Minneapolis, Minn. (Nov. 10, 2005) – Changes in the Charities Review Council review system over the next few years are expected to encourage hundreds of charities to undertake a review by the Council. This in turn, should raise the number of reviewed charities to an estimated 1,000 over the next three years, helping donors to make smarter giving decisions, according to Rich Cowles, executive director, Charities Review Council.

The new software-based system will allow charities to complete a self-assessment, which will then be independently verified by Council staff. In addition to increasing the number of nonprofits the Council reviews, the new system will allow the Council to provide more and better information to donors about area charities. The Council also plans to help donors connect with each other through a Smart Givers Network.

The Council’s staff and board members have spent much of the last two years investigating the best way to change the Council for the future, so that it can be of more use to donors, and more educational for nonprofits. In 1967 the Attorney General’s Office reported 360 registered charities; today that number has grown to more than 6,500.

“We recognized for some time that having current reviews on fewer than 300 charities was no longer sufficient,” Cowles said. “Yet, we want to keep the system credible for donors and educational for the nonprofits who are involved. Over the last few years, numerous nonprofits have asked us to review them, but because of limited staff we have been unable to increase the number of charities we review. The new system will make many more reviews possible.”

Both individual charities and institutional grant makers as well as many leaders in the nonprofit arena were consulted prior to making this change. Testing of this new system is currently underway and the system should be available on the Internet for use by charities later this year. Donors will have access to the results from this system before mid-year 2006.     

The new online tool, known as the “Accountability Wizard,” is designed to be educational for the nonprofit, while providing additional information to potential donors. Charities will determine whether or not they meet the Council’s standards of accountability. Council staff members will be available to help charities through the process. 

Prior to review, nonprofit organizations are being asked to pay a small up-front accreditation fee (.0001 of annual expenses, with a minimum of $100 and a maximum of $1,500). All reviews will continue to be good for three years.  Charities that meet all of the standards will be given the right to use the Council’s accountability seal.  

“Our goal is to help nonprofits improve their policies and procedures,” Cowles explained. “Because nonprofits will enter the information themselves and there are built in software checks, the staff time it will require from the Council is reduced significantly. We hope to have as many as 1,000 charities reviewed within the next three years, as compared to less than 300 on which we have current reviews today.”

The Council also plans to establish a Smart Givers Network that will encourage potential donors to gather information and, if desired, share their charitable goals with others. The Network will provide traditional information on charities, but will also help connect givers with others who have similar interests via e-mail.

As issues arise or public policy changes, the Network will provide information to the public, so that they can be more informed. “Our objective is to help develop and connect a growing community of informed givers,” Cowles said. “In the future, it is possible that several participants may desire to pool their money, so that they can have a greater impact in the nonprofit arena.”  

While the Charities Review Council will continue to serve charitable donors with objective information on charities, it is also focused on helping nonprofits understand accountability expectations of the public and meeting those expectations. The Council also helps the public understand nonprofits and their unique role in improving society, their challenges and their dependence on voluntary contributions.