Category: uncategorized

What we’re analyzing

Charity Intelligence analysts review publicly-available information on each of the over 800 charities we evaluate. This includes their financial statements, annual reports, CRA T3010 filings, and websites. Each charity is consistently rated given the standards set in our  for-charities/rating-methodology rating methodology. We work for donors, not charities, to shed light on the giving landscape and provide donors with the knowledge to make informed giving decisions. 
 
What the star rating means 
Our star ratings are based on the following 5 factors: 
 
1. Results Reporting 
The results reporting grade is an evaluation of the charity’s reporting levels. This evaluation takes into account the public reporting of the charity’s activities, outputs, and outcomes, without assessing the strength or quality of these elements. A charity can have a score ranging from A+ to F. This grade accounts for 35% of the star rating. 
 
2. Financial Transparency
We judge a charity’s financial transparency based on how easily we can access its audited financial statements. A fully transparent score (✔+) means that 2+ years of its statements are posted on its website; ✔ means that its most recent statement is posted; ✖ means that it is not transparent as its statements are not posted online – either they are available only when requested from the charity or they are only available through a request for information from the Charities Directorate. A charity’s financial transparency accounts for 15% of the star rating. 
 
3. Need for Funding
Another component of our evaluation is the charity’s need for funding, comparing its reserve funds relative to the annual program spending. Reserve funds include liquid assets of cash, cash equivalents, and investment securities, less interest-bearing liabilities. The need for funding metric is calculated based on the ratio of reserve funds  (excluding donor-endowed funds) and the annual program costs. This ratio accounts for 15% of the star rating. 
Update 2023: more donors are asking more questions about charities’ balance sheets. We feel this is critical information. It’s important to see whether a charity is rich or poor, and ponder whether a charity needs your donation. Many charities fundraise because they can. Some charities already have tens of millions or hundreds of millions in reserve funds. We think it’s important for donors to know this information. 
For those of you who want to learn more, here are additional articles that discuss in detail the need for funding with examples: 
https://www.charityintelligence.ca/research-and-news/ci-views/33-donor-giving/664-excessive-fundraising-by-charities-is-not-a-joke Excessive fundraising by charities is not a joke, Calgary Herald, September 19, 2020
https://www.charityintelligence.ca/research-and-news/ci-views/31-disaster-response/650-like-toilet-paper-hoarders-some-charities-unnecessarily-filling-reserves Like toilet paper hoarders, some charities unnecessarily fill reserves, Covid outbreak, March 24, 2020.
 
4. Cents to the Cause
We evaluate how many cents are available to go towards the charity’s programs for each dollar donated. We have developed a “reasonable range” for overhead spending: 5% to 35%. If overhead costs are below 5%, we reason that the charity is either not spending enough on its fundraising and overhead costs, or it may not be disclosing these costs appropriately. Above 35%, there is concern that the charity may not be operating effectively. Above 50%, there is significant concern that the charity is overspending on fundraising and administrative costs.  This ratio accounts for 15% of the star rating.
 
5. Social Impact Rating
The final factor that affects the star rating is the social impact rating. The impact ratings display the demonstrated social impact produced by the charity for each dollar donated as well as a measure of the quality of the data available to assess the charity’s social impact. For a more detailed description of this metric, please see our social-impact-ratings Social Impact Ratings Methodology page.  We are still in the process of reviewing social impact for charities, thus you will not always see it in the analysis. Where it is available, it accounts for 20% of the star rating.
 

Extra information 

• Programs: For more information about the charity, its results and impact, and its presence in the news, you can find that information under the Programs section. 
• Finances: We break down the charity’s finances in this section, comparing the most recent three years of our analysis. We also include salary information. 
• Comments & Contact: Charity Intelligence sends all this information as a report to the respective charity for any edits or comments. We include these comments here if provided. 

Intelligent Giving

For charities that have a lower score, we provide thoughtfully-selected alternative charities doing similar work in similar geographies for donors that are looking to make a switch but still want to donate to the same cause. This list can be found in the right-hand sidebar of many lower-scored charity profiles.  

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Looking to donate to a specific cause? The charities we’ve rated are listed below, grouped by sector. 
 
<module that lists all sectors with their sub-sectors listed underneath each one> 
<module that pulls the sector of each charity (the way Category blog pulls the articles in each category) into lists under the Sector headings> 

As of 2019, Charity Intelligence has reports on approximately 750 charities. Here is the complete alphabetical listing of charities.
You can also use the search box above by typing keywords like:
“education”, “veterans”, “food banks”, “international”
or cities e.g. “Calgary”, and province abbreviations”QC” to help find charities that match your interests,
or browse the  charity-profiles/search-by-sector Search by Sector page. 
 
CUSTOM A-Z MODULE HERE

Different this time

Indonesia’s recent tsunami is different from past disasters. With a far smaller toll than previous disasters, Indonesia is going alone without international help. Donors should understand these differences. If Canadians choose to donate, give differently this time.
We held our breath with the breaking news of Indonesia’s tsunami on December 22, 2018. The same place, nearly the same day, triggered memories of one of the world’s most destructive natural disasters, the Boxing Day tsunami in 2004.  
Thankfully, this time is different. News reports put the death toll at 430. This is tragic and will likely rise yet the toll is a fraction of the 2004 Boxing Day tsunami that killed 227,900[1], or Indonesia’s Sulawesi earthquake in late September 2018 that killed an estimated 2,260[2]. For this Sunda Strait tsunami, a reported 148 people remain missing, a further 1,485 people are injured, and more than 16,000 are displaced[3].
Situated on the Ring of Fire, natural disasters are sadly common in Indonesia. It is regularly assaulted by earthquakes, volcanoes and tsunamis. It is typically prepared with early warning systems. This recent tsunami was “silent” and caught people off-guard. Apparently, the crater within the Anak Krakatau volcano collapsed. Indonesia’s tsunami-alert system looks to detect earthquakes, not volcanic eruptions.
 
Thanks for the offer, but no thanks
For relief and recovery, Indonesia’s government is relying on its own resources, its local organizations and its local charities. Following the humanitarian response to the September 2018, it has asked international aid organizations to leave.
“There’s pushback against [foreigners] who come flooding in days or weeks later to take over the response. It’s about taking back power and saying local organizations have significant capacity. Natural disasters aren’t a new phenomenon for Indonesia, unfortunately. … They are well experienced in responding to natural disasters.”
– Jen Clancy, Australian Council for International Development[4]
For the Sunda Straits tsunami relief and recovery efforts, Indonesia’s government is leading and co-ordinating with its own resources and local organizations. This seeks to retain accountability to Indonesians affected by the disaster.  To date, it has not requested international help[5].
Nevertheless, Canadian Red Cross launched a disaster appeal to support emergency operations in Indonesia[6].
 
Killed by our kindness
The Indonesian government’s request has drawn criticism from international aid charities[7]. Yet Indonesia’s past experience justifies its opposition to calling in international aid organizations to help.
Former Canadian Red Cross officer, Virgil Grandfield was on the ground for reconstruction following the 2004 tsunami. He witnessed how Canadian and international donations led to human trafficking and modern-day slavery of tens of thousands of Indonesians[8]. This negligence led to untold misery and deaths.
“It is my personal hope that we find and compensate at least some of the families of those men and women who died because of our gross negligence in Indonesia. We cannot fix the huge mess we created, but at least we can try to help those harmed by our mistakes….We caused far more harm and pain than would have been if we had never gone there. ”
– Virgil Grandfield, 2016 National Magazine Award winner for Investigative Reporting
 
Indonesian local charities to support
Indonesia’s 2018 disaster is different from that of 2004. Our giving response should also be different. Charity Intelligence recommends Canadians respect the wishes of the Indonesian government and not donate to Canadian charities for this disaster response.
Canadians looking to donate to the disaster recovery may consider making a one-time donation to Indonesian charities like:
MDMC, Muhammadiyah Disaster Management Centre. It is highly regarded by some humanitarian aid workers[9]. Founded in 2010, MDMC is like a local Red Cross and co-ordinates disaster management and crisis response in Indonesia. Through local awareness and preparedness, MDMC provides faster responses to disasters and builds community resilience.
BNBP, (Badan Nasional Penanggulandan Bencana) This is the national disaster-relief organization in Indonesia. Founded in 2008, BNBP provides disaster response and fair and equitable reconstruction.
Indonesia Red Cross (Palang Merah Indonesia) Give directly to Indonesian Red Cross rather than through partner agencies.
 
Caveat: Charity Intelligence has not analysed these Indonesian charities, nor undertaken any due diligence. These charities are simply recommended by seasoned professionals we see as experts, and by local Indonesian news agencies.
Please note, these are not registered Canadian charities and donors will not receive a tax receipt.
Charity Intelligence will monitor Canadian charities that launch fundraising appeals and their relief and recovery results in Indonesia.
 
Sources:
1. Wiki  https://en.wikipedia.org/wiki/2004_Indian_Ocean_earthquake_and_tsunami 2004 Indian Ocean earthquake and tsunami
2. Wiki 2018  https://en.wikipedia.org/wiki/2018_Sulawesi_earthquake_and_tsunami Sulawesi earthquake and tsunami
3. Jakarta Post, “ https://www.thejakartapost.com/news/2018/12/25/sunda-strait-tsunami-death-toll-hits-429-navy-discovers-bodies-at-sea.html Sunda Strait tsunami death toll hits 429, Navy discovers bodies at sea”, December 25, 2018
4. Kate Lyons, “ https://www.theguardian.com/world/2018/oct/09/indonesia-orders-foreign-aid-workers-helping-with-tsunami-effort-to-leave Indonesia orders foreign aid workers helping with tsunami efforts to leave: Disaster agency says foreign NGOs should ‘retrieve their personnel immediately”, The Guardian, October 9, 2018
5. UN News, “ https://news.un.org/en/story/2018/12/1029291 Indonesia tsunami: Many still missing as death toll rises”, December 24, 2018
6. Canadian Red Cross,  https://www.redcross.ca/about-us/red-cross-stories/2018/red-cross-responding-to-latest-tsunami-in-indonesia Donate to the Indonesian Earthquake and Tsunami Appeal, December 2018
7. Associated Press, “ https://www.ctvnews.ca/world/indonesia-quake-that-killed-more-than-500-not-a-national-emergency-officials-1.4061220 Indonesia quake that killed more than 500 not a national emergency: officials”, reported by CTV, August 21, 2018
8. National Magazine Awards,  https://magazine-awards.com/en/2017/02/16/off-the-page-with-investigative-journalist-virgil-grandfield/ interview with Virgil Grandfield, February 16, 2017
9. Charity Intelligence’s independent sources, experienced humanitarian aid workers comments “I second MDMC in Indonesia – they do great work” and “Also a fan of MDMC in Indonesia”.
Photo credit: The Jakarta Post, Dec 25 2018. 
 

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The information in this report was prepared by Charity Intelligence Canada and its independent analysts from publicly-available information. Charity Intelligence and its analysts have made endeavours to ensure that the data in this report is accurate and complete but accepts no liability.
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