How Do We Classify Charities?
We classify charities by the kinds of programs and services they provide, and by the way they function financially. In sharing our ratings with givers and charities, we consistently hear the same piece of advice. Above all else, they ask that we compare organizations to similar organizations. We agree with them.
Our research indicates that while many kinds of charities function in financially similar ways, there are significant differences in the way certain kinds of charities function financially. For example, although they are both considered public charities, food banks and universities function in fundamentally different ways. In an effort to take such differences into account, we employ a two-tiered classification system, grouping charities into:
- Broadly defined Categories
- More narrowly defined Causes within each Category