accountability & transparency: more than good intentions

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ACCOUNTABILITY & TRANSPARENCY: More Than Good Intentions Presentation at Charity Review Council Annual Forum Ken Berger, President & CEO June 15, 2010

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Ken Berger, Charity Navigator’s President & CEO, delivers the keynote speech at the Charities Review Council’s Annual Forum. His talk, Accountability & Transparency: More Than Good Intentions, shares his ideas and views on the importance of responsibility and transparency in the nonprofit sector as well as the necessary steps charities need to take in order to achieve good governance.

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Page 1: Accountability & Transparency: More Than Good Intentions

ACCOUNTABILITY & TRANSPARENCY:

More Than Good Intentions

Presentation atCharity Review Council Annual Forum

Ken Berger, President & CEO

June 15, 2010

Page 2: Accountability & Transparency: More Than Good Intentions
Page 3: Accountability & Transparency: More Than Good Intentions

IN THE BEGINNING

Page 4: Accountability & Transparency: More Than Good Intentions

~30 Years Doing “the Work”

Page 5: Accountability & Transparency: More Than Good Intentions

IN MY HEAD I KEPT THINKING

Page 6: Accountability & Transparency: More Than Good Intentions

Tales of the Dark Side

• The Scoundrel – Use everyone and take whatever you can.

• The Thief – “We’re smart, so let’s make money”.

• The Hanger On – Money for nothing.

Page 7: Accountability & Transparency: More Than Good Intentions

WHY?

Page 8: Accountability & Transparency: More Than Good Intentions

The Explosive Growth of Nonprofits in the US

Page 9: Accountability & Transparency: More Than Good Intentions

$1.9 Trillion in Public Charity Revenues

~1.9 million Nonprofits

61% (1.2 million) are Public Charities (PCs)

*6% of PCs get 96% of Revenues = $1.86 million

**.2% of PCs get 59% of Revenues = $1.5 Trillion

* Houses of Worship do not file w/IRS regardless of size

**94% of PCs spend 4% of the revenues - $79 million

Page 10: Accountability & Transparency: More Than Good Intentions

Accountability & Transparency

Page 11: Accountability & Transparency: More Than Good Intentions

QUALITIES OF A HIGH IMPACT ORGANIZATION

Accountability & Transparency

Financial Health

• Positive, sustainable change• Independently evaluatedHIGHER RISK

INVESTMENTLOWER RISK INVESTMENT

Page 12: Accountability & Transparency: More Than Good Intentions

Financial Health

Accountability/Transparency

Effectiveness/Results

More Comprehensive Rating System

Introducing CN 2.0

Page 13: Accountability & Transparency: More Than Good Intentions

Accountability & Transparency: IRS 990 Reporting Form Info.

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Acountability & Transparency: Web Site Information

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More on WebDoes the charity web site have readily

accessible information about the following:

• Its goals and objectives?• Its strategies for achieving them?• Its capacity for achieving them?• How it measures progress in achieving them?• What its measurements indicate about progress to date?

Page 16: Accountability & Transparency: More Than Good Intentions

The Battle for the Soul of the Nonprofit Sector

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More Information

Articles: in Philadelphia Journal of Social Innovation1. “The End of Charity” by David Hunter 2. “The Battle for the Soul of the NP Sector” by Berger, Penna and Goldberg

Book: Billions of Drops in Millions of Buckets: Why Philanthropy Doesn’t Advance Social Progress by Steve Goldberg

Web Sites1. www.alleffective .org2. Google: Nonprofit Effectiveness, Independent Sector3. www. WhatWorks.org

Video: www.savingphilanthropy.org

Page 18: Accountability & Transparency: More Than Good Intentions

Your Questions and Our Web Addresses

Website- www.charitynavigator.org

Blogs- www.kenscommentary.org

blog.charitynavigator.org

Twitter- kenscommentary