A message from CharityWatch CEO & Executive Director, Laurie Styron
Your charitable dollars are investments. They may not produce financial returns for you personally, but they carry the same expectations of stewardship and accountability as any capital you put into the world. Yet unlike traditional investments, charitable giving takes place in a marketplace flooded with unaudited data, flawed metrics, and pay-to-play ratings that often obscure the true performance of nonprofits. Before giving, you should insist on the same level of clarity you would demand before placing money into any financial product.
As CEO of CharityWatch, I see the same story unfold again and again. Donors give in good faith, often making real sacrifices to do so, only to later discover that the charity they supported spent most of their gift on overhead, inflated salaries, or fundraising gimmicks. What follows isn’t just disappointment. It’s grief. When donations meant to help others are squandered, people lose faith not only in one organization but in the very idea of charity.
This holiday season, millions of Americans will once again open their wallets to support causes they care about. If you are one of them, before you click “give” you should understand that many of the charity ratings you rely on for guidance aren’t designed to protect you. They’re designed to keep money flowing to charity stakeholders and other industry interests that profit from your donations in the form of consulting and processing fees, telemarketing and direct mail services, and other arrangements. CharityWatch has found many examples of charities that spend two-thirds or more of their annual expenses on overhead while continuing to receive perfect scores on industry-funded charity rating websites.
The nonprofit sector actively promotes rating systems that rely on automation and crowdsourcing precisely because they are easy for charities to manipulate to achieve flattering results. These systems scan unaudited tax forms or self-reported “impact” data and spit out ratings and seals biased in the charities’ favor that are far more reflective of marketing strategies than of financial performance. A charity can classify fundraising costs as “education,” or inflate the value of its in-kind donations to distort how it uses its cash, all while maintaining high ratings on charity evaluation websites. Gaming rating systems is encouraged, not punished.
| Charity / Nonprofit | Fiscal Year | CharityWatch Rating | CharityWatch Program % | Charity Navigator Program % | Most Recent Candid Seal |
| Adoptaplatoon Soldier Support Effort | 12/31/2024 | F | 14% | *See footnote | Gold |
| AMVETS National Service Foundation | 8/31/2023 | F | 27% | 82.6% | Not Rated |
| Disabled Veterans National Foundation | 9/30/2024 | F | 7% | **See footnote | Gold |
| Help Heal Veterans | 7/31/2023 | F | 24% | 46.2% | Platinum |
| Homes for Veterans | 9/30/2023 | F | 15% | 69.7% | Platinum |
| Mutts With a Mission | 12/31/2022 | F | 7% | 75.8% | Platinum |
| Native American Veterans Assistance | 12/31/2023 | F | 24% | 81.7% | Not Rated |
| Paralyzed Veterans of America | 6/30/2023 | F | 34% | 55.9% | Not Rated |
| Purple Heart Foundation | 6/30/2024 | F | 17% | 20.8% | Not Rated |
| Veterans of Foreign Wars | 8/31/2024 | F | 46% | Not Rated | Not Rated |
| Veterans Relief Network | 12/31/2022 | F | 7% | 7.5% | N/A |
*Charity Navigator’s most current rating of Adoptaplatoon is based on the charity’s fiscal year ended 12/31/2023. The most current financial reporting year evaluated by both CharityWatch and Charity Navigator was 12/31/2022. For that year, CharityWatch analyzed Adoptaplatoon’s IRS Form 990 and audited financial statements and determined that the charity spent only 24% of its cash expenses on its programs, and spent the remaining 76% on overhead. By comparison, Charity Navigator’s automated rating of Adoptaplatoon calculated that the charity spent 80.8% on its programs and just under 20% on overhead.
**Charity Navigator’s most current rating of Disabled Veterans National Foundation (DVNF) is based on the charity’s fiscal year ended 12/31/2023. The most current financial reporting year evaluated by both CharityWatch and Charity Navigator was 12/31/2022. For that year, CharityWatch analyzed DVNF’s IRS Form 990 and audited financial statements and determined that the charity spent only 5% of its cash expenses on its programs, and spent the remaining 95% on overhead. By comparison, Charity Navigator’s automated rating of DVNF calculated that the charity spent 21.7% on its programs and the remainder on overhead.
Donors have understandably lost trust. And instead of working hard to earn that trust back in earnest, much of the nonprofit sector has responded by telling donors to stop asking tough questions about “overhead” and to instead focus on “impact” – a word so vague it can mean almost anything. And that’s the point. When each charity can create its own definition of “impact,” this allows it to move goal posts at will, formulating measurements to always look like it’s succeeding. Truth be damned. If you would not be willing to accept this kind of data as an investor, you should not be willing to accept it as a donor.
You deserve better. But the takeaway here is not to stop being generous. The fact is, most charities operate efficiently and responsibly, staffed by dedicated people who work tirelessly for little pay and even less appreciation. The decision you must make is not whether to give at all, but rather how to give wisely in a landscape where information is often unreliable.
View Complete CharityWatch Rating Criteria
| Charity Name | Charity Watch Rating | Fiscal Year | Charity Navigator Rating | “Data Up Until” Fiscal Year | Candid Seal | Candid Seal Calendar Year |
|---|---|---|---|---|---|---|
| Dreamchaser PMU Horse Rescue & Rehabilitation | F | 2023 | 1-Star | 2023 | Platinum | 2024 |
| Front Range Equine Rescue | D / F | 2023 | 4-Star | 2024 | N/A | N/A |
| Paws of Honor | F | 2023 | 2-Star | 2023 | Platinum | 2025 |
| Pilots to the Rescue | D | 2023 | 4-Star | 2023 | Platinum | 2025 |
| Project K-9 Hero | D | 2023 | 4-Star | 2023 | Platinum | 2025 |
| Redwings Horse Sanctuary | D | 2023 | 2-Star | 2024 | Platinum | 2024 |
| SPCA International | F | 2023 | 3-Star | 2024 | Platinum | 2025 |
| Tiger Creek Animal Sanctuary | D | 2023 | 1-Star | 2023 | Gold | 2025 |
| Tiger Haven | D | 2024 | 3-Star | 2024 | N/A | N/A |
The chart above contains select examples of animal charities to which CharityWatch has assigned “D” and “F” ratings as of 9/30/2025 based on our criteria. Charity Navigator’s ratings and Candid’s seals were retrieved from those websites in September 2025 and reflect each charity’s current rating or transparency seal as of the date retrieved. NOTE: Candid’s seals are based on charities’ self-assessments and do not include a financial measurement of how efficiently a charity is using its donations. Charity Navigator’s ratings are based on what charities report about themselves in their unaudited tax filings.
The number one piece of advice I have for donors is the same one any seasoned investor would understand: choose the investment, don’t let the investment choose you. No prudent investor would pour money into a get-rich-quick scheme just because someone manufactured a sense of urgency or played on their emotions. Yet many charities rely on exactly those tactics: high-pressure appeals, artificial “matching donation” deadlines, and emotionally charged messaging designed to elicit impulsive donations before you have time to verify how your money will actually be used. In philanthropy, as in investing, reactive decisions are rarely wise ones. By being intentional and proactive in selecting which organizations to support, you protect both your capital and your impact.
Ask yourself, “What causes do I care about most?” Also, “What can I afford?” Set a budget for how much you would like to donate this year and commit to supporting no more than five charities. Even highly efficient nonprofits have overhead related to processing your donation and maintaining relations with you, so giving higher amounts to a handful of organizations will keep overhead costs reasonable and maximize the impact of what you have to give.
A good cause does not automatically equal a good charity. Look for nonprofits with good reputations and proven track records of financial efficiency and responsible governance. Don’t rely on charity ratings without understanding the rigor of the methodology used to produce them and the independence of their source. And if you are receiving nonstop phone calls, fundraising letters, or gala invitations from a charity hounding you for donations, chances are it is spending more on asking people for money than it is on its programs.
Once you have narrowed down potential charities to support, consider which ones have programs that align with your values. One might provide direct grants and services to people in need, while another might conduct advocacy campaigns. One research organization might conduct animal testing, while another avoids it. One nonprofit may need funds to expand the scope and scale of its work, while another needs support for its general operations.
As this year of giving comes to a close, remember that capital deployed without scrutiny rarely produces meaningful results. The nonprofit sector is no exception. Don’t reward organizations that hide behind automated ratings, inflated impact claims, or opaque financial practices. Reward the ones that open their books, manage expenses responsibly, and demonstrate measurable value for every dollar they receive. When donors insist on accountability, nonprofits have no choice but to rise to meet it. Your donation is leverage. Spend it wisely.
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