The financial statement does not state whether money raised for one thing is spent on that thing, what project money is spent on, how effective the organization is in creating change, what practices it uses in the countries where it operates, or even where it operates or what it operates (group homes for recovering sex trafficking victims, for instance?). The financial statement does reveal one thing-less than a third of its expenses are classified as “missions outreach and project ministries.” The are for toward fundraising, overhead, literature ministries, and its television channel. It’s not clear whether money raised for one program actually funds that-or even what is funded, beyond the words “project ministries.” There is no information about things like top staff salaries, and no breakdown by program area. Now, in finding the organization’s annual report, I also came upon an annual financial statement, which it releases voluntarily.
The webpage doesn’t even say what countries this initiative takes place in-and their annual report doesn’t so much as mention the project! The IRS does not require this organization to publish a Form 990.Īnd that’s it. Why isn’t this organization rated by Charity Navigator? Portions of a Charity Navigator’s evaluation are based on information published in IRS Form 990. Next I looked it up on Charity Navigator, and found that there was no rating available for the organization there, either. This organization is not required to file an annual return with the IRS because it is a church. So I looked that up on Guidestar, and got this:
Additional googling revealed that the name used in the advertisements was part of an organization with a different name: Life Outreach International. But this didn’t appear to be a small organization. That’s not all that unusual-small organizations often aren’t. When I went to look the organization up-because it had set off my scam detector senses and I was curious-I ran into a problem almost immediately: the group wasn’t listed on any charity rating system. What does this organization do? How does it use its donations? How much money does it spend on fundraising, as opposed to its program areas? Does it work with local groups, in the countries where it is present? What does it do with the children it rescues-and from what? I took down the website url that flashed upon the scene. More information about how we score this metric can be found here.The ad, playing on repeat, left me with questions. Resources to help nonprofits improve their DEI practices can be found here. Charity Navigator has developed a plan to iterate and expand upon our preliminary DEI ratings and will be rolling it out gradually in order to provide charities ample time to incorporate, report, and potentially improve their equity practices. Our preliminary assessment of the nonprofit's DEI practices was developed with the expertise and advice of dozens of leaders in the nonprofit and philanthropic sectors and is based on the Equity Strategies information collected through Candid's Demographics profile. The National Council of Nonprofits has compiled several resources and studies that document how effective DEI practices can help organizations cultivate staff belonging and motivation, improve management and governance practices, and spark innovation that can help nonprofits achieve their missions. There is a growing body of research which shows that effective DEI practices can promote a more positive organizational culture, which can influence the nonprofit's ability to achieve impact on the people and communities they serve.
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