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Tech Talk
Presented by Ken Berger, President & CEO
GoogleNew York, NY
December 9, 2010
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Your Guide to Intelligent Giving
Where the Heart
Meets the Mind
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Charity Navigator in 30 (more) seconds
Estimated 3.3 million distinct visitors per year (4.7 million hits)
92% say evaluations affected their decision to support individual public charities
CN ratings influence decisions on billions in donations annually
Growth in Website Visits
18,259225,295
661,945
1,240,095
2,707,018
3,488,859
3,856,593 3,761,505
4,719,076
2002 2003 2004 2005 2006 2007 2008 2009 2010
Years
Visito
rs
……
…………
…………
……..
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• Personal Emotional Connection
• Friends Request• Faith Based• Name Recognition• Etc……………..
Why We Give
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(The Nonprofit Marketplace Hewlett Foundation, 2008)
*Includes Charity Navigator- evaluates nonprofits and provides meaningful information.** Includes individuals, foundations, corporations and government funders.
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The Explosive Growth of Nonprofits in the US
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The Problem
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The Solution!: A 3-D View
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QUALITIES OF A HIGH IMPACT ORGANIZATION
Accountability & Transparency
Financial Health
• Positive, sustainable change• Independently evaluatedHIGHER RISK
INVESTMENTLOWER RISK INVESTMENT
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Financial Health
Accountability/Transparency
Results More Comprehensive Rating System
Introducing CN 2.0
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THE EVOLUTION OF CHARITY NAVIGATOR2002 – 2007 - USED IRS DATA (990’S) BECAUSE MANY NONPROFITS DIDN’T LIKE US! IT WAS THE ONLY DATA AVAILABLE FOR META ANALYSIS.
2008 - ANNOUNCED PLANS TO REVAMP RATING SYSTEM TO MOVE TO 3-DIMENSIONAL
2009 - FORMED ADVISORY PANEL
2010 - RECEIVED HEWLETT GRANT TO LAUNCH VOLUNTEER RATING PILOT PROJECT TO SCALE UP.
2010 - PUT OUT A CALL FOR TECH PARTNERSHIPTO HELP US DEVELOP A PLATFORM FOR CN 2,0
2011 – PLAN TO LAUNCH ~$3MM FUNDRAISING CAMPAIGN TO SCALE UP CN 2.0
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CN 2.0 - From One Dimensional to 3-Dimensional
20
40
60
80
100
120
2002
to 201
020
11
2012
& B
eyon
d
% W
eig
ht o
f Rat
ing
Effectiveness/ Results
Accountability/ Transparency
Financial
100%Financial
33.3% Account-Ability/Trans-
parency
+66.6%
Financial
50%Results
+17%
Accountability/Transparency
+33%
Financial
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SCALING UP: 6 Steps to a 3-Dimensional Rating System
July 2010
Accountability &TransparencyMethodology
Launched (achieved)
Fall/Winter 2010
Financial Metrics
Revised (in process)
July 2011
Methodology to Measure Results
Launched (provided adequate funding is secured
to scale up)
Accountability & TransparencyNow Part of Star Rating
(in process)
July 2012
Results Dimension Now Part of Star Rating (assuming data has now been collected for all charities in CN’s database)
July 2013
Incorporation of reviews/data into Results Dimension (e.g.
beneficiary satisfaction, volunteer reviews,expert reviews and independent impact
evaluations.)
1
2
3
4
5
6
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TRANSPARENCY & ACCOUNTABILITY
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15
Source: Hope Consulting, Money for Good, May 2010
Performance (Results) Based Giving Gaps
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RESULTS7 Questions* - 50 Points Total Maximum
*For this prototype, we are using 7 questions devised by Keystone Accountability and New Philanthropy Capital.
QUESTION Max Points
1. What is the charity’s commitment to reporting results? 5
2. How does the charity demonstrate the demand for its services? 3
3. Does the charity report its activities (what it does)? 3
3. Does the charity report its outputs (short term results)? 3
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RESULTS7 Questions - 50 Points Total Maximum
QUESTION Max Points
5. Does the charity report its outcomes (defined as the identifiable differences that it makes through its work)?
10
6. What is the quality of evidence for reported results? 14
7. Does the charity adjust and improve in light of its results? 12
*Prototype for purpose of illustration only and in no way represents the final product.
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EFFECTIVENESS/RESULTS3rd Party Evaluations/Reviews
Weighted score based on quality and rigor of data:
1. Volunteer Reviews2. Primary Constituents Feedback3. Independent Expert Reviews4. Independent In-depth Research and
Analysis
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Charity Navigator Soon to Launch Collaboration with GreatNonprofits
Charity Navigator users will now be able to write and read reviews by Donors, Clients Served, Volunteers, Former Staff, Board Members, General Public
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Donors Can Expand for More Details
GNP REVIEWS TO REPLACE COMMENTS TAB
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The Battle for the Soul of the Nonprofit Sector
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OUR BEST HOPE
• Educated and Engaged Stakeholders are our Best Hope!
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More InformationArticle: “The Battle for the Soul of the Nonprofit
Sector” Berger, Penna and Goldberg, Philadelphia Social Innovation Journal
Books:1. Billions of Drops in Millions of Buckets by
Steve Goldberg2. Money Well Spent by Paul Brest, et. alWeb Sites1. www.alleffective .org2. www.keystoneaccountability.org3. www.WhatWorks.orgVideo: www.savingphilanthropy.org
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Your Questions & Our Web Addresses
Website- www.charitynavigator.org
Blogs- www.kenscommentary.org
blog.charitynavigator.org
Twitter- kenscommentary