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Rating Charity Finances
By Penelope Wang

(MONEY Magazine) – Giving to a good cause just got easier. No, we're not talking about finding the extra bucks to donate, but about separating well-run charities from well-intentioned money wasters. A new website called Charitynavigator.org provides free financial evaluations and zero- to four-star fiscal ratings for more than 1,000 charities. Using data from charity tax returns, Charity Navigator evaluates a nonprofit's day-to-day efficiency based on the amounts spent on fund raising, administration and programs. The group also assesses the charity's long-term financial stability by examining the growth in operating revenue, program expenses and working capital. Diligent donors can also turn to two well-established charity sites. Guidestar.org provides online tax returns for hundreds of nonprofits; analysis of the data costs $59 per charity. At Give.org, the charity research arm of the Better Business Bureau, you can find free reports on some 400 charities. --PENELOPE WANG