Donor Doctor Show

Charity Rating Groups: Do they do more harm than good?

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Synopsis

Most people would say that a charity is always good - but not everyone. Some people would argue that charity work is carried out badly or less than optimal. In today's exciting episode of the Donor Doctor Show, James talks with his son about charity rating services and whether or not they do more harm than good. The Overhead Myth According to GuideStar, "The overhead myth is the false conception that financial ratios are the main indicator of a nonprofit's performance". Today's donor is more interested in knowing if there will be a measurable return from their donation. Creating a bigger impact comes from having access to more resources, but are charities spending too much of it's donations on administrative salaries and expenses? Expectations Today, people's expectation of charities are higher than ever. People want to know that their donations are being allocated in the right areas to generate meaningful results. But our increasingly connected world and an ever growing level of transparency is only going to