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Are Canadians' donations being wasted? MoneySense grades the country's top 100 charities

June 29, 2010

News Releases

TORONTO, June 29 /CNW/ – Canadians donate more than $14 billion every
year to charity, but few of us know how and where that money is spent.
Recent studies and newspaper headlines are enough to give any donor
doubts. One investigation revealed that almost one in six Canadian
charities spent more money on running the organization than on the
actual charitable work. Another shows that less than half the money
collected by for-profit contract fundraisers reaches the charities.
 
To
address the lack of information about charities available to Canadians, MoneySense
magazine has established the country’s first-ever grading system for
Canada’s 100 largest charities. These grades are not meant to measure
how successful that charity has been at achieving its program goals, but
measure how each charity compares to others in its sector when it comes
to meeting specific financial and governance benchmarks. The full
ranking is in the summer issue of MoneySense, currently on
newsstands.  
 
The MoneySense grade is based
on four criteria:

  • how much of a donor’s money is absorbed into overhead and how much
    actually goes to the cause
  • how much a charity spends to raise each additional dollar in its
    fundraising efforts
  • which charities already have years of reserves in their vaults, and
    which don’t have enough reserves
  • red flags such as poor governance and secretive charities that won’t
    divulge what they do with our money, even when donors ask

Which charities are tops?
Many Canadian charities received an
“A” grade from MoneySense. Organizations that achieved
high overall grades compared to other charities in their sectors
include: the Mennonite Foundation of Canada, the Tides Canada
Foundation, the IWK Health Centre Foundation, and the Jewish General
Hospital Foundation, to name just a few.
 
The full Charity
100 listing is available in the summer issue of MoneySense,
currently on newsstands, or by visiting MoneySense.ca.
 
About
MoneySense:

MoneySense is Canada’s personal finance and lifestyle magazine.
Packed with smart features, practical advice and easy-to-follow
financial tips on everything from home improvement to mutual funds, Moneysense
attracts Canadians nationwide on the lookout for new ways to save,
invest and spend. MoneySense.ca is Canada’s best all-around personal
finance website.