(MONEY Magazine) – When the federal government wants to know the risks of dismantling nuclear weapons, the health consequences of Persian Gulf War service or whether baby boomers are saving enough for retirement, it turns to our top education and culture charity: the National Academy of Sciences (NAS). This unique, nonprofit group, a private agency that was created by Congress in 1863 to review scientific issues of public interest, has spent on average 92% of its income on programs over the past three years.

About 80% of the academy's funding comes directly from the federal government as payment for the reports it requests. To prepare those studies, teams of 15 to 20 leading scientists, academics and NAS staff members spend 18 months to two years scrutinizing the range of academic findings on the topic, occasionally doing original research, and then issuing their recommendations. And when the National Academy talks, Congress often listens. For example, Congress passed a law banning smoking on domestic flights less than two hours long after a 1986 NAS study of air quality on airplanes found that on-board smoking was hazardous to crew members and other passengers.

Science education is another NAS goal. To that end the agency is sponsoring science television programs, encouraging scientists to visit classes in their communities, and working on a nationwide initiative to improve science teaching and testing standards for elementary and high school students.

Fund raising is minimal, since most of the group's money comes from the government. Nonetheless, the NAS slashed its staff by 8%, to 1,200, during the past year to lower expenses. Also, the fact that the most prestigious scientists in the country-including Harold Varmus, a Nobel prizewinner who currently heads the National Institutes of Health-work for free helps too. The 10,000 or so academics and other experts who work part time on NAS projects each year get reimbursed only for expenses.

By contrast, a much newer nonprofit group also created by Congress shows up at the bottom of the efficiency ranking below. The United States Holocaust Memorial Council, set up in 1980 to build and operate the new United States Holocaust Memorial Museum in Washington, D.C., spent an average of only 23% of income on programs during the past three years. Its program numbers are slightly misleading, though, because the $100 million cost of building the museum is considered by generally accepted accounting principles to be a capital expense rather than a program. If the $40 million spent on the building in 1993 were included in program spending, the group would have spent a respectable 74% of its income on programs this year.

EDUCATION AND CULTURE RANKING

Rank/charity/telephone number Okay with the top two watchdogs (HH);one (H);none (-); Income in millions; Program spending as a % of income; Comments