(MONEY Magazine) – America's big charities seem to be spending your money more wisely. Roughly three-quarters of the 100 largest groups, listed at right and on page 136, spent more than 70% of the money they raised in 1990 on charitable programs. In 1988, only about half of them did that well. (Analysts warn, however, that the improvement may stem partly from wider use of accounting techniques that make some charities look more efficient.) Our table shows that 22 charities spent more money than they took in last year. Some who ran deficits tapped their surpluses. For example, Father Flanagan's Boys' Home spent $9.7 million of its reserves on a national expansion program. The National Association for Exchange of Industrial Resources, which donates excess office supplies to other nonprofit groups, distributed inventory left over from 1989; the group is consequently listed as spending 114.5% of its 1990 income on programs. The table's last column notes which charities meet the standards of the two leading watchdogs: the Council of Better Business Bureaus and the National Charities Information Bureau. Nine charities don't pass muster with one or both. Reasons range from low efficiency to questionable fund-raising tactics. The list is prepared from data provided by the NonProfit Times (190 Tamarack Circle, Skillman, N.J. 08558; 609-921-1251), a monthly trade publication, and excludes the United Way because the group doesn't compile nationwide audited data. If your favorite charity ranks low or isn't approved by the watchdogs, call the charity for an explanation. There may be a valid reason. For example, the American Cancer Society ranks only No. 71, in part because of an unusual budgeting system that based its 1990 program spending on money raised in 1989. If the society used the same system as other charities, it would be No. 67.

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