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Evaluate Charitable Organizations There are more than 100,000 charitable organizations in the United States that solicit contributions from the public. Most of these groups are responsible and work to make good use of the funds they receive. Unfortunately, some are not. Before you contribute to any charity, you should take the time to learn how your contribution will be used. Several organizations evaluate charitable organizations according to how they use the funds they receive. One of these is the American Institute of Philanthropy (AIP), which publishes a Charity Rating Guide and Watchdog Report three times each year. This periodical lists major charitable organizations and rates them according to standards that are easily understood. These standards include each of the criteria listed in the bullet points below. Directions: Evaluate cach criterion. Why do you believe each was set? Do you believe that the criterion is reasonable? Percent of funds spent on charitable purpose. AIP regards 60 percent or more as reasonable. . Cost to raise $100 in contributions. AIP regards a cost of $35 to raise $100 in contributions as reasonable. . Amount of available assets measures the time the charity would be able to continue to function if it received no additional contributions. AIP regards amounts over three years as excessive. Compensation for three top-paid executives reported to the IRS on Form 990. AIP reports this amount but has not set a standard