Interested in supporting Christian causes but not sure if your money will be used wisely?
A Matthews group is trying to satisfy your curiosity by providing free online ratings so prospective donors can compare the financial efficiency of major Christian organizations.
Wall Watchers researches 400 faith-based nonprofits around the country and awards ratings from one to five stars based on its interpretation of the relative performance of all peer groups in the database. Results are at www.ministrywatch.com.
According to the organization's Web site, "Wall Watchers is a Christ-centered, nonprofit organization committed to promoting biblical principles of stewardship and helping people apply those principles in their lives."
Founder Howard "Rusty" Leonard, a former portfolio manager at Templeton, founded Wall Watchers in 1998. Based on the popular Morningside ratings, which compares and rates hundreds of mutual funds and boosted interested among investors, Leonard launched MinistryWatch.com in May.
The five-star ratings are based on financial information contained within a ministry's audited financial statements or its IRS Form 990.
More financial information empowers donors, according to Wall Watchers marketing manager Greg Evans. Ministries also benefit by increased accountability, he said: "There is a greater interest in a ministry through confidence in an organization."
Three areas of financial efficiency are examined within each ministry: fund acquisition, resource allocation and asset utilization. Ministries are divided into 16 sectors according to their specific mission, such as evangelism, rescue or broadcasting.
The rankings are based on how well - or poorly - Wall Watchers believes a ministry handles its money. Other outcomes are not measured.
Evans said the 400 organizations in the database raise $7 billion annually in revenues from 30 million American donors.
Wall Watchers is itself donor-supported. So far, the major donor has been Leonard, who has provided the bulk of a $550,000 annual budget for the 11-member staff. The organization will seek foundation grants and other sources of funding.
Wall Watchers president Mark Long said the World War II generation generally has given the most money to Christian missions, yet this group is least interested in Wall Watchers' information.
"The kind of product we're developing is primarily for a younger generation" of donors, he said. "We don't see ourselves as telling people who or what to give to. We stop short of advocacy."
The Evangelical Council for Financial Accountability (ECFA) does similar work. An ECFA brochure says its purpose is to "enunciate, maintain and manifest a code of financial accountability and reporting which is consistent with enlightened and responsible Christian faith and practice."
Wall Watchers contacts ministries for financial information and also relies on public financial records. Charitable nonprofits, referred to as 501(c)(3) organizations, must provide financial statements by law. Most groups have been cooperative, Long said, although some have chosen not to work as closely with them.
