Why did your Charity Navigator score change?

Recently, Charity Navigator introduced seven financial metrics into its analysis. Because of charity: water’s business model and granting methodology, two of the seven metrics (liabilities to assets ratio and working capital ratio) inaccurately represent charity: water’s financial health, and contribute to the change in our rating.  

 

charity: water operates under the 100% model, which dictates that the organization maintain two financial “buckets”: one bucket is restricted to internal business operations and a second bucket is restricted to water projects. Charity Navigator consolidates these buckets, which is inaccurate and damages the rating it provides for charity: water.  

 

charity: water raises the entire amount necessary for a grant before granting, but does not disburse the entire amount upfront. This methodology keeps our partners accountable, but inflates our grants payable, and ultimately lowers our rating from Charity Navigator.  

Was this article helpful?
0 out of 0 found this helpful
Powered by Zendesk