CharityWatch uses a letter-grade rating system that also looks at the percentage of overhead spent on programs, the cost of fundraising, and other measures of efficiency.
“Charities that are A-rated generally spend at least 75 percent or more on their programs, so more of your money goes to causes you want to support,” says Stephanie Kalivas, analyst at CharityWatch.
For example, CharityWatch gave the Disabled Veterans National Foundation, which spent only 4 percent on its programs, an F, while the National Military Family Association, which spent 82 percent, received an A.