistent. Really? It is a major charity in the San Francisco Bay Area that has unbelievable corporate and private philanthropic support.
Sorry to rant but CN is a major thorn in the sides of many nonprofit officers. Like I said, a good theory, but not a good model and not a well run organization itself."
As someone who also works in the helping sector, I'll add a bit +1 to this!! I recently discovered a really, really funny video that illustrates what it would be like if pizza shops were funded like non-profits.
I've had less experience with arts organizations, but I would imagine the issues are very similar.
