Several organizations rate charities on the basis of their financial soundness and the percentage of funds that go for administrative expenses (the less the better). Some give only letter ratings. Others rate with stars. Some provide readable reports, and yet others provide full financial statements to those who register for free.
Charity Navigator (Click image to visit site) ranks larger charities on the basis of efficiency and fiscal stability. The site has a search engine. Note: Charity Navigator does not review small and local organizations. If you prefer national charities or large, local ones, Charity Navigator is a good place to look for a cause.
The Better Business Bureau (Click image to visit site) ranks both large and small charities as well as those that refuse to supply their financial and governance (who runs them) information. They offer fairly readable reports and have high standards.
Charity Watch (click image for link) is the American Institute of Philanthropy's site rating service. The site only lists top rated charities, but it is reassuring to see that your cause has "made the grade." Charity Watch also offers articles about specific charities. These are credible, secondary sources.
Guide Star (Click the image for the link) lists both large and small charities. It lists their mission statement and sometimes their
financial data. The site gives both an overview and free, substantial preview of the reports given to paid customers. Best of all, it
no longer requires registration.
Not all charities or causes are honest or honorable. Some simply collect money for other charities. Usually a rating agency or the charity's own web site reveals this.
Other charities engage in fraud. Both the FTC and Snopes.com discuss charity fraud on their sites.
Click charities such as The Hunger Site, do indeed donate money paid by advertisers, while all you have to do is click a mouse. Whether these causes give a sum that you would consider enough if you gave it yourself, is an open question. Fortunately, it is one you can also answer.
First, visit your charity's site and read it's mission statement, FAQ (frequently asked questions), or explanation of how they raise funds. Also, notice whether you are paid simply to reach a page full of advertisements rather than click on the ads themselves.
Click charities that pay when you click a sponsor's link donate the sponsor's cost per click (CPC or CPA) advertising fee, while advertisers that pay or donate money based on your simply viewing their ads do so on a cost-per-impression or CPM (cost per thousand views) basis. You can learn about CPM advertising at this web site devoted to it. You can also get a rough idea of real life CPC and CPM rates at Site-Ad Wiki's 2013 Media CPM Rates.Look at the rates paid for CPM advertising. Then divide these rates by one thousand to see what an individual click might earn. While most click charities do not reveal their exact CPM or CPC rates on these sites give you a rough idea of each click or view's contribution.
