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To evaluate a nonprofit, check its public records, read its financial information across several years, examine how it measures program results, and ask what another donation would make possible. No public filing, expense ratio, or evaluator rating can establish trustworthiness or impact on its own. This guide focuses on U.S. nonprofits; disclosure rules and rating coverage differ by jurisdiction.
What a useful evaluation can—and cannot—tell you
A sound review separates four questions that are easy to conflate: Is this the organization I intend to support? Does it disclose enough to assess its operations? Are its finances understandable in context? Is there credible evidence that its work produces the outcomes it claims?
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These questions call for different evidence. Tax filings can help verify identity and understand finances, but they do not prove that a program works. An annual report may explain activities and results, but it is not automatically an independent evaluation. A rating summarizes an evaluator’s method and available information, not a universal verdict on every organization or cause.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsStart with the nonprofit’s exact legal name, location, mission, and the people or issue it serves. Confirm that the organization you find in public records is the same one described on its website. Similar names, affiliated organizations, local chapters, and fiscal sponsors can otherwise make a filing appear to belong to the wrong entity. For a U.S. tax-exempt organization, IRS disclosure materials are a useful starting point: the IRS says organizations generally must make annual returns and exemption applications filed with it available for public inspection and copying. The IRS also provides access to those documents. Read the IRS’s public-disclosure requirements; the rules have exceptions and are not legal advice.
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How to check a nonprofit’s Form 990 and other records
Form 990 is a federal information return used by many tax-exempt organizations. It can help you understand an organization’s reported revenue, expenses, assets, governance, and activities for a particular filing period. It is a starting document, not a program-impact assessment or an independent audit of every statement.
- Confirm the organization’s identity. Note the legal name and location, then make sure a filing or profile refers to that entity rather than a similarly named charity, affiliate, or chapter.
- Locate the available public filing. Use the IRS disclosure information to understand access to annual returns and exemption applications. If you use a nonprofit profile or database to find documents, check the filing itself when available rather than relying only on a summary.
- Check the period covered. A filing describes a specific fiscal period, which may not match the calendar year or the period in the organization’s latest annual report. Record the fiscal year-end so you do not compare different periods as though they were contemporaneous.
- Read the figures as reported, then look for context. Review revenue, expenses, and assets alongside annual reports and other available financial statements. If a large change appears, look for an explanation before interpreting it as a trend or problem.
- Note what the filing does not answer. It cannot by itself show whether the nonprofit’s intervention caused a change, whether the change lasted, or whether another organization would use a donation more effectively.
The IRS explains the general public-disclosure obligation, but this guide does not cover every legal exception or filing requirement. If a document is missing or an organization’s status is unclear, ask the nonprofit or consult the relevant official guidance rather than treating an incomplete profile as proof of misconduct.
What to look for in a nonprofit’s annual report
An annual report is most useful when it lets a reader connect resources, activities, and results. Look for a clear reporting period, a description of who was served and where, the work carried out, and the outcomes the organization says followed. Check whether it explains how those outcomes were measured and whether the reported result is directly relevant to the nonprofit’s stated mission.
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Review the report alongside available financial statements, leadership and governance information, and program descriptions. Audited financial statements can offer additional financial context where they are available, but the materials in this guide do not establish that every nonprofit is required to publish an audit. Do not infer that an organization is hiding information merely because a particular document is not on its website; ask whether it exists, where it can be reviewed, and what period it covers.
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Transparency is more than a polished presentation or a long list of activities. A useful account makes it possible to understand what the organization did, for whom, over what period, and what changed. It also addresses setbacks, limitations, or results that did not match expectations. GiveWell describes transparency in its own evaluation process as openness to intensive investigation and public discussion of both positive and negative developments, and says it aims to publish its reasoning so others can assess it. That is a demanding example of disclosure, not a universal certification standard for every nonprofit. GiveWell’s criteria explain the scope of its own approach.
How to read nonprofit funding and finances over time
One year’s revenue or expense totals can be misleading without the years around them. Compare revenue, expenses, and assets over multiple years, and check whether annual reports explain major shifts. Candid recommends reviewing these multi-year trends to understand an organization’s finances and how funding may be used. Candid’s guidance on nonprofit compliance and fit also describes using compliance information, nonprofit profiles, and grant information as research aids.
As you review the trend, identify what the organization says about funding sources and restrictions, when that information is disclosed. Restricted funds may be committed to specified purposes, so total reported revenue does not necessarily equal money available for any new activity. Consider whether a change in revenue, expenses, or assets has a stated explanation—for example, a shift in the scale or timing of activities—rather than assuming the cause from the totals alone. If a material change remains unexplained, ask the nonprofit what changed and how it affects current programs.
Do not rank charities simply by the percentage of expenses labeled “program.” Expense classifications provide financial context, but they do not measure program quality or prove outcomes. Staff costs, including executive compensation, may be allocated across program, administration, and fundraising based on time spent. Charity Navigator presents CEO compensation as an unscored data point and describes such allocation in its explanation of its rating system. Its rating-system explanation is the relevant source for how that evaluator treats the figure.
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How to tell whether a nonprofit is making an impact
Begin with the organization’s causal claim: what change is it trying to produce, and how are its activities expected to produce that change? Then look for evidence that measures outcomes rather than only counting inputs or activity. Numbers of events, meals, consultations, or people served can show the scale of work; by themselves, they do not establish what changed for participants.
- Outcome: What result does the program aim to change, and how does the organization define it?
- Population and period: For whom was the result measured, where, and over what time?
- Method: What information was collected, how was it collected, and how did the organization decide whether the program contributed to the outcome?
- Fit: Does the evidence concern this organization’s implementation and a population similar to the one it serves?
- Limits: What uncertainties, unintended effects, or alternative explanations does the organization acknowledge?
GiveWell’s investigation heuristics look for evaluation reports that explain the method, the information collected and how it was gathered, and the project’s actual impact. GiveWell also cautions that the evidence relevant to impact depends on the type of program; there is no single impact rule that fits every intervention. Its criteria for investigating a charity describe that approach. A reader should therefore judge evidence against the program’s specific claim, rather than expect every nonprofit to use an identical study design or report the same outcome.
Be careful about the difference between association and cause. If outcomes improved during a program, that observation matters, but it may not establish that the program alone produced the improvement. Look for the organization’s explanation of how it interpreted the result and what uncertainties remain. If the report describes only activity totals, ask whether outcomes are measured and, if not, why those activity measures are the most relevant evidence available.
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A nonprofit may do valuable work and still have limited near-term capacity to use more money effectively. If you are choosing between specific funding opportunities, ask what additional funding would pay for, whether the organization can deploy it, and what would happen if the donation were not made. A concrete answer might explain the activity or expansion the funds support, the resources needed to carry it out, and the intended result.
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GiveWell considers evidence of effectiveness, cost-effectiveness, room for more funding, and transparency in its own grantmaking. It says its goal is not to rate every charity, but to identify opportunities it believes can maximize the impact of additional donations in terms of lives saved or improved. Those criteria can help donors frame questions about a specific opportunity, but they are not a complete or universally applicable score for every mission, organization, or giving preference. GiveWell’s criteria are specific to its own work.
When an organization cannot identify a specific use for an additional gift, that does not by itself show that its work lacks value. It does mean you have less information about the marginal value of that particular donation. Separate your decision about the organization’s overall work from your decision about whether this is the right funding opportunity for your goals.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to interpret charity ratings and missing ratings
A rating is useful only when you understand what it covers, what data it uses, and whether the organization qualifies to be rated. Charity Navigator’s help page, dated April 9, 2026, describes its Encompass rating system as using four beacons: Accountability & Finance, Impact & Measurement, Leadership & Planning, and Culture & Compensation. It says approximately 45–50 metrics are used, depending on factors such as revenue size and donor support, and combined into an overall score translated to a 0–4-star rating. Those figures describe Charity Navigator’s methodology, not the performance of nonprofits as a sector.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchThe same page says Charity Navigator draws on self-reported information and publicly available IRS Forms 990. It also describes eligibility limits: an organization must be a U.S.-based 501(c)(3) public charity and meet additional electronic filing and financial criteria to receive an Encompass rating. Organizations may appear in its listings without a rating, including because they are newly registered, file only Form 990-EZ or Form 990-N, or do not meet other eligibility rules. Therefore, no rating is not, by itself, evidence of poor performance or misconduct. Check the evaluator’s current criteria before drawing conclusions because rating methods and eligibility rules can change.
Recency matters, too. Charity Navigator says IRS Form 990 data typically reaches it three to four months after filing. Organizations have up to 135 days after fiscal year-end to file, and many request extensions, so the filings often reach the evaluator eight to ten months after fiscal-year close. The rating page displays the form’s fiscal year-end; the evaluator also says self-reported data must be updated at least every four years. A rating may therefore draw on information that predates the page’s publication or the nonprofit’s latest activities. Check the underlying period and data sources rather than reading the star count as a live measure.
Other nonprofit databases can help locate compliance information, profiles, and grant data, and Candid describes using grant information to benchmark giving. Treat profiles as navigation and comparison aids: check whether the information is complete and current, then review underlying records or ask the organization when details are absent or stale. Evaluators also differ in purpose. GiveWell explicitly does not aim to rate every charity; its recommendations reflect its own scope and evidence standards, not a universal leaderboard.
Compare candidates without reducing the decision to one score
If you are choosing among several nonprofits, use the same questions for each and adapt their importance to your cause and goals. A comparison table can make gaps visible without pretending that all criteria have equal weight or that a total score has been validated.
| Dimension | What to compare | Questions to ask |
|---|---|---|
| Transparency | Availability and recency of filings, financial information, governance details, program descriptions, and explanations of limitations | Can you tell what the organization did, for whom, when, and what it learned? |
| Financial context | Revenue, expenses, and assets over several years; explanations for notable changes; disclosed funding sources and restrictions | Are the trends understandable, and is the information relevant to the period you are assessing? |
| Impact evidence | The stated outcome, evidence method, measured population and period, and disclosed limitations | Does the evidence address the program’s claim and the people it serves? |
| Marginal funding value | The proposed use of an additional donation and the organization’s ability to carry it out | What would this gift enable, and why is the opportunity valuable now? |
| Fit and scope | Mission, geography, population served, and intervention | Does the work match the cause, location, and approach you want to support? |
| Coverage and recency | Which years and data sources support a rating or profile, and what information is absent | Does the evaluator cover this organization, and how current is the evidence behind its assessment? |
These are comparison prompts, not a validated composite scoring model. Candid supports looking at multi-year financial trends and using grant information for benchmarking; GiveWell’s criteria support questions about evidence, cost-effectiveness, additional funding, and transparency within its own grantmaking framework. Neither source establishes a universal formula for ranking all nonprofits. If you create a private checklist, use it to expose unanswered questions rather than to imply mathematical precision.
Questions to ask when information is incomplete
A missing document, an unexplained trend, or an unmeasured outcome should lead to a focused question—not an automatic conclusion. Keep the inquiry tied to the uncertainty you found, and give the nonprofit a chance to explain its context.
- Which legal entity operates this program, and which public filings correspond to it?
- What period does this report or financial figure cover?
- What explains the most significant change in revenue, expenses, or assets?
- Which funds are restricted, and what information is available about funding sources?
- What outcome does this program seek, and how is that outcome measured?
- What limitations or unintended effects have you identified?
- What specific activity would an additional donation support, and what capacity is needed to deliver it?
Evaluate the answer for specificity and consistency with available documents. A clear explanation can add context that a summary profile lacks. A vague answer leaves the underlying uncertainty unresolved, but it should not be turned into a factual allegation without supporting evidence.
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