SmileHub Charity Rating Methodology

In order to provide the most accurate charity ratings, SmileHub uses the information from the latest IRS 990
XML
files on the IRS website to calculate 15 key metrics grouped into five overall sections: Financial Health,
Management Overhead, Fundraising Efficiency, Program Efficiency, and Transparency. We total the number of
points
scored across the categories to come up with SmileHub’s charity score.

All metrics for which we are not able to find data receive a score of 0.

Ratings for each metric reflect how close a charity is to SmileHub’s definition of a highly-effective
charity,
which is based on what we believe are reasonable standards. We compare charity data to that standard to give
a
numerical approximation of how reasonable and effective the charity is compared to others.

While we understand that charities in different categories have different financial requirements in order to
operate at an optimal level, we cannot in good conscience hold all charities, such as those which bring in
less
than $500,000 in revenue annually or have existed as a charity fewer than 10 years, to lower standards in
order
to increase the average rating of charities in our methodology. Charities that are not highly-rated by
SmileHub
may still be right for some people, depending on their desired cause or category of charity they wish to
donate
to, despite lower scores on our methodology.

All data that we use to rate charities comes from the IRS Form 990, IRS Business Master File, or the
charities’
websites.

Below, please find the complete grading rubric used to evaluate charities and produce SmileHub’s charity
ratings.

1. Revenue greater than $500,000 - 6 points
2. Revenue less than $500,000 - 0 points

1. If Most Recent Annual Revenue > 0 and Prior Year Revenue < 0 - 6 points
2. If Most Recent Annual Revenue > 0 and Prior Year Revenue = 0 - 6 points
3. Greater than 15% - 6 points
4. Between 5% and 15% - 4 points
5. Between -10% and 5% - 2 points
6. Less than -10% - 0 points
7. If Most Recent Annual Revenue <0, and Prior Year Revenue is blank - 0 points
8. If Most Recent Annual Revenue <0, and Prior Year Revenue < 0 - 0 points
9. If Most Recent Annual Revenue <0, and Prior Year Revenue = 0 - 0 points
10. If Most Recent Annual Revenue =0, and Prior Year Revenue is blank - 0 points
11. If Most Recent Annual Revenue =0, and Prior Year Revenue <0 - 0 points
12. If Most Recent Annual Revenue =0, and Prior Year Revenue =0 - 0 points
13. If Most Recent Annual Revenue >0, and Prior Year Revenue is blank - 0 points

1. Greater than 5% - 6 points
2. Between -5% and 5% - 4 points
3. Between -9.99% and -5% - 2 points
4. Less than or equal to -10% - 0 points
5. If Most Recent Annual Revenue =0 - 0 points
6. If Most Recent Annual Revenue <0 - 0 points

1. Between 0 and 0.30 – 6 points
2. Between 0.31 and 0.60 – 4 points
3. Between 0.61 and 0.80 – 2 points
4. Between 0.81 and 1.00 – 1 point
5. Greater than 1.00 – 0 points

1. If Net Assets EOY > 0, and Net Assets BOY < 0 - 6 points
2. If Net Assets EOY > 0, and Net Assets BOY = 0 - 6 points
3. More than 5% growth - 6 points
4. Between -5% and 5% growth - 4 points
5. Between -20% and -5% growth - 2 points
6. Less than or equal to -20% growth - 0 points
7. If Net Assets EOY <0, and Net Assets BOY blank - 0 points
8. If Net Assets EOY <0, and Net Assets BOY <0 - 0 points
9. If Net Assets EOY <0, and Net Assets BOY =0 - 0 points
10. If Net Assets EOY =0, and Net Assets BOY blank - 0 points
11. If Net Assets EOY =0, and Net Assets BOY <0 - 0 points
12. If Net Assets EOY =0, and Net Assets BOY =0 - 0 points
13. If Net Assets EOY >0, and Net Assets BOY blank - 0 points

1. If Net Assets EOY >0 and Total Expenses =0 - 6 points
2. 18 or more months - 6 points
3. 9 months to 18 months - 4 points
4. 3 months to 9 months - 2 points
5. 0 months to 3 months - 1 point
6. No liquidity - 0 points
7. If Net Assets EOY <=0 and Total Expenses =0 - 0 points

1. 40 or more years as a charity - 4 points
2. 20 to 40 years as a charity - 2 points
3. 10 to 20 years as a charity - 1 point
4. Fewer than 10 years as a charity - 0 points
5. If Ruling Year is recorded as 0 in the IRS Business Master File - 0 points
6. If Ruling Year is blank in Business Master File - 0 points

1. Does not compensate board members - 4 points
2. Compensates board members - 0 points
3. If the charity does not record any people as Individual Trustee or Director - 0 points

1. If charity reports Officer Comp =0 and Revenue <0 - 4 points
2. If charity reports Officer Comp =0 and Revenue =0 - 4 points
3. If charity reports Officer Comp =0 and Revenue >0 - 4 points
4. Compensation between 0% and 5% of revenue - 2 points
5. Compensation between 5% and 15% of revenue - 1 points
6. Compensation greater than 15% of revenue - 0 point
7. If charity reports Officer Comp >0 and Revenue <0 - 0 points
8. If charity reports Officer Comp >0 and Revenue =0 - 0 points
9. If charity reports 0 Officers and Revenue <0 - 0 points
10. If charity reports 0 Officers and Revenue =0 - 0 points
11. If charity reports 0 Officers and Revenue >0 - 0 points

1. Less than 10% - 12 points
2. Between 10% and 19.99% - 8 points
3. Between 20% and 34.99% - 4 points
4. 35% or higher - 0 points
5. If charity records Management Expenses =0, and Total Expenses =0 - 0 points
6. If charity records Management Expenses are blank, and Total Expenses =0 - 0 points
7. If charity records Management Expenses are blank, and Total Expenses >0 - 0 points

1. If contributions >0, and fundraising expenses =0 - 15 points
2. 30.0 or higher - 8 points
3. 7.5 to 30.0 - 4 points
4. Less than 7.5 - 0 Points
5. If contributions blank, and fundraising expenses blank - 0 points
6. If contributions are blank, and fundraising expenses =0 - 0 points
7. If contributions are blank, and fundraising expenses >0 - 0 points
8. If contributions =0, and fundraising expenses blank - 0 points
9. If contributions =0, and fundraising expenses =0 - 0 points
10. If contributions >0, and fundraising expenses blank - 0 points

1. Greater than or equal to 92% - 16 points
2. Between 85% and 92% - 12 points
3. Between 65% and 85% - 8 points
4. Less than 65% - 0 points
5. If charity reports Service Expenses =0, and Total Expenses =0 - 0 points
6. If charity reports Service Expenses are blank, and Total Expenses >=0 - 0 points
7. If charity reports Service Expenses are blank, and Total Expenses >0 - 0 points

1. If volunteers > 0 and employees = 0 - 4 points
2. Greater than or equal to 15 - 4 points
3. Between 1.0 to 15 - 2 points
4. Less than 1.0 - 0 points
5. If volunteers =0 and employees =0 - 0 points
6. If volunteers are blank and employees are blank - 0 points
7. If volunteers blank and employees >=0 - 0 points
8. If volunteers >=0 and employees blank - 0 points

1. Yes - 3 points
2. No - 0 points

1. Yes - 2 points
2. No - 0 points