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Find out more about transprency

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Transparency Grade Guidance. Rational for transparency grade.

Transparency Grade

Overview

The MinistryWatch.com?s Transparency Grade provides donors with an insight into a ministry's commitment to transparency and help?s donors search out those nonprofit Christian ministries that excel in the area of Transparency.

People give to their favorite charities for many reasons ? some because they have a heart for the mission, some because they have been helped by the charity, others because they know the people and like the organization. Whatever the reason, in every instance a bond of trust develops between donor and charity. Transparency is at the heart of long-term trust in any relationship. Donors want to make wise giving decisions. Without access to comprehensive ministry information it is not possible for donors or donor advocates like MinistryWatch.com to make optimal giving decisions. Charitable organizations that seek to obscure critical information from scrutiny undermine the faith and trust of the donor and damage donor attitudes that have an impact well beyond their own operations. Accordingly, transparency is a key component to a growing and prosperous Christian Ministry Marketplace and fundamental to long-term ministry success.

How Transparency is Assessed

Transparency is assessed based on four areas: (1) timelines, (2) financial information available, (3) foundational clarity, and (4) level of cooperation. In order to make this assessment, Wall Watchers requests information and evaluates the response. A score is assigned between 0 and 100, with 0 reflecting worst practice and 100 reflecting best practice. However, each ministry will be considered in light of its own unique circumstances.

The scores for the four areas are averaged to determine an overall transparency score. For example, if an organization scored a 100 in the first question, a 90 in the second question, an 80 in the third area, and an 80 in the fourth area, its overall transparency score would be 87.50 (350 / 4).

The grade is based on the following scale: 0-60 = F, 61-70 = D, 71-80 = C, 81-90 = B, 91-100 = A. In this example, the overall transparency score of 87.50 would translate into a MinistryWatch.com Transparency Grade of B.

Functional Purpose of the Transparency Grade

The Transparency Grade exists to provide insight into a ministry?s willingness to be transparent in disclosing vital information in a timely manner, and also to encourage ministries to provide information necessary for MinistryWatch.com to produce comprehensive reports for Christian donors. These reports are much like an investment bank?s research report on a corporate stock or Morningstar report on a mutual fund and aid the donor in understanding the key issues concerning a ministry?s operations. The reports include information on the ministry?s purpose, organizational details, its mission statement, history, program accomplishments, the ministry?s current needs, as well as financial efficiency ratings. Some also contain an expert subjective analyst report that includes information on the ministry?s strengths, weaknesses and theological positions, or a MinistryWatch.com Donor Alert, if one has been produced. Additionally, financial ratios, historical income statements and balance sheets as well as recent news items relating to the ministry are displayed. Many of these features would be unavailable or severely limited if the ministries did not provide the requested information. Of course, we are hopeful that ministries, because of the biblical mandates of responsible stewardship and accountability, would be readily forthcoming with information, but that is not always the case. Additionally, the Transparency Grade can be a positive consideration by donors. A ministry with a high Transparency Grade sends the important message to donors that it takes its biblical stewardship and accountability mandates seriously.

Looking Ahead

There are many other factors that could be considered in determining transparency. These other factors include membership in accountability groups, internal policies, and fundraising practices, to name just a few. However, MinistryWatch.com believes that the best indication of an organization?s transparency is how it responds when those commitments and policies are actually put to the test. Donors are not impressed with what ministries say they will do, but what they actually practice. This system tries to assess that commitment within organizations. In the future, more comprehensive assessments of transparency may be possible.