The American Institute of Philanthropy (AIP) is a 501(c)(3) nonprofit organization that was created by Daniel Borochoff in 1992^[1] to address the continuing need for thoughtful information regarding the financial efficiency, accountability, governance and fundraising practices of charities. Charity financial reporting can be inconsistent, unclear, and occasionally unethical or 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.^[2] 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.^[3]

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.^[4] The ratings include 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.^[5]

AIP also 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. AIP President Daniel Borochoff has testified before Congress regarding veterans charities^[6], the aftermath of Hurricanes Katrina and Rita^[7], and the philanthropic response to the 9/11 attacks.^[8]

Daniel Borochoff and AIP were recently featured in an ABC News report in regard to charities who launch appeals on behalf of wounded and paralyzed veterans http://blogs.abcnews.com/theblotter/2007/11/failing-to-serv.html. Some of these organizations, such as Help Hospitalized Veterans run by nonprofit entrepreneur Roger Chapin, actually give a small percentage of their proceeds to their stated causes^[9].

References

External links

• American Institute of Philanthropy official web site

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