Rating Scale

The following rating gradations provide donors with a simple system to measure an organization’s social value, financial health, and organizational integrity.

The rating definitions are below, with an "n" modifier signifying the size of the organization, for example, AAA.sma for a small organization with an annual budget less than USD$100,000;  AAA.med for a medium organization with an annual budget of USD$100,000 up to USD$500,000; and AAA.lar for a large organization with an annual budget greater than or equal to USD$500,000.

Not Comparable Across Size Categories

ForeignAid Ratings are not designed for fine comparisons of organizations across different size categories; rather, they address relative social value within a given size class. Comparing a large organization with a small one would skew the weighted average of social value, financial health, and organizational integrity in favor of the larger organization even in the case that the smaller organization is delivering much higher social value per unit of funding than its larger counterpart. Thus, ForeignAid Ratings should be used to compare small organizations with other small organizations, and so on.  Crude comparisons across size categories can, of course, still be made.

AAA.n	Exceptional social value per unit of funding. While the financial health and organizational integrity of these entities is likely to change, such changes as can be visualized are most unlikely to impair their fundamentally strong social value position.
AA.n	Excellent social value per unit of funding. Together with the AAA group, they constitute what are generally known as high-grade entities. They are rated lower than AAA-rated entities because long-term risks—financial and organizational—appear somewhat larger.
A.n	Very good social value per unit of funding. However financial and organizational elements may be present which suggest a susceptibility to impairment sometime in the future.
BBB.n	Good social value per unit of funding. However, certain protective financial and organizational elements may be lacking or may be unreliable over any great period of time.
BB.n	Adequate social value per unit of funding. Often the ability of these entities to meet their social objectives may be moderate and not well safeguarded in the future.
B.n	Questionable social value per unit of funding. Assurance of organizational or financial sustainability over any long period of time is small.
CCC.n	Poor social value per unit of funding. They may be in financial distress, or there may be present elements of danger with respect to it organizational integrity.
CC.n	Very poor social value per unit of funding. Such entities are often in financial or organizational distress or have other marked shortcomings.
C.n	Extremely poor social value per unit of funding. Such entities are often in financial or organizational distress or have other marked shortcomings.
D.n	Lowest-rated class of entity. Such organizations are usually delivering no social value and are experiencing financial and organizational turmoil, and potential recovery values are low.

Note: ForeignAid Ratings applies modifiers + and - each generic rating category from AAA to C. The modifier + indicates that the issuer is in the higher end of its letter rating category; no modifier indicates a mid-range ranking; the modifier - indicates that the issuer is in the lower end of the letter ranking category.

Note: Organizations that receive a rating grade of BB or above are considered “ForeignAid Certified.”

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