Worst Charities to Donate To (By the Data)
Published April 1, 2026 · IRS 990 filing data
Not all charities are equally disciplined with their finances. Some run healthy reserves and steady revenue; others operate with thin cushions, volatile income, or outsized executive pay. Using IRS Form 990 data, we identify the nonprofits with the lowest Efficiency Scores — a financial-structure signal, not a measure of mission or impact.
Bottom 25 by Efficiency Score
Red Flags to Watch For
- Thin operating reserves: Fewer than three months of expenses covered by assets leaves an organization fragile to funding shocks.
- Officer pay high relative to size: Compensation for current officers should be reasonable as a share of the organization’s revenue.
- Declining revenue with growing expenses: An organization that is shrinking but spending more is burning through reserves.
- Volatile, windfall-driven revenue: Erratic year-to-year income makes sustained program funding harder to plan.
Context Matters
Low Efficiency Scores do not always mean fraud or waste. Some legitimate reasons for a lower score include: new organizations investing in infrastructure, capital-intensive fields (hospitals, universities) with large balance sheets, and those going through leadership transitions. The score also excludes program-vs-overhead spending, which is not available in our data source. Always check the best-rated charities to see what a strong financial structure looks like.
For CEO compensation data across nonprofits, see nonprofit CEO salary data.
Frequently Asked Questions
What makes a charity score poorly on efficiency?
A low Efficiency Score usually reflects thin or volatile finances — too few months of operating reserves, persistent deficits, erratic year-to-year revenue, or executive compensation that is high relative to the organization’s size. Our Efficiency Score weights financial health / operating reserves (40%), multi-year revenue consistency (35%), and officer compensation relative to revenue (25%).
Does this ranking measure program spending?
No. Total program service expenses (Form 990 Part IX, line 25, column B) are not carried in the ProPublica Nonprofit Explorer feed this site ingests, so we do not compute or estimate a program-vs-overhead ratio. You can read that breakdown directly from each organization’s e-filed Form 990 or on Candid (GuideStar).
Where does charity data come from?
All data comes from IRS Form 990 filings, which nonprofits with revenue over $200,000 must file annually. These are public records available through ProPublica Nonprofit Explorer and the IRS itself.
About This Data
All data from IRS Form 990 filings via ProPublica Nonprofit Explorer API. See our methodology.