Why ECFA Does Not Rate Ministries & Christian Charities

 

Prospective donors occasionally ask ECFA which of its member organizations is the "best" one to support. Our response is simple. ECFA does not compare, rate, or rank member organizations. 

The ECFA seal is the gold standard for prospective donors seeking Christ-centered organizations that operate with integrity. Data in our annual State of Giving reports show that ECFA-member giving rates regularly outpace those of charities in the larger U.S. nonprofit sector.

Unlike some charity monitoring organizations that rate or rank using ratios or other quantitative measures, we enhance trust in churches and Christian nonprofits by evaluating each of our members independently against one benchmark—ECFA's Seven Standards of Responsible Stewardship™. If a church or ministry voluntarily pursues and successfully attains ECFA accreditation, then that organization has effectively demonstrated its commitment to upholding ministry integrity by complying with each of ECFA's standards. Moreover, it renews that commitment annually through a thorough review process to maintain its accreditation. (Learn more about accreditation and ECFA's member accountability process.)

Our approach is straightforward and clear. Either an organization earns the right to display the ECFA seal, or it does not.

 

Why the ECFA Approach is Different

In his classic book on nonprofit management, Peter F. Drucker includes a cleverly titled chapter: "What is the Bottom Line When There is No 'Bottom Line'?" This question points to the difficulty of rating charitable organizations. In the commercial arena, mathematical formulas and calculations can be useful analytical tools when the primary goal is financial profit or a positive return on investment. But how can ratios accurately reflect changed lives, transformed minds, and saved souls? Can one quantitatively measure qualitative matters like ministry leadership, vision, and heart?  
 
Of course, measurements are still valuable in the nonprofit space. For example, evaluating data can be very meaningful when assessing a church or ministry's year-over-year performance or success in reaching its targeted goals. However, ratios and other data are more difficult to fairly apply when comparing one nonprofit to another.

ECFA includes a full spectrum of Christian nonprofits. These churches and ministries differ significantly in the nature and scope of their work according to their specific callings. Even those with similar ministry objectives often follow different philosophies to realize them.

Specifically in the financial space, several variables can shade an attempt to rate or rank an organization's "performance." For example:

  • Is a ministry intentionally small and local, or is it a multifaceted, international organization?
  • Does the nonprofit outsource, or does it conduct its own program, administrative, and fundraising operations?
  • Is an organization mature financially, or is it in its formative years investing in efforts to build credibility and a base of faithful supporters?
  • Does the organization rely primarily on cash donations, or are gifts-in-kind a significant source of support? 
  • Can the ministry operate freely in its cultural context, or is it working in an environment where promoting specific program successes may be prohibitive or dangerous?

Attempting to establish comparative criteria among such a diverse group will likely lead to subjective or arbitrary value judgments, and resulting ratings can potentially cultivate division by diminishing each ministry's uniqueness. Moreover, they could contribute to unhealthy competition within the Body of Christ.

 

Why the ECFA Approach is Beneficial 

ECFA was founded to catalyze an overarching Christian ministry environment that fosters cooperation, encourages mutual respect, and maintains integrity. ECFA is unlike charity "watchdogs" in that we proactively partner with accredited member organizations to help them build and maintain the financial accountability, responsible governance, and leadership integrity that enhance donor trust. 

Notably, ECFA's standards and accountability processes are not legalistic demands for perfection. Instead, they are guardrails meant to ensure churches and ministries are taking practical steps to uphold biblical principles of integrity. We aim to bolster an environment in which prospective donors can feel confident in any ECFA-accredited member. In fact, we encourage givers to use our "Find a Member" tool to easily access transparent financial information and program overviews for each member. 

In contrast to a rating system, ECFA's approach provides important benefits as it:  

  • Identifies integrity standards and an accountability process anchored in the Bible. 
  • Accredits only Christ-centered churches and ministries based on verified adherence to those integrity standards.
  • Relies on best accounting and integrity principles, guided by faith for above-reproach operations.
  • Pursues tailored education and collaborative problem-solving in Christ's spirit of grace, empathy, and redemption.
  • Authorizes a "seal of approval" to identify Christian ministries committed to integrity.
  • Provides a platform to connect prospective donors with giving opportunities aligned with their values and transparency in finances.
  • Prioritizes ongoing support for accredited organizations through educational resources, webinars, survey findings, public policy advocacy, and more. 

 

When givers try to determine the "best" ministry to support, they should look beyond mere ratings. Trustworthy and effective organizations will openly define their mission and show evidence of success through accountable reports and financial transparency. ECFA's GiverConnect™ platform is one way donors can quickly and easily find giving opportunities with ECFA-accredited ministries they can trust.

 

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.