Can you explain Compassion’s rating on Charity Navigator?
On June 1, 2016, Charity Navigator introduced a revised method of calculation for the charities they review. This revised system
altered Compassion's 4-star rating to a 3, less than three months after awarding Compassion a 4-star rating for the exact same numbers.
There are two changes that had the most impact on Compassion’s rating. First, Charity Navigator’s updated criteria removed “revenue growth” as a measure they evaluate. Even during difficult financial times in the economy, God has blessed Compassion with dedicated sponsors and donors who care deeply about impacting children around the world, allowing our ministry to continue to grow year over year. Second, the revenue growth metric was replaced by a “debt to asset ratio.” This ratio measures the assets a charity holds on its financial statements. This change impacts Compassion’s rating negatively because we choose to send dollars to the Implementing Church Partners every month for our programs that impact children.Since 1952, Compassion's ministry model has proved to provide immense stability in the face of various economic situations. We believe our sponsors and donors are best served when their dollars are quickly put to use releasing children from poverty, not sitting unnecessarily idle in an account.
Compassion’s strong commitment to financial transparency, integrity, and our core purpose of releasing children from poverty in Jesus’ name is and will continue to be unwavering. Be assured, Compassion is committed to invest at least 80 cents of every dollar to fund the programs that benefit our Compassion-assisted children. For fiscal year 2016, 82.4 cents of every dollar were applied to these programs. In other words, our commitment to stewardship has not changed even though the calculations of Charity Navigator have undergone revisions.
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