We rate nonprofits based on their cost-effectiveness using a
combination of nonprofit data and social science. We believe strongly in transparency.
If you want to dive into our methods, start with
We search websites, GuideStar and other public databases for a set of data points
needed to calculate impact,
such as the number of meals served.
For each type of program — soup kitchen, scholarships, etc. — we build an equation to
calculate impact. This equation combines data from the nonprofit
(e.g., number of scholarships awarded) with social science research
(e.g., effect of a scholarship on future earnings). We calculate the equation for each
We then issue a star rating. To do so, we compare the nonprofit’s impact to common benchmarks.
If a nonprofit is significantly better than the
benchmark, we determine it is highly cost-effective and assign 5 stars. A high rating
indicates that the nonprofit is making good use of resources to improve the lives of
the people it serves.