Giving Hope to the Future through Education

    Avivara 4 Star Rating


In spring of 2016, Charity Navigator, a major non-profit watchdog organization, released its new criteria for rating non-profit organizations on their financial health and transparency & accountability. While Avivara does not qualify to be rated by Charity Navigator on their website (our budget is too small), we do use their criteria to do our own internal evaluation of our financial health and commitment to accountability and transparency.


Financial Health Rating:


Below are the results of our internal evaluation using the Financial Health Performance Metrics established by Charity Navigator. (Note: Charity Navigator now uses the average of 3 years of data derived from an organization’s most recent 990 reports to the IRS to determine most of their ratings.):


 Metric 1

 Program Expense Percentage


 Metric 2

 Administrative Expense Percentage


 Metric 3

 Fundraising Expense Percentage


 Metric 4

 Fundraising Efficiency (cost to raise $1.00 in revenue)


 Metric 5

 Program Expenses Growth (average annual growth over the last 5 years)


 Metric 6

 Working Capital Reserve (days of operation without revenues)

252 days

 Metric 7

 Liabilities to Assets Ratio







With these scores, Avivara would have received a Financial Health Rating of 97.5 out of a possible 100, thus earning it a four-star rating. The only area where Avivara did not receive the highest score possible was in its Working Capital Reserve, which Charity Navigator feels should be able to last a full calendar year without revenues. However, by board policy, Avivara maintains an operating reserve in investment accounts to sufficiently cover budgeted expenses for a minimum of six months. (The board would rather see donations being put to good use rather than just sitting in an investment portfolio.)


Transparency and Accountability Rating:


In the area of transparency and accountability, Charity Navigator looks at information provided on an organization's annual 990 report to the IRS, and what information is publicly posted on the organization's website. There are 19 components to this section which include board composition and compensation, CEO evaluation and compensation, the promulgation of various policies (i.e., whistleblower, conflict of interest, records retention, donor privacy, etc.), and the review and auditing of financial records.


In this area, Avivara would have received an Accountability & Transparency Rating of 92.5 out of 100, thus earning it a four star rating in this category as well. The only deduction keeping Avivara from having a perfect score in this area was the fact that we do not have our Avivara U.S. financial records audited by an independent accounting firm. However, our financial records in Guatemala are audited by a licensed independent accounting firm and the Avivara U.S. board does review all financial statements on a quarterly basis.


Again, we wish to emphasize that these rating were not done by Charity Navigator, but were done internally by our staff using the Charity Navigator Criteria and Rating Tables which can be found on the Charity Navigator website.


There are two reasons for doing this internal review:

  1. It is useful information for our Avivara Board to use in evaluating our organization’s overall financial health and general management processes.
  2. We also feel it important that our donors know that their donations are being utilized effectively and that Avivara is a well-managed organization worthy of their trust.

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