The focus on financial ratios as a measure of your organization’s effectiveness got you down? You aren’t alone.
In a giant leap for nonprofit-kind, GuideStar, Charity Navigator and BBB Wise Giving Alliance have joined forces to expand the way we rank the efficiency and effectiveness of not-for-profits organizations.
Their Overhead Myth Campaign is designed to realign charity ranking schemes to include both financial ratios and programmatic impact.
Why? Because the basic premise of a not-for-profit organization is charitable impact. At times, charitable impact can elude financial measures. Instead, the measure of a not-for-profit organization’s effectiveness should be multifaceted, including governance and mission-focused impact, as well as financial health.
Congratulations to GuideStar, Charity Navigator and BBB Wise Giving Alliance for recognizing the issue and taking a stand.