When you go to a business website, you’ll often see badges that indicate the company has been recognized by a professional or industry organization for achieving a top rating or certification, or simply for being a member. Some of these designations are more meaningful than others.
In the world of small nonprofits, there are third-party nonprofit or charity rating services that can carry a lot of weight and even boost donor retention. You just have to go beyond placing a badge on your website and think strategically!
Let’s discuss the top nonprofit rating services, what these ratings say about your nonprofit, and how they can support your fundraising efforts.
Popular Nonprofit Rating Services
Here are three of the top nonprofit rating services, a general overview of the criteria for their rating systems, and what they aim to convey to potential donors.
Charity Navigator
From the website: “Our rating system includes assessments across four main domains that influence nonprofit success: Accountability & Finance, Leadership & Adaptability, Culture & Community, and Impact & Measurement.”
Candid (merger of GuideStar and Foundation Center)
From the website: “We find out where that money comes from, where it goes, and why it matters.” Nonprofits can earn a platinum, gold, silver, or bronze seal of transparency by sharing information about donations, leadership, programs, financials, and more.
GreatNonprofits.org
From the website: To qualify for a top-rated badge, nonprofits must “invite clients, donors, and volunteers to share their story, get 10 positive stories within the campaign period, and maintain an average of 3.5+ stars.”
There are many more charity rating organizations, such as the Better Business Bureau (BBB), CharityWatch, and GiveWell. Each has its own criteria and areas of focus. Before devoting the time and resources to any of these services, carefully consider how much value a positive rating will bring to your small nonprofit.
Connecting the Dots Between Nonprofit Rating Services and Donor Retention
A badge that indicates a high rating from a nonprofit rating service typically means the organization is delivering on its mission. Operations are sound. Financials and all other paperwork are in order and filed on time. The organization has a solid foundation.
When donors are thinking beyond their annual or monthly gifts and considering a long-term, planned giving strategy (wills, trusts, retirement assets, investments, endowments, etc.), they want to feel confident in the sustainability of your nonprofit. They want to see that it’s well-run, well-funded, and well-positioned to continue its mission.
In other words, if they create a plan to donate down the road, nonprofit rating service badges show there’s an excellent chance your nonprofit will be functioning at a high level, and the gift will have the donor’s desired impact.
Turning a Nonprofit Rating Badge into a Donor Retention Tool
Simply displaying a badge provides a certain level of credibility, but you can do so much more than place a badge on your website!
What requirements did your nonprofit satisfy to be awarded the badge? What information did you have to provide? What did you have to demonstrate in terms of operations, financials, and your mission? Why did your nonprofit devote the time and resources to obtaining this recognition?
Answering these questions conveys the “why” behind the nonprofit rating service badge so it carries more weight and donors better understand its value. Why is it important? Why should it make donors more confident about continuing to give?
Consider including these explanations on a page of your nonprofit website. You can also explain the meaning of a badge in a social media post, using an image, video, or a simple link back to your website. When people have a deeper understanding of their meaning, you can then add badges to your email template, appeal letters, impact reports, and other marketing and fundraising materials.
When you approach nonprofit rating service badges strategically, they’ll be seen as more than a stamp of approval. Badges will tell donors that your nonprofit is a strong organization that’s worthy of their gifts, now and in the future!
