What About a Charity’s Impact?

from The Chronicle of Philanthropy:

Charities and Watchdog Groups Clash Over Monitoring Systems

Battles between charities and the watchdog groups that help donors decide where to give escalated last week when a major trade association released drafts of two reports by scholars who say the watchdogs may do more harm than good.

The studies, paid for and released by the Direct Marketing Association’s Nonprofit Federation at a meeting here, charge that the watchdog groups use evaluation systems that are confusing and simplistic.

What’s more, they said, because the watchdog groups are influential, charities often take steps that are not smart in the long-term simply to garner high ratings.

The watchdog organizations they studied are the American Institute of Philanthropy, Better Business Bureau’s Wise Giving Alliance, and Charity Navigator.