The Drawbacks of Charity Research Platforms

Guidestar and Charity Navigator are two of the most well known platforms, but there are others, and there are many resources available for donors to look up information like 990s and foundations. However, it's essential to acknowledge that, like any tool, they have their limitations.

In this blog, we'll dive into some potential drawbacks to using these platforms. We've made every effort to be fair to them and ensure that we stay factual. Be sure you do your own research and verify this!

The fact of the matter is: we are not fans of these types of platforms. For a few reasons. They could have:

1. Limited Coverage:
   While these platforms boast extensive databases, they don't encompass every charitable organization. Smaller, grassroots initiatives or newer nonprofits might not have a presence. This limitation means you may miss out on discovering lesser-known but impactful causes. The amount of information is not everything. It's like the old cliche, quality over quanity.
2. Incomplete Information:
   Charities themselves provide the data on these platforms, and not all organizations offer comprehensive or up-to-date information. This can make it challenging to evaluate their effectiveness, transparency, and recent achievements accurately. To an extent, charities can inflate or deflate certain numbers, and they can move things around, so even though you can access the information, it doesn't make it useful or complete.
3. Reliance on Financial Metrics:
   Many charity rating systems focus heavily on financial metrics, like overhead costs and administrative expenses. While financial transparency is vital, it may not tell the whole story about an organization's impact. A charity with higher administrative expenses might still be highly effective in achieving its mission. Similarly, an organization spending most of their resources on programs could have scandals that just can't be identified in a 990, a budget, or a questionnaire.
4. Potential Bias:
   Rating criteria on these platforms can be subjective or influenced by specific factors. This can lead to bias in favor of larger, well-established charities. Smaller, innovative organizations making significant impacts might not receive the recognition they deserve.
5. Changing Data:
   Charities' financial data and performance can change over time. The information you find on these platforms may not always reflect an organization's current status. It's essential to verify data independently, especially if you're making a substantial donation.

In conclusion, while charity research platforms like Guidestar, Charity Navigator, or others may be valuable starting points for your charitable giving journey, they shouldn't be your sole source of information.

To ensure your donations have the desired impact, use these platforms when needed in a limited way and also conduct your research -- which may include with direct communication with charities, reading annual reports, seeking independent reviews, and getting recommendations from trusted sources. Remember, donations should be informed, and no single source of information should be all you need to make a decision.

Note: Charity research platforms are different. This may not apply to every tool or service. Do your own research. Good luck!