What is the Encompass Rating System?
The Encompass Rating System evaluates nonprofit performance across four areas, called beacons: Accountability & Finance, Impact & Measurement, Leadership & Planning, and Culture & Compensation. Metrics within each beacon are combined to calculate an overall score, which is displayed as a star rating from 0 to 4.
How does my nonprofit become Encompass Rated?
To receive an Encompass Rating, a nonprofit must be a U.S.-based 501(c)(3) public charity. Private foundations, consolidated subsidiaries, and organizations with revoked or inactive IRS status are not eligible.
Eligible nonprofits must also meet the following criteria:
Charity Navigator must directly receive at least three electronically filed IRS Form 990s within the past six years (these do not need to be consecutive).
At least two of the four most recent filings must be the standard Form 990, and the most recent filing cannot be a Form 990-PF.
Report total functional expenses greater than zero, with program expenses not exceeding total expenses.
Does not currently have a Charity Navigator “Giving Not Recommended” alert.
A nonprofit may be listed but not rated if it does not yet meet Form 990 filing requirements, is newly registered, files only Form 990-EZ or 990-N, or is otherwise ineligible for an Encompass Rating.
What data is used to calculate ratings?
We rely on a combination of public tax data from the IRS and nonprofit-submitted data through our Nonprofit Portal.
How are metrics scored?
Individual metrics are scored on a scale of 0 to 1. These scores are combined within each beacon and then aggregated to produce an overall score and star rating.
On rating page displays, these scores are presented as percentages.
If my nonprofit is not eligible for an Encompass Rating, should we still submit data?
Yes! Even without an Encompass Rating, submitted data can be used once your organization is eligible. In the meantime, donors can learn more about your organization through the individual beacons.
How do I know which Form 990 years are used in my rating?
We display the fiscal year-end for the most recent Form 990 on each nonprofit’s rating page. Most financial metrics use three-year averages based on the most recent Form 990 and the two prior filings, when available.
What is the “Complete Profile” banner?
The “Complete Profile” banner indicates that a nonprofit has submitted all required, up-to-date information for its Encompass Rating through the Nonprofit Portal. Complete profiles help donors make informed decisions and are prioritized in search results.
How does an Encompass Rating benefit my nonprofit?
An Encompass Rating helps nonprofits build trust with donors, highlight organizational strengths, and demonstrate transparency and effectiveness. A three- or four-star rating can increase donor confidence and support fundraising efforts.
Understanding the Encompass Rating
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