Charity Navigator, the 501(c)3 charity rating organization, has provided additional information on the proposed changes to their new rating system. The new system, according to a release, will “will bring together our legacy Charity Navigator 2.1 (Star) system with our Encompass Rating System, rating more than 200,000 nonprofits.” Among other changes, all organizations will be rated on a star system, as well as have the opportunity to be rated for additional “beacons” that indicate more nuanced performance. Charity Navigator, like other charity rating organizations, plays a vital — although sometimes criticized — role in communicating nonprofit trustworthiness to the general public. Nonprofit organizations should pay close attention to how their organization is portrayed by rating organizations, as discerning donors will often use them to verify legitimacy. Whole Whale, the publisher of this newsletter, offers a guide for communicating transparency and legitimacy to donors.

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