Your Guide to Intelligent Giving

Where the Heart

Meets the Mind

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

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

WHY IS THERE A LACK OF RESULTS REPORTING?

• A Fear of Fallout from Potential Criticism• It’s All About the Work• Performance Measures are Reductionistic • Lack of Resources• Bored Boards• Donor Indifference• The Growth Motive• Inadequate Monitoring (Internal & External)

5

OUR DEFINITIONS OF ACCOUNTABILITY & TRANSPARENCY (per Prof. Brackman Reiser)

ACCOUNTABILITY - is an obligation or willingness by a charity to explain its actions to its stakeholders.1) FINANCIAL - to safeguard and manage the

charities 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 charity is achieving meaningful results.

TRANSPARENCY - an obligation or willingness by a charity to publish and make available critical

accountability data about the organization.

Financial Health

Accountability (Governance) & Transparency

Results Reporting

A scalable, in depth, multi-dimensional charity rating system.

CN 2.02011 -

Organizational

CN 1.02002 -

Financial

CN 3.02013 -

Mission

FROM ACCOUNTABILITY IN ONE DIMENSION TO THREE AND BEYOND

THE FUTURE (CN 4.0?): OUTCOME MEASUREMENT

7

PART 2

Why do you think this is the most important issue in the non-profit

sector today?

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

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Because donors will have access to much more robust information than ever before about each charity’s ability to bring about long lasting and meaningful change in the world.

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

11

Because many more charities will become focused on measuring and managing their performance. 

WHY IT IS SO IMPORTANT FOR CHARITIES?

12

THE BENEFICIARY PROBLEM

13

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.

WHY IT IS SO IMPORTANT FOR BENEFICIARIES?

(The Nonprofit Marketplace Hewlett Foundation, 2008)

THE PROBLEM SOLVED

HOW WE ARE HELPING SOLVE THE PROBLEM