We assess the direct impact of a charity’s program relative to the cost required to run it to help donors identify high-impact charities.
Donors want to make sure their hard-earned dollars are doing the most good when they support a charity. The Impact & Measurement beacon determines if a charity is making good use of resources to address the issues it aims to solve.
We use information that was either publicly available or charity-submitted to estimate the actual impact a charity’s program has on people's lives.
We define impact as the change in mission-driven outcomes net of what would have happened in the absence of the program (the "counterfactual"), relative to the cost to achieve that change.
We then compare the estimated impact of the nonprofit's program to a benchmark to determine if it is cost-effective — in other words, the benefits produced by the charity’s program outweighs its costs. A cost-effective program is making good use of resources to improve the lives of the people it serves.
Score | Assessment | Description |
---|---|---|
100 | Highly cost-effective | A charity receives a total of 100 out of 100 points if it is highly cost-effective by our estimates. |
80 | Cost-effective | A charity receives a total of 80 out of 100 points (a passing score) if it is cost-effective by our estimates. |
65 | Not cost-effective | A charity receives a total of 65 out of 100 points if it has published sufficient information for us to estimate the impact of a substantial portion of its programs, but we found it was not cost-effective. We determine cost-effectiveness by comparing our estimate of the nonprofit's impact to a benchmark for performance. |
Charities can earn Impact & Measurement beacon by logging into the Charity Navigator Nonprofit Portal and providing the necessary data.
We create methodologies by program area, allowing the donor to compare the impact of charities conducting similar programs.
While eligibility for Impact & Results scores is limited to charities running programs that we’ve developed a methodology for, we are working on expanding our methodologies to be inclusive of more types of charities. You’ll find a short description of the programs we currently evaluate here. You can read the full methodology in our guidebook.
We measure the success of a forestation program as its cost to offset a year of a typical American's personal carbon emissions. To calculate the impact of afforestation and reforestation programs, we divide the total program-related costs incurred by the attributable years of a typical American's personal carbon emissions offset. Our benchmark is the estimated social cost of carbon.
We measure the success of an animal shelter program as its cost to rescue an animal in need. To calculate the impact of an animal shelter program, we divide the total program-related costs by the number of animals rescued. Our benchmark is an estimation of the cost of lifesaving medical care for an animal.
We measure the success of an antiretroviral therapy program as its cost to avert a Disability Adjusted Life Year (DALY). To calculate the impact, we divide the total program-related costs incurred by all cost-bearing parties by the number of attributable DALYs averted. Our benchmark is a standard cost per DALY averted, regardless of a program’s geographic area of operation.
We measure the success of a cataract surgery program as its cost to successfully cure one person of blindness due to a cataract. To calculate the impact of a cataract surgery program, we divide the total program-related incurred by all cost-bearing parties by the total number of people cured of blindness. Our benchmark is the average productivity cost of an individual’s visual impairment.
One-time cash transfers to beneficiaries involve the direct provision of financial assistance in the form of a lump sum payment to individuals or households. We divide the total program-related costs incurred by all cost-bearing parties by cash value distributed to beneficiaries. For nonprofits providing cash assistance, the benchmark is the cost for the nonprofit to distribute the assistance divided by the value of the assistance to the household. Programs receive a score of 100 if the cost to provide assistance is less than 125% of the value of the assistance and a score of 80 if it is between 125% and 200%.
We measure the success of an emergency shelter program as its cost to provide a night of shelter to a person experiencing homelessness. To calculate the impact of an emergency shelter program, we divide the total program-related costs by the total nights of shelter provided. Our cost-effectiveness benchmarks are county-level Fair Market Rents from HUD.
Charity Navigator measures the success of an equine shelter program as its cost to rescue an animal in need. To calculate the impact of an equine shelter program, we divide the total program-related costs incurred by all cost-bearing parties by the number of net reduced animals. Our benchmark is an estimation of the cost of lifesaving medical care for a horse. Nonprofits score 100 points if the cost of a rescue is less than 75% of the benchmark, and 80 points if the cost of a rescue is between 75% and 125% of the benchmark. Otherwise, they receive 65 points.
We measure the success of an eyeglasses provision program as its cost to avert a Disability Adjusted Life Year (DALY). To calculate the impact, we divide the total program-related costs incurred by all cost-bearing parties by the number of attributable DALYs averted. Our benchmark is a standard cost per DALY averted, regardless of a program’s geographic area of operation.
We measure the success of financial assistance programs as the amount of financial assistance provided to a patient to cover non-medical costs. To calculate the impact of a financial assistance program, we divide the total program-related costs by the total dollar value of financial assistance provided. For financial assistance programs, we benchmark against the cost to operate the program.
We measure the success of a financial counseling program as the cost of the increase in FICO score individuals experience as a result of a nonprofit’s program. To calculate the impact of financial counseling, we divide the total program-related costs by the total estimated income boost per 1-point increase in credit score. For financial counseling nonprofits, we benchmark against the cost to operate the program.
We measure the success of a food distribution program as its cost to provide a meal to a person in need. To calculate the impact of a food distribution program, we divide the total program-related costs incurred by the total number of meals the program provided to people in need. The price of a meal varies across the country, so we apply county-level cost-effectiveness benchmarks to each nonprofit based on the average price of a meal.
Charity Navigator assess the efficiency of disaster relief programs that address immediate challenges, such as the sudden scarcity of essential resources like food, shelter, and medical supplies. Organizations in this category may provide one-time cash transfers and/or essential goods, ensuring the survival and recovery of individuals in crisis. Programs receive a score of 100 if the cost to provide aid is less than 125% of the value of the aid and a score of 80 if it is between 125% and 200%.
We measure the success of a goods provision program as its cost to directly distribute basic goods to people in need, excluding certain items that provide a long-term impact to recipients. The impact is estimated by calculating the ratio of total program-related costs to the total market value of the distributed goods. For goods provision programs, we benchmark against the cost to operate the program.
We measure the success of a trap-neuter-release or spay and neuter program as its cost to avert a stray birth. To calculate the impact of a spay and neuter program, we divide the total program-related costs by the stray births averted attributable to a nonprofit’s program. Our benchmark is an estimation of the cost of lifesaving medical care for an animal.
We measure the success of a permanent supportive housing program as its cost to provide a formerly homeless household a year of stable housing after achieving permanent housing. To calculate the impact of a permanent supportive housing program, we divide the total program-related costs incurred by the person-years of housing attributable to a nonprofit’s program. Our cost-effectiveness benchmarks are county-level Fair Market Rents from HUD.
We measure the success of a postsecondary scholarship program as its cost to increase income for a student in need. To calculate the impact of a scholarship program, we divide aggregate attributable outcomes (additional income for all scholars) by aggregate costs incurred by all cost-bearing parties. For postsecondary scholarship programs, we benchmark against the cost to operate the program.
We measure the success of a shared reading program as its cost to provide a year of shared reading to a child. To calculate the impact of a shared reading program, we divide the total annual program-related costs incurred by the total child years of shared reading attributable to a nonprofit’s program. Our cost-effectiveness benchmark is an estimate of the social cost of using a library, including transportation to and from.
We measure the success of a veterans disability benefits program as the dollar amount of disability benefits claimed by a veteran due to the nonprofit’s assistance. To calculate the cost-effectiveness of a veterans disability benefits program, we divide aggregate attributable outcomes (sum of disability benefits claimed by all veterans served by the program) by the total program-related cost incurred. For veterans' disability benefits programs, we benchmark against the cost to operate the program.
We measure the success of a clean water program as its cost to provide a year of safe, reliable water to one person. To calculate the impact of a water program, we divide the total program-related costs incurred by all cost-bearing parties by the estimated person-years of clean water provided. For water programs, we benchmark against a regional estimate of the value of access to a safe supply of drinking water from the World Health Organization.
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