Charity watchdog gives top rating to United Way

Syracuse.com reported that an independent charity watchdog group has upgraded its rating of the United Way of Central New York from “poor” to “exceptional” to reflect cost-cutting and other changes the local fundraising group has made to become more efficient.

Charity Navigator, an independent nonprofit that evaluates more than 5,000 U.S. charities based on their annual IRS form 990 tax returns and other factors, has revised its rating of the United Way to four stars, its best rating. The United Way previously had a one-star rating. Its ratings are available online (http://www.charitynavigator.org/).

Sandra Miniutti, a vice president of Charity Navigator, said the United Way’s rating improved dramatically because the organization cut its overhead and fundraising costs. The United Way spent 8 cents to raise $1 in 2010. That’s down from 13 cents in 2009. “Donors want to make sure groups like the United Way are even more efficient than the typical charity because they are passing the money along and taking a cut on the way,” Miniutti said. “We want to make sure that cut is as small as possible.”

The United Way collected more than $8 million in 2009 to fund 39 agencies that feed the hungry, shelter the homeless and provide other human services in the community. It plans to announce the results of its 2010 campaign Wednesday. The United Way fundraiser is Onondaga County’s largest annual campaign.

The United Way reduced its administrative expenses by 14 percent and reduced its staff by 12 percent in 2010 after its annual fundraising drive fell short of its goal in 2009. Read more here.