We look at a number of things. We look at financial transparency, so how transparent the charity is with its financial statements. We look at donor accountability, so how well the charity reports on what it does and how it spends money. We look at some financial metrics to make sure that they aren't spending too much money on fundraising and administration. We look at something that we call “program cost coverage” to see how much cash a charity has sitting around on its balance sheet and whether it would be able to continue to fund its programs for eight years or for two months.
On August 13th, 2020. See this statement in context.