CHARITY NAVIGATOR, AMERICA’S largest and most-utilized independent evaluator of charities, has awarded the Humane Society of Huron Valley (HSHV) the prestigious 4-star rating for good governance, sound fiscal management and commitment to accountability and transparency for the third year in a row. Other local charities that scored four stars from the watchdog group include the University Musical Society, Food Gatherers, The Hope Foundation and Jewish Family Services of Washtenaw County.

Only 12 percent of the charities rated by Charity Navigator receive three consecutive 4-star evaluations. This “exceptional” designation from Charity Navigator differentiates HSHV from its peers and demonstrates to the public that HSHV “is worthy of the public’s trust,” according to HSHV officials.

“We are honored to receive Charity Navigator’s highest rating,” said Tanya Hilgendorf, HSHV CEO. “This distinction reflects our accountability to all our constituencies and commitment to remain true to our mission to provide loving, responsible care for all animals in our community.  We do not take the privilege of caring for our community’s most vulnerable lightly.  We owe it to those we serve and to those who enable us to do this important work to be the best we can possibly be.  It is our obligation to be cautious with our resources, to abide by best practices, and to measure and openly report the results of our efforts.”

Charity Navigator works to help charitable givers make intelligent giving decisions by providing information on more than five thousand charities nationwide and by evaluating their financial health. It calculates each charity’s score based upon several broad criteria, including how much is spent per dollar raised, what percentage of funds goes to programs vs. administrative and fund-raising expenses, and the organization’s long-term financial health. It then assigns a rating from one to four, with four being the best rating.

Charity Navigator (charitynavigator.org), rates about 6,000 nonprofits. It does not rate the Salvation Army, for instance, because religious groups don’t file IRS Form 990. Charity Navigator says it lacks “sufficient data to evaluate their financial health.”

Different conclusions are reached by CharityWatch (charitywatch.org; 773-529-2300), which focuses on about 600 nonprofits and examines audits and other information beyond the 990s, providing detailed reports to members who donate at least $50 a year. “We’re not just taking what the charity says and reprinting it,” says president Daniel Borochoff.

CharityWatch helped push the Salvation Army to start disclosing audits, Borochoff says. Its most recent report awards the group’s Eastern region an A (excellent), in part because it spends 82 percent of its budget on program services and just $14 per $100 to raise money. CharityWatch says a “highly efficient” charity should spend at least 75 percent of its budget on programs and pay $25 or less to raise each $100.

HSHV does not participate in the CharityWatch program. The Ann Arbor Ecology Center received three stars from Charity Watch (financial transparency issues were cited in the evalation) and does not participate in the CharityWatch program, either.

Jaci Nicols, HSHV’s Development Director remarked, “This high rating coupled with our successful animal welfare programs, highlights our focus on good stewardship of charitable contributions and maintaining the public trust. We are proud to be included in the top 12 percent of the best non-profits in the country.”

In December 2011, the Washtenaw County Board of Commissioners moved to end the county’s $500,000 contract for services with the HSHV. Commissioners wanted HSHV to agree to a 50 percent cut in its fee. In February of 2012, county officials reached an agreement under the auspices of which HSHV agreed to a new contract which included an 18 percent cut, to $415,000. Prior to the payment dispute, the HSHV had provided animal control services to Washtenaw County for almost two decades.