What data do you use to calculate ratings?

We use publicly available data from the New Zealand Charities Register, including annual returns, financial statements, and officer information. All charities registered in NZ are required to submit this data annually.

How often are ratings updated?

Ratings are recalculated whenever new annual return data becomes available from the Charities Register. Most charities file annually, so ratings typically update once per year for each charity.

Why does my charity have a lower score than expected?

Scores reflect the data available in official filings. Common reasons for lower scores include: high reserve levels relative to spending, limited financial disclosure, incomplete officer information, or data entry issues in annual returns. Check the specific category scores to identify improvement areas.

Can charities dispute their rating?

Yes. If you believe data is incorrect or there are extenuating circumstances, please contact us. We cannot change scores based on opinions, but we will correct any factual errors in our data.

Rating Methodology v3.0

How we calculate charity ratings

Rating Overview

CharityData NZ rates charities on a scale of 0-100, with letter grades from A+ to F. Our rating combines three equally-weighted components: Financial Health, Governance, and Transparency.

33%

Financial

33%

Governance

33%

Transparency

Grade Scale

A+

95-100 points

90-94 points

A-

85-89 points

B+

80-84 points

75-79 points

B-

70-74 points

C+

65-69 points

60-64 points

C-

55-59 points

D+

50-54 points

40-49 points

0-39 points

Financial Health (33%)

Evaluates how effectively a charity manages its finances and deploys resources toward its mission.

Reserve Levels

Charities should maintain reasonable reserves (3-12 months of expenses is typical). Excessive reserve accumulation may indicate funds aren't being deployed effectively. Too-low reserves may indicate financial instability.

Revenue Stability

We assess revenue trends over multiple years. Consistent or growing revenue suggests financial sustainability. Volatile or declining revenue may indicate risk.

Operating Efficiency

Based on available expense data. Note: NZ charity reporting doesn't require detailed program/admin breakdowns, so this metric uses available categories (employee costs, other expenses).

Governance (33%)

Assesses board composition, oversight quality, and governance practices.

Board Size & Composition

Effective boards typically have 5-12 members. Too few may indicate insufficient oversight; too many may indicate inefficiency. We also consider tenure diversity.

Officer Disclosure

Charities should disclose complete officer/trustee information including names and roles. Missing or incomplete officer data reduces governance scores.

Overboarding Check

We identify trustees serving on excessive numbers of boards, which may indicate limited ability to provide adequate oversight to each organisation.

Transparency (33%)

Measures how openly a charity shares information with the public.

Filing Timeliness

Charities that file annual returns on time demonstrate better accountability. Late or missing filings reduce transparency scores.

Financial Disclosure Quality

We assess the completeness of financial information provided in annual returns. More detailed disclosures receive higher scores.

Contact Information

Charities providing complete contact details (website, email, phone, address) score higher than those with limited public contact information.

Red Flag Detection

In addition to scores, we identify specific concerns that may warrant further investigation:

Excessive Reserves - Reserves exceeding 3+ years of expenses
High Admin Costs - Administrative expenses significantly above sector average
Governance Concerns - Very small boards, overboarded trustees, or missing officer data
Late/Missing Filings - Annual returns filed late or not at all
Revenue Decline - Significant multi-year revenue decline

Note: Red flags indicate areas for further research, not wrongdoing. There may be valid explanations.

Methodology Limitations

Ratings are based solely on publicly filed data - they cannot assess program quality or impact
NZ charity reporting doesn't require detailed program vs. admin expense breakdowns
Small charities may score lower due to less comprehensive reporting requirements
Ratings don't capture qualitative factors like mission effectiveness or community impact
Data may lag - annual returns reflect the previous financial year