Least Efficient Charities in America

Low Efficiency Scores typically result from a combination of low program spending (under 65% of expenses going to mission), high executive compensation relative to revenue, declining revenue trends, or excessive reserves. Some organizations face legitimate challenges — new nonprofits investing in infrastructure or those in capital-intensive fields may score lower temporarily.

Not necessarily. A low Efficiency Score indicates poor financial stewardship, not fraud. Some organizations are simply less efficient due to high overhead or expensive fundraising methods. However, persistently low scores combined with high executive pay should raise donor concerns.

Review the specific factors behind the score. If program spending is below 65%, consider whether the organization is in a growth phase or truly inefficient. Compare it with similar organizations in the same category using our category rankings.