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Financial Health Rating in Charity Navigator

4 Ways to Improve your Financial Health Rating in Charity Navigator

Posted by  Daniel Baker

Charity Navigator, a charity watchdog organization, uses three dimensions to evaluate non-profits and NGOs: financial health, transparency & accountability, and results reporting. It believes these are three key pieces of information that an informed donor needs to consider when selecting a non-profit to support.

Financial health evaluations are based on the financial information each non-profit provides in its IRS Form 990. They examine expenses, output, and growth, to determine the organization’s financial efficiency and financial capacity. There are seven key areas that assess a non-profit’s financial efficiency and capacity, in relation to its cause area:

  • Program Expense Percentage
  • Administrative Expense Percentage
  • Fundraising Expense Percentage
  • Fundraising Efficiency
  • Program Expenses Growth
  • Working Capital Ratio
  • Liabilities to Assets Ratio

Download our e-Guide: “4 Ways to Improve Your Financial Health Rating in Charity Navigator”

In order to strengthen your financial health, it is vital to cut through and automate the necessary day-to-day tasks, so you can start to have full visibility into the KPIs that Charity Navigator uses to evaluate your organization. You can accomplish this by following Unit4’s CFO maturity model, where you will find four steps that will help you improve your non-profit’s financial health:

  1. Standardize and structure your finance procedures
  2. Optimize and execute your processes efficiently
  3. Deploy flexible, real-time analysis
  4. Achieve automated self-service

To learn Charity Navigator’s financial KPIs and the four steps you can take to improve your non-profit’s financial health, download the guide: “4 Ways to Improve Your Financial Health Rating in Charity Navigator“

Daniel Baker

Daniel Baker focuses on helping NGOs & Non-Profit Organizations to increase operational efficiency while providing the highest level of accountability and transparency.

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