The Who and the What
Charity Intelligence Canada performs intensive research to seek out exceptional charities to help donors find the best charities that reflect their interests. Their research methodology consists of various forms of evaluation. To summarize a few:
1) Transparency Rating
A charity must make their audited financial statements available to donors in order to be open and transparent. Assessment is based on their transparency in providing complete audited financial statements.
2) Program Cost Coverage
Assessing a charity’s need for funding. Assessment includes the comparison between funding reserves and program costs. The program cost coverage is calculated by dividing the year-end funding reserves of the most recent year by the program costs for the year.
3) Spending Breakdown
Looking at how the charity allocates its revenues received between costs.
4) Fundraising Costs
Presented as a percentage of donations rather than total revenues and are a result of the costs of soliciting the public for voluntary donations.
5) Financial Notes
Explain adjustments made to the financial numbers to provide a consistent basis for comparison.
6) Salary Information
Sourced on the charity’s most recent T3010 filings with the Canada Revenue Agency.
Charity Data Reported:
1) Program Data
Presents information that is specific to the charity’s operations (i.e. number of clients, volunteer hours, etc)
2) Charity Analysis
Provides funders insight into a charity by providing relevant ratios for charity’s cost efficiency, the scope of service, and sources of inputs (Charity value).
3) Audited Financial Statements
Contains key aspects of the charity’s finances.
The article and why is this important?
The article ”Table turned on Charity Intelligence as charitable status revoked” by the Globe and Mail highlights an incident with Charity Intelligence (CI) where they failed to file an annual financial report with the tax agency. For this reason, the Canada Revenue Agency revoked their charitable status. This can lead to adverse affects since a reapplication can take several months and during this time they cannot issue any tax receipts. This doesn’t look good for CI given the irony that their work is to review and highlight shortcomings in other charities. The CI would consider failing to file “a lack of effective management, or a lack of transparency” (Waldie, 2012). This incident has brought upon a negative outlook on the CI, Ms. McManus (chair of the Association of Fundraising Professionals) expressed her opinion after looking into the CI’s work, “while the foundation has raised donor awareness, its analysis can be misleading” (Waldie, 2012).
We can conclude that the methods of evaluation conducted by the CI are not as reliable for an appropriate analysis as they were before the incident. Although despite this bump in the road for CI, their work is still valuable in providing important information regarding the veracity of charities.
In relation to Global Health Promotion:
Adequate and appropriate evaluation of charity and global health promotion work is necessary to ensure a proper program/project analysis. Evaluation allows us to assess and improve quality as well as determine the effectiveness of the work being done.
Similar to the CI, health promoters must understand evaluation concepts, the sequence of evaluation, appropriate evaluation designs and methodology, and how to analyze and report evaluation data. With that being said, it’s clear that your credibility as a health promoter is linked to your ability to perform these evaluation tasks appropriately. (McKenzie, Neigher & Thackeray, 2009).
All global health programs should perform proper evaluation and research to ensure the program is meeting their goals, to determine financial accountability, identify the possibility of harm, and to determine the ‘best’ practice.
Charity Intelligence Canada. (2013). Our Methodology. Retrieved from: http://www.charityintelligence.ca/research/our-methodology
McKenzie, F., Neigher, B., & Thackeray, R. (2009). Evaluation. Health Promotion Programs. (pp. 336-337). San Francisco, CA: Pearson Education Inc.
Waldie, P. (2012). Tables turned on Charity Intelligence as charitable status revoked. The Globe and Mail. Retrieved from: http://www.theglobeandmail.com/report-on-business/tables-turned-on-charity-intelligence-as-charitable-status-revoked/article4564354/