Project HOPE Earns GuideStar’s Highest Ranking Again This Year

This fall, Project HOPE earned GuideStar’s Platinum Transparency Seal for the third year in a row. GuideStar is one of the top agencies known as a charity watchdog and is a powerful tool for donors to review a nonprofit’s work, impact, leadership, and financials.

What are charity watchdogs and why are they important?

Charity watchdogs are organizations that provide information, reviews, and ratings of nonprofits. Each has its own method for gathering and presenting information, but all provide insight into the daily operations of nonprofits and help donors determine if the charity is legitimate.

They can be a valuable tool for supporters to learn more about the organizations they care most about — and make certain the charity is doing what it set out to do.

“When donors are researching charities to give to, they often turn to watchdog sites to see what a neutral third party is saying about the charity,” says Christine Newkirk, Project HOPE’s Senior Director of Operations.  “As a donor myself, I always check these groups and IRS tax forms to research who I want to support with my own giving.”

For this reason, Newkirk feels it is important for Project HOPE to have a profile on charity watchdog sites: doing so builds trust with donors and potential donors.

“It’s important for Project HOPE to provide as much information about our organization as possible for donors,” she says. “More so, we want to make sure donors can find this information easily and that it is up to date.”

Scott Davison, a major gifts fundraiser at Project HOPE, agrees it is important for charities to actively participate in independent reviews.

“I think charity watchdogs are critical to a nonprofit’s overall transparency and accountability,” he says. “They help hold nonprofits accountable for their actions and adherence to ethics through an examination of financial statements, governance, and inner workings.”

How does GuideStar’s screening process work?

GuideStar collects information through IRS filings, public documents, and information provided by charities, like annual reports. It then organizes this information and creates a charity profile.

To earn an added seal of transparency, nonprofits must submit for review different levels of detailed information and documents.

To earn the Bronze Transparency Seal, an organization must provide a basic history and an overview of program areas, whereas the silver level requires this same information plus financial data.

To earn the platinum-level seal, Project HOPE had to provide the above, as well as current information on its board and senior leadership; its diversity, equity, and inclusion strategy; and data showing its program impact.

All in all, it can take several weeks to compile. But Newkirk says that work is worth it because it shows not only an organization’s work, but whether that work is actually making an impact in the world.

“Each charity watchdog has different levels of thoroughness,” she says. “Some are very focused on financial information in the 990 [IRS form], while others have sections on legal or human resource departments. GuideStar stands out because it not only looks at finances as one indicator, but also reviews our programming and the impact we have in the world. I find their approach to be quite unique among charity watchdogs because of the wide array of information they request.”

GuideStar also allows 230 other third-party platforms to share its information – sources like Facebook, Fidelity Charitable, and Network for Good.

“Project HOPE values meeting donors where they are and helping them feel confident about making a gift to us,” Newkirk says. “GuideStar understands this too. They make sure the information is accessible on platforms and in places they know donors will be at.”

Erin Harkins-Medina, a member of Project HOPE’s Leadership and Legacy Giving team, says she appreciates when donors have key information in hand. As a major gift fundraiser for Project HOPE, it gives her an opportunity to connect better with a donor.

“When I am asked about our ratings, it allows me to have a deeper conversation with the donor about what we do and how we use their money wisely,” she says. “It feels like an opportunity to go beyond talking points and have a holistic conversation with a donor about the organization.”