Charity Navigator rating is worth money

What is the Red Cross' Four Star Charity Navigator rating worth? In at least one instance, it was worth $800.

When a woman came in to ask about a first aid flip chart she had obtained from the Red Cross several years, I told her I was not familiar with that product, but I would look through the brochures and fliers that I had. I  had no luck finding what she wanted. I told her I would check with other chapters and online to see if I could find what she wanted.

At that point, she told me she wanted to make a year-end charitable donation to the Red Cross. She expressed concern about charities that waste money on administrative costs and have less left over for their clients. I reminded her that the Red Cross has the coveted Four Star rating from Charity Navigator. She handed me a $200 check and continued to ask about other charities. I went to www.charitynavigator.org and searched for each charity she mentioned. Some had three-star ratings and some had four stars. I showed her the percentage of income the Red Cross uses for administrative costs and fundraising and the 92 percent of income that the Red Cross spends on its programs, according to Charity Navigator's calculations.

As we talked, she decided she would write another check to the Red Cross, this one for $600. It was the Charity Navigator rating and transparency of Red Cross finances that prompted her to quadruple her donation.

Trustworthiness and transparency are important for charitable donors.