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Charity Navigator is launching a new rating system to help better evaluate nonprofits

FastCompany: “Since March, as the pandemic has shattered the economy and the protests forced an examination of racial justice, Charity Navigator has seen a 200% year-over-year increase in donations to nonprofits made on its site. Now, as interest in giving continues to grow, the largest charity evaluator wants to make it even easier for donors to know how effective a nonprofit—big or small—is, and for nonprofits to share information about their work…Nonprofits focused on civil rights and diversity and inclusion nonprofits, for example, might not meet that criteria because they’re often younger than larger, well-established organizations. “Ten years ago, a lot of these issues were not at the same level of focus and energy we have today,” Thatcher says. With the new system, called Encompass, the site will only require three consecutive years of tax forms and no minimum in annual revenue (most have an annual revenue around $250,000), Charity Navigator can now look at smaller, local nonprofits that it has never evaluated before. With this tool, the site has increased its total number of rated nonprofits from around 9,000 to 160,000…”

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