American Institute of Philanthropy

Mission

Daniel Borochoff created AIP in 1992 to address the continuing need for thoughtful information regarding the financial efficiency, accountability, governance and fundraising practices of charities. Charity financial reporting is often inconsistent, unclear, and sometimes unethical and even fraudulent. AIP carefully analyzes charity financial documents to identify the charities that are financially efficient--and the ones that are not--and publishes its findings. AIP encourages donors to give to charities that will allocate most of their contributions to program services that benefit the people and causes donors wish to support. AIP also promotes charity accountability and transparency through its research on the rapidly changing nonprofit field.

Programs

AIP publishes the Charity Rating Guide & Watchdog Report that contains ratings of the financial efficiency of over 500 national charities. The ratings are grades ranging from A+ to F and are based on an in-depth analysis of charity financial documents. Included with the ratings are the percentage of a charity's budget that is spent on program services, how much it costs a charity to raise $100, an accountability measure, and the salaries of the charity's three highest paid employees. The Guide also features articles about current problems in the nonprofit field and tips to help donors make wise giving decisions and avoid charity scams. AIP investigates current ethical issues surrounding charity spending, including salaries and payouts, financial reporting, telemarketing and direct mail solicitation campaigns and governance. AIP shares the results of its research with the media and government agencies and works closely with these parties to educate the public about informed giving.