Candid is an information service specializing in reporting on U.S.
nonprofit
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
companies.
[Walzer, Philip (2010). "Williamsburg's GuideStar pushes quiet revolution", ''The Virginian-Pilot'', 21 October 2010](_blank)
/ref> In 2016, its database provided information on 2.5 million organizations.[Wyland, Michael. "GuideStar Introduces Program Metrics Section for Nonprofit Profiles." Non Profit News For Nonprofit Organizations , Nonprofit Quarterly. N.p., May 11, 2016. Web. April 3, 2017.] It is the product of the February 2019 merger of GuideStar with Foundation Center.
It maintains comprehensive databases on grantmakers and their grants; issues a wide variety of print, electronic, and online information resources; conducts and publishes research on trends in foundation growth, giving, and practice; and offers education and training programs.
History
GuideStar
GuideStar was one of the first central sources of information on U.S. nonprofits and is the world's largest source of information about nonprofit organizations. GuideStar also serves to verify that a recipient organization is established and that donated funds go where the donor intended for individuals looking to give in the wake of disasters.
Guidestar was founded by Arthur "Buzz" Schmidt in Williamsburg, Virginia
Williamsburg is an Independent city (United States), independent city in the Commonwealth (U.S. state), Commonwealth of Virginia. As of the 2020 United States census, 2020 census, it had a population of 15,425. Located on the Virginia Peninsula ...
in 1994, under the name Philanthropic Research, Inc. The company, which provided nonprofit information, officially received tax-exempt
Tax exemption is the reduction or removal of a liability to make a compulsory payment that would otherwise be imposed by a ruling power upon persons, property, income, or transactions. Tax-exempt status may provide complete relief from taxes, redu ...
status as a 501(c)
A 501(c) organization is a nonprofit organization in the Law of the United States#Federal law, federal law of the United States according to Internal Revenue Code (26 U.S.C. § 501(c)) and is one of over 29 types of nonprofit organizations exe ...
(3) public charity in 1996. In July of that year, Philanthropic Research, Inc. published the GuideStar Directory of American Charities, a CD and printed index that presented full reports on 35,000 charities and partial reports on 7,000 other charities. That fall, Philanthropic Research, Inc. officially launched its GuideStar website, allowing it to update the data more frequently and provide more extensive information. The organizations began doing business under the name, "GuideStar", although its official name remained Philanthropic Research, Inc. until September 2008.
Beginning in 1997, GuideStar began posting information on all 501(c)(3) nonprofits in the IRS Business Master File. By December, the database held information on more than 600,000 nonprofits.
As of 1998, GuideStar provided digitized 990 data on its website's individual public charities pages. In January 1998, GuideStar received an award for Nonprofit Web Site Excellence from ''Philanthropy Journal
The ''Philanthropy Journal'' is an online magazine that delivers news, resources and opinion on matters relating to non-profit organizations. The journal offers a free website and email newsletters, nonprofit job postings, professional-development ...
'', with an honorable mention for "Service to the Sector" for its searchable database of (at that time) more than 620,000 U.S. nonprofit organizations. In October 1999, GuideStar began posting 501(c)(3) public charities' annual information returns, known as IRS Forms 990 and 990-EZ.
GuideStar began publishing an annual Nonprofit Compensation Report in 2001. The first edition was derived from compensation data reported to the IRS by nearly 75,000 charities. In response to 9/11, GuideStar expanded the database to include non-charitable organizations eligible to accept tax-deductible contributions, along with special 9/11 funds and programs. GuideStar also collaborated with the New York State Attorney General's Office, providing data for the WTC Relief Info site. In November 2001, ''Time
Time is the continued sequence of existence and events that occurs in an apparently irreversible succession from the past, through the present, into the future. It is a component quantity of various measurements used to sequence events, to ...
'' named Schmidt one of seven innovators in philanthropy for the new millennium. At the end of the year, the New Mexico Attorney General's Office
The Attorney General of New Mexico, an elected executive officer of the state, oversees the New Mexico Attorney General's Office and serves as head of the New Mexico Department of Justice.
The officeholder, who is required to be a licensed atto ...
launched an on-line Charities Research Service based on a customized version of the GuideStar database and search engine.
In February 2002, former PBS Chief Operating Officer Robert G. Ottenhoff took on Schmidt's role as president, and Schmidt became chairman of GuideStar's board. At the end of the year, GuideStar released the results of its first annual nonprofit economic survey.
In 2003, as part of the May launch of "Operation Phoney Philanthropy", the U.S. Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
encouraged donors to research charities' legitimacy on GuideStar before giving. That October, GuideStar received a U.S. Department of Commerce
The United States Department of Commerce is an United States federal executive departments, executive department of the Federal government of the United States, U.S. federal government concerned with creating the conditions for economic growth ...
Technology Opportunities Program grant to create a system through which state charity regulators could share information.
The California Attorney General
The attorney general of California is the state attorney general of the Government of California. The officer's duty is to ensure that "the laws of the state are uniformly and adequately enforced" (Constitution of California, Article V, Section ...
's Office modified its Charities Search to one based on a customized version of the GuideStar database and search engine in 2004.
In March 2005, the Interim Report of the Panel of the Nonprofit Sector delivered to the Senate Finance Committee
The United States Senate Committee on Finance (or, less formally, Senate Finance Committee) is a standing committee of the United States Senate. The Committee concerns itself with matters relating to taxation and other revenue measures generall ...
cited GuideStar's contributions to nonprofit transparency. In June, GuideStar launched a new Web site that included all tax-exempt organizations registered with the IRS, expanding the database by more than 340,000 nonprofits. GuideStar modified its search engine to make it easier for users to find data.
In 2007, GuideStar added online donation capabilities to its site, which were processed by long-time partner Network for Good
Network for Good is an American certified B Corporation software company that offers fundraising software and coaching for charities and non-profit organizations. The company was founded in 2001 by America Online (AOL), Cisco Systems and Yahoo! ...
. To further connect nonprofits with current and potential supporters, GuideStar launched a beta version of the GuideStar Exchange. In 2008, GuideStar released a new report on characteristics that drive foundation spending patterns.
GuideStar partnered with GreatNonprofits in 2009 to add stakeholder reviews to organizations' profiles for individuals to communicate their experiences with nonprofits. GuideStar also launched CEO Compensation Checkpoint to analyze nonprofit CEO compensation.
In April 2011, GuideStar acquired Philanthropedia
Philanthropedia, a division of GuideStar, was a crowdsourcing resource which provides information about high-impact nonprofit organizations. The site featured reviews from experts who are interviewed and surveyed. The site also featured rankin ...
and Social Actions. In May, GuideStar, in partnership with BBB Wise Giving Alliance and Independent Sector
Independent Sector is a coalition of nonprofits, foundations and corporate giving programs. Founded in 1980, it is the first organization to combine the grant seekers and grantees.
Located in Washington, D.C., Independent Sector largely works on f ...
, launched "Charting Impact" to provide a common platform for nonprofits to discuss their impact and results, and share that information publicly.
In 2013, GuideStar announced major changes to its GuideStar Exchange program, which allows nonprofits to supplement the public information that is available from the IRS.[Cunniffe, Eileen. "GuideStar to Collect Nonprofit Governance Information in League with BoardSource." Non Profit News For Nonprofit Organizations , Nonprofit Quarterly. N.p., April 16, 2015. Web. April 3, 2017.] GuideStar Nonprofit Profiles implemented three seals based on the information a nonprofit provides in its profile: Bronze, Silver, and Gold. The participation levels in the new GuideStar Exchange were based on the amount of information nonprofits share with the public via GuideStar. In September 2013, GuideStar and the Foundation Center announced a strategic partnership to deliver much-needed data and resources to the social sector.
On Monday, February 24, 2014, GuideStar hosted its first Impact Call, to expand the definition of nonprofit transparency and provide results in a timely and inclusive manner. In June, GuideStar released its new strategic plan, ''GuideStar 2020: Building the Scaffolding of Social Change.'' In October, in partnership with the D5 Coalition and Green 2.0, GuideStar released a tool for nonprofits to compile demographic data on their board members, employees and volunteers, including optional information input on gender, race and ethnicity, sexual orientation, and disability to share for public distribution.
In November 2014, GuideStar announced its goal to raise $10 million in transformational capital between 2014 and 2016 to help expand three essential functions: data innovation, collection, and distribution. The Bill and Melinda Gates Foundation committed to a $3 million grant structured as general operating support over three years to align with the strategic plan. Also in June, GuideStar partnered with Charity Navigator and BBB Wise Giving Alliance to launch the Overhead Myth Campaign.
In 2016, GuideStar upgraded GuideStar Nonprofit Profiles to allow users to more easily identify an organization's geographic reach, results, sources of funding, financial stability, and leadership.[O'Neil, Megan. "GuideStar Redesigns Charity Profiles to Emphasize Results." The Chronicle of Philanthropy. N.p., January 20, 2016. Web. April 5, 2017. https://www.philanthropy.com/article/GuideStar-Redesigns-Charity/234989] The redesign shifted emphasis from charity overhead costs to programs and results, a reflection of a broader debate in the nonprofit world about measuring and communicating impact. In November, GuideStar's position as a leading source of nonprofit information was reinforced when the ''Washington Post'' reported that the Trump Foundation
The Donald J. Trump Foundation was a New York-based tax-exempt private foundation formed in 1988 by Donald Trump and dissolved by court order in 2019 after various legal violations came to light.
The foundation was created to receive royalties ...
had admitted to self-dealing after a 2015 IRS tax filing was uploaded to GuideStar's website by the Trump Foundation's law firm. In 2016, a new seal that allowed nonprofits to share progress and results for their mission, GuideStar Platinum, was introduced.
In June 2017, GuideStar entered into a partnership with the Southern Poverty Law Center
The Southern Poverty Law Center (SPLC) is an American 501(c)(3) nonprofit legal advocacy organization specializing in civil rights and public interest litigation. Based in Montgomery, Alabama, it is known for its legal cases against white su ...
to flag SPLC-identified "hate groups" on their web site. Critics of the SPLC objected to this measure as a highly political move. William Boykin, chair of the Family Research Council
The Family Research Council (FRC) is an American evangelical activist group and think-tank with an affiliated lobbying organization. FRC promotes what it considers to be family values. It opposes and lobbies against: access to pornography, emb ...
, one such group which was flagged, said that "at this point, they are becoming an arm of the ultra-left." GuideStar then announced it was removing the labels for the time being.
2017 Guidestar defamation lawsuits
A charity watch investigator called Blue Avocado compared Charity Navigator
Charity Navigator is a charity assessment organization that evaluates hundreds of thousands of charitable organizations based in the United States, operating as a free 501(c)(3) organization. It provides insights into a nonprofit’s financial s ...
, Charity Watch
CharityWatch, formerly known as the American Institute of Philanthropy (AIP), is a 501(c)(3) nonprofit organization in Chicago, created in the United States by Daniel Borochoff in 1992, to provide information about charities' financial efficiency ...
, Better Business Bureau
Better Business Bureau (BBB) is a private, 501(c)(6) nonprofit organization founded in 1912. BBB's self-described mission is to focus on advancing marketplace trust, consisting of 97 independently incorporated local BBB organizations in the Unit ...
, Combined Federal Campaign
The Combined Federal Campaign (CFC) is the workplace giving program of the federal government of the United States. The program is authorized by executive order 12353 (as amended) of March 23, 1982, and is overseen by the United States Office of ...
and Great Nonprofits GreatNonprofits is a 501(c)(3) registered non-profit organization based in the United States with a website where donors, volunteers, and clients to review and share their personal experiences with charitable organizations, essentially providing c ...
. Blue Avocado praised GuideStar for offering "information rather than making judgments". After GuideStar placed a notice on the pages of some charities that were listed on the Southern Poverty Law Center (SPLC) "hate group list", one of the groups sued GuideStar for defamation. A Federal District Court Judge found in favor of GuideStar and dismissed the lawsuit on January 23, 2018. Liberty Counsel's appeal was denied on September 11, 2018. The request for an ''en banc'' rehearing was denied on November 20, 2018. The District Court's judgment took effect on November 27, 2018.
Foundation Center
Foundation Center was an American 501(c)(3)
A 501(c)(3) organization is a United States corporation, trust, unincorporated association or other type of organization exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is one of the 29 types of 50 ...
nonprofit organization
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
headquartered in New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
, New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
. The center's stated mission was "to strengthen the social sector by advancing knowledge about philanthropy
Philanthropy is a form of altruism that consists of "private initiatives, for the Public good (economics), public good, focusing on quality of life". Philanthropy contrasts with business initiatives, which are private initiatives for private goo ...
in the U.S. and around the world." The president of the organization was Bradford K. Smith.
In the mid-1950s, John Gardner, F. Emerson Andrews, and other foundation leaders created a "strategic gathering place for knowledge about foundations," positing that transparency would be the best defense against congressional inquiries about private foundation activities and spending. Board chair of Carnegie Corporation of New York
The Carnegie Corporation of New York is a philanthropic fund established by Andrew Carnegie in 1911 to support education programs across the United States, and later the world. Carnegie Corporation has endowed or otherwise helped to establis ...
at that time, Russell Leffingwell
Russell Cornell Leffingwell (September 10, 1878 – October 2, 1960) was an American banker who led the Council on Foreign Relations from 1944 until 1953. From 1944 to 1946, he served as president of the Council, and from 1946 to 1953, he served a ...
, told a McCarthy-era Congressional hearing that "We think that the foundation should have glass pockets." This statement helped to define the purpose of Foundation Center – known then as the Foundation Library Center – as it opened in New York City on November 26, 1956. Its founding president was F. Emerson Andrews of the Russell Sage Foundation
The Russell Sage Foundation is an American non-profit organisation established by Margaret Olivia Sage in 1907 for “the improvement of social and living conditions in the United States.” It was named after her recently deceased husband, rail ...
and author of ''Foundation Watcher.'' To achieve its goal of providing broad, open access to foundation information, the center began in 1959 to establish depositories of information in other libraries – now known as the Funding Information Network – nationwide. In 1960 it published the first ''Foundation Directory,'' which is still being published annually. In 1968, the organization's name was officially changed to The Foundation Center, signifying expansion of its services and activities beyond that of a library. In 2014, "The" was dropped from the name.
The organization collects detailed data on U.S. foundations
Until 1969, the term ''private foundation'' was not defined in the United States Internal Revenue Code. Since then, every U.S. charity that qualifies under Section 501(c)(3) of the Internal Revenue Service Code as tax-exempt is a "private foundatio ...
through a variety of means, including grants lists supplied by foundations electronically and in other formats, foundations' publicly available IRS Forms 990-PF, annual reports, web sites, and mailed questionnaires. Today, the organization engages in an increasing amount of global data collection, too. The Center continues to be publisher and distributor of its own directories, research reports, and nonprofit management and fundraising guides, and makes its databases available via ''Foundation Directory Online, Foundation Maps'', and other online resources.
The Funding Information Network
The Funding Information Network (FIN, for short) began just a few years after Foundation Center was founded in 1956, with the establishment of eight regional depositories. According to internal historical documentation, the very first depository was established in 1959 in Chicago
(''City in a Garden''); I Will
, image_map =
, map_caption = Interactive Map of Chicago
, coordinates =
, coordinates_footnotes =
, subdivision_type = Country
, subdivision_name ...
, followed in 1962 by locations in Texas
Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...
and Kansas
Kansas () is a state in the Midwestern United States. Its capital is Topeka, and its largest city is Wichita. Kansas is a landlocked state bordered by Nebraska to the north; Missouri to the east; Oklahoma to the south; and Colorado to the ...
. By 1978, the Network expanded to 75 “collections” with at least one collection in all fifty states. Between 1978 and 2013, these “Cooperating Collection” sites evolved from locations which housed collections of Foundation Center directories and databases to locations that engaged their social sector community, providing dynamic support and training on Foundation Center resources. In 2013, Cooperating Collections rebranded as the Funding Information Network, a name more reflective of the responsive network of support and services the program provides.
Network partners range from public libraries, to community foundations, to NGOs, and other types of community agencies. Over 20% of FIN partners have been with Foundation Center for 30 years or longer. By the same token, an equal percentage of partners are new or have been with the program for less than 5 years.
Funding Information Network partners provide access to Foundation Center resources, including ''Foundation Directory Online'' and other databases, as well as training curricula from Foundation Center's suite of classes on fundraising, organizational sustainability, and leadership and management. Network partners pay an annual access fee for these resources, which they agree to provide to members of the public free of charge.
Merger
In 2012, Foundation Center and GuideStar first officially explored the idea of a merger. On February 5, 2019, Foundation Center merged with GuideStar to form Candid. Both organizations are committed to increasing transparency and providing access to data. The merger brings together large repositories of data on both foundations and nonprofits, with a goal of providing insights and analysis as well. Former Executive Vice President of Candid and former president of GuideStar Jacob Harold said “Our combined data and networks will allow us to understand the current state of the field in new ways.” Candid will work to merge datasets to offer insights and more intuitive search results, deliver trainings to help people in the social sector develop skills, create new technology and data skills, help nonprofits improve fundraising skills, drive a common nonprofit profile, and more. Some in the sector see possible downfalls, including data access becoming too expensive and Candid remaining neutral.
Part of the costs of the merger were supported financially by donors, including $27 million from the Bill and Melinda Gates, Charles Stewart Mott, and the William and Flora Hewlett Foundation. Much of the money was set to go towards merging business systems, as well as going into a reserve fund and venture fund.
The new organization is committed to providing access to data and increasing transparency in the social sector.
Education and training
Candid provides both free and paid training services to help organizations and individuals seeking funding. Educational programs include the funding research process, proposal writing, grantmakers and their giving, nonprofit management and sustainability, and related topics. Many foundations, including the largest in the U.S., the Bill & Melinda Gates Foundation
The Bill & Melinda Gates Foundation (BMGF), a merging of the William H. Gates Foundation and the Gates Learning Foundation, is an American private foundation founded by Bill Gates and Melinda French Gates. Based in Seattle, Washington, it was l ...
, refer their grant applicants and grantees to them for further assistance in finding funding.
Research
Candid analyzes and interprets the data it collects on foundations and their giving to inform the philanthropic sector and the broader public about patterns and trends in foundation growth, giving, and practice. Original research is conducted on international, national, regional, and special topic trends, as well as trends within specific types of grantmaking organizations – including corporate, family, and community foundations. Various media sources and news publications regularly cite their statistics, including ''The Chronicle of Philanthropy
''The Chronicle of Philanthropy'' is a magazine that covers the nonprofit world of philanthropy. Based in Washington, DC, it is aimed at charity leaders, foundation executives, fund raisers, and other people involved in philanthropy. ''The Chroni ...
'' and ''The New York Times
''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
.''[Foundation Giving in ’08 Defied Huge Asset Decline]
" by Stephanie Strom, ''New York Times,'' March 30, 2009.
Specific recent research projects look at capacity building, human rights funding, funding for U.S. democracy, and funding for disaster relief and recovery.
References
External links
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Non-profit organizations based in Washington, D.C.
Charity review websites
Auditors
Mass media in Washington, D.C.
American review websites
Online companies of the United States
1994 establishments in Virginia
Organizations established in 1994