Your Guide to Intelligent Giving
Where the Heart
Meets the Mind
Critical Friend to Charities
The Data Proves Impact 4.5 million
distinct visitors (6.4 million hits) in 2012
92% say evaluations affected their decision to support individual public charities
CN ratings influence decisions on billions in donations annually
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
1000000
2000000
3000000
4000000
5000000
6000000
7000000
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OUR DEFINITIONS OF ACCOUNTABILITY & TRANSPARENCY (per Prof. Brackman Reiser)
ACCOUNTABILITY - is an obligation or willingness by an organization to explain its actions to its stakeholders.1)FINANCIAL - to safeguard and manage the
organizations financial resources.2)ORGANIZATIONAL – to consistently follow rules of
governance and operational process.3)MISSION – to set goals and then measure and
manage performance to assure the organization is achieving meaningful results.
TRANSPARENCY - an obligation or willingness by a organization to publish and make available critical accountability data about the organization.
QUALITIES OF AN ACCOUNTABLE & HIGH IMPACT ORG.
Financial Health
• Strategy/Theory of Change•Passion•Experience•Persistence• Creativity• Ability to get other s to follow
Capable Leadership
• Data management discipline
• Constituent feedback• Outcome focused intent• Relate efforts to outcomes• Learn and adjust approach• Continuous improvement
High Performance
Impact
• Positive, sustainable change
• Independently evaluatedHIGHER RISK
INVESTMENTLOWER RISK INVESTMENT
* Inspired by the Alliance for Effective Social Investing
Mission Accountability: Results (RR)
Organizational Accountability: Governance (A&T)
Financial Accountability: Financial Health
Financial Health
Accountability
(Governance) &
Transparency
Results Reporting
A scalable, in depth, multi-dimensional charity rating system.
CN 2.02011 -
Organizational
CN 1.02002 -
Financial
FROM ACCOUNTABILITY IN ONE DIMENSION TO THREE AND BEYOND
THE FUTURE (CN 4.0?): OUTCOME MEASUREMENT
2013 – Mission
Why is this is one of the most important issues for those who want to create
social value?
7
8
90%
87%
78%
76%
62%
59%
46%
41%
34%
31%
30%
28%
24%
0% 20% 40% 60% 80% 100%
Org's Effectiveness
How the Org will Use my Donation
Quality of Leadership
Percent of Costs to Overhead
Ease of Donation
Not Being Asked for Money Too Often
Ability to Direct Donation's Use
Regular Progress Reports
Endorsements by Person I Trust
Prompt and Sincere Thank You
Ability to Get Involved
Org Approach - Novel / Innovative
Contact with the End Beneficiaries
THE DONOR PROBLEM
* Based on the Money for Good donor research of Hope Consulting
Because donors will have access to much more robust information than ever before about each organization’s ability to bring about social value (long lasting and meaningful change in the world).
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WHY IT IS SO IMPORTANT FOR DONORS?
The Nonprofit Sector Problem*
“… there is virtually no credible evidence that most nonprofit organizations actually produce any social value.”
*“The End of Charity” by David Hunter – Philadelphia Social Innovations Journal
Because many more social entrepreneurs will see to it that their charities will become focused on measuring and managing their performance.
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WHY IT IS SO IMPORTANT FOR CHARITIES?
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THE BENEFICIARY PROBLEM
Ultimately we believe this will lead to a significant and measurable improvement in human welfare and acceleration in solutions to our world’s most persistent problems.
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WHY IT IS SO IMPORTANT FOR BENEFICIARIES?
(The Nonprofit Marketplace Hewlett Foundation, 2008)
THE PROBLEM SOLVED
HOW WE ARE HELPING SOLVE THE PROBLEM
Recommended Resources
Recommended Action Steps