Sarah Mitchell
Catholic Charities USA is a nonprofit organization with a 100-year history of aiding vulnerable people and advocating for justice in social structures. It is one of the nation's largest providers of safe and affordable housing, with over 38,000 permanent units, and also provides healthy food options for those at risk of hunger. Charity Navigator, which evaluates nonprofits based on accountability and financial health, gave Catholic Charities a 100% score, earning it a four-star rating. However, Charity Navigator also notes that they have not received data from Catholic Charities regarding its leadership capacity and constituent feedback, which prevents them from evaluating the organization in the Leadership & Adaptability and Culture & Community categories. Forbes also ranks the top 100 U.S. charities based on private contributions received, and CharityWatch recognizes top-rated charities that meet specific criteria, including financial transparency and spending a large percentage of their budget on programs.
| Characteristics | Values |
|---|---|
| Charity Navigator Score | 100% |
| Charity Navigator Rating | Four-Star |
| Founded | 1910 |
| Forbes Top Charities Ranking | Not mentioned in the list for 2024 |
| CharityWatch Top-Rated | Not mentioned |
| Compensation Ratio | 6.9 |
| BMF Affiliation Code | 9 |
| Number of Permanent Housing Units | 38,000+ |
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What You'll Learn
Catholic Charities USA's ranking criteria
Catholic Charities USA is one of the nation's largest and most comprehensive human service organisations, with a more than 100-year history of engaging with parishes and supporting their efforts to care for the poor and vulnerable and to work for justice. The organisation provides care and pushes for justice in social structures. It is committed to encountering those in need, regardless of their faith.
Catholic Charities USA has a network of agencies that provide safe, decent, and affordable housing, as well as emergency housing, and healthy food options for those at risk of hunger. They also provide support for survivors of natural disasters.
CharityWatch, another charity watchdog, includes charities on its Top-Rated list that generally spend 75% or more of their budgets on programs, spend $25 or less to raise $100 in public support, do not hold excessive assets in reserve, and have met CharityWatch's governance benchmarks. They also consider the disclosure of basic financial information and documents. These criteria help evaluate the financial health and accountability of charities like Catholic Charities USA.
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Charity Navigator's rating methodology
Charity Navigator is a platform that helps donors and nonprofits by assessing and rating the financial health and accountability of charitable organizations. Charity Navigator's ratings are essential for donors who want to make impactful donations and nonprofits that want to build trust and credibility. Charity Navigator has created methodologies for 17 program areas and is working on expanding its methodologies to include more types of organizations.
The Encompass Rating System assesses four domains or "beacons", which are weighted differently and result in a numeric score between zero and 100 and a related 1- to 4-star rating. The four beacons are Accountability and Finance, Leadership and Adaptability, Culture and Community, and Impact and Measurement. The absence of a score in some beacons for a particular charity does not indicate a positive or negative assessment but only that Charity Navigator has not evaluated the organization. For instance, Catholic Charities cannot currently be evaluated by the Culture & Community methodology because Charity Navigator has not received data regarding constituent feedback.
The impact score is calculated based on organization-submitted data on program outcomes and program expenses. The cost-effectiveness of the program is then assessed as either highly cost-effective, cost-effective, or not cost-effective, with scores of 100, 80, and 65, respectively. Charity Navigator also looks for a website on the IRS Form 990 as an accountability and transparency metric. Nonprofits are expected to report publicly on their activities, and Form 990 is a document that nonprofit organizations file annually with the IRS. Charity Navigator also looks for the existence of conflict of interest and whistleblower policies as accountability and transparency measures. These policies protect the organization and outline procedures for handling employee complaints, respectively.
Charity Navigator uses data from the IRS, partners, and the charities themselves to power its unbiased ratings. Charity Navigator is also a nonprofit, and there is no charge to the charities it rates, ensuring the objectivity of its evaluations and ratings.
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Forbes' ranking of Catholic Charities
Forbes has released its list of the top 100 charities in the United States for 2024, with rankings based on the amount of private contributions received. Cross Catholic Outreach, a Catholic nonprofit 501(c)(3) relief and development ministry, has been named one of America's Top 100 Charities by Forbes, ranking 42nd on the list. In 2024, the organisation secured $443 million in private contributions, with a charitable commitment of 94% and a fundraising efficiency rate of 97%. Forbes also recognised Catholic Charities USA, ranking it 11th in 2018. The NonProfit Times ranked Catholic Charities USA as the second-largest nonprofit organisation in the United States, while The Chronicle of Philanthropy ranked it 10th among the nation's largest fundraising organisations.
The Forbes list includes charities that provide disaster relief, address income inequality, and meet domestic and international needs. The 2024 list had a cutoff of $194 million in donations, up from $186 million in 2023. The top 100 charities received nearly $64 billion in private donations in their most recently reported fiscal year, a 4% increase. This exceeded the 2% increase in charitable giving among the country's two million nonprofits, highlighting the brand names in the not-for-profit sector.
The Forbes list serves as a valuable resource for donors, providing insights into the financial efficiency and compensation practices of charities. It is worth noting that results may be skewed due to unconsolidated data, rounding, or incomplete information. Forbes also emphasises the importance of evaluating charities based on their impact and transparency, in addition to their ranking.
While Catholic Charities has a strong presence in the Forbes rankings, it is important for donors to research and align their contributions with organisations that reflect their values. Some Catholic charities have been reported to distribute birth control, deviating from the Church's teachings. Therefore, due diligence is essential before making donation decisions.
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CharityWatch's rating criteria
CharityWatch is an independent charity watchdog that helps donors find charities that will use their donations efficiently. CharityWatch analysts perform in-depth evaluations of complex charity financial reporting, including audited financial statements, tax forms, and annual reports.
CharityWatch considers a charity to be highly efficient when their calculations produce a Program Percentage of 75% or greater and a Cost to Raise $100 of $25 or less. Charities that meet these criteria are included on the CharityWatch Top-Rated list.
To receive Top-Rated status, a charity must meet the following criteria:
- A charity must earn a grade of B+ or higher, as calculated by CharityWatch, for the financial year rated.
- A charity must not hold excessive assets in reserve.
- A charity must meet CharityWatch’s Transparency benchmarks. This includes posting a complete copy of its most current, independent audited financial statements on its public website. It must also provide complete copies of its IRS Form(s) 990 to CharityWatch upon request and may be required to answer questions related to its financial reporting and/or provide additional information or documentation.
CharityWatch has identified several F-rated charities that receive top ratings and seals from other raters, including Charity Navigator and Candid. Charity Navigator, for example, gives Catholic Charities a 100% score, earning it a Four-Star rating. Catholic Charities, founded over a century and a half ago, is one of the largest charities that provides care and support to vulnerable people, regardless of their faith.
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Catholic Charities' financial health
Catholic Charities USA is the national voluntary membership organisation for Catholic Charities agencies across the United States and its territories. It is a member of Caritas Internationalis, an international federation of Catholic social service organisations. Catholic Charities USA is the national office of 167 local Catholic Charities agencies nationwide.
Catholic Charities has a history of more than 100 years of engaging with parishes and supporting their efforts to live out the Gospel, care for the poor and vulnerable, and work for justice. The organisation is rooted in the belief that every person is made in God's image and responds to clients' economic, social, cultural, personal, and spiritual needs. Catholic Charities provides healthy food options for those at risk of hunger through food banks, schools, daycare centres, and community farms, among other outlets. It also offers housing, with more than 38,000 permanent units for families, seniors, veterans, and others, as well as temporary and emergency housing.
Catholic Charities USA is financially healthy and transparent. It is listed as an Accredited Charity by the Better Business Bureau Wise Giving Alliance. In 2010, Catholic Charities had revenues of $4.7 billion, $2.9 billion of which came from the US government. About $140 million came from donations from diocesan churches, with the remainder from in-kind contributions, investments, program fees, and community donations. Catholic Charities uses about 89% of its revenue for program costs.
Charity Navigator gives Catholic Charities a 100% score, earning it a Four-Star rating. This overall score is calculated from a single beacon score that assesses the charity's financial health and its commitment to governance. Charity Navigator's rating is based on accountability and finance data from Form 990, which nonprofit organisations file annually with the IRS. The form includes transparency and accountability metrics such as conflict of interest policies and whistleblower policies.
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Frequently asked questions
Catholic Charities was not included in Forbes' 2024 list of the top 100 US charities. The list is based on the amount of private contribution received.
Catholic Charities has a 100% score, earning it a Four-Star rating from Charity Navigator. However, Charity Navigator notes that Catholic Charities cannot currently be evaluated using their Culture & Community and Leadership & Adaptability methodologies due to a lack of data from the charity.
Charity Navigator looks for the existence of certain policies on the IRS Form 990 as accountability and transparency measures. These include a conflict of interest policy and a whistleblower policy. Charity Navigator also considers the organization's financial health, including financial efficiency, sustainability, and trustworthiness.
Catholic Charities USA is a more than 100-year-old organization that provides services to people in need and pushes for justice in social structures. The organization is rooted in the belief that every person is made in God's image and responds to clients' economic, social, cultural, personal, and spiritual needs.
People can support Catholic Charities USA by making a one-time or recurring donation. They can also give property or real estate to the organization.
