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Presentation by Ken Berger, president & CEO of Charity Navigator at InsideNGO's Finance Grants and Contracts Annual Meeting, July 13, 2010.
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Charity Navigator: Financial Measures and Beyond
Presentation atInsideNGO: Finance Grants and Contracts
Annual Meeting
Ken Berger, President & CEO
July 13, 2010
AGENDA
• What limitations exist with the current rating system?
• How should nonprofit impact be measured beyond simple metrics of financial ratios or program outputs?
• What is in store with the next generation of charity effectiveness rating systems?
• One smile and one fact
America's premier
independent charity
evaluator providing timely, relevant,
unbiased information on the fiscal health
of nonprofit organizations.
Largest evaluator of charities: 5,500+
#1 Web Site for Rating Charities – “Your Guide to
Intelligent Giving”
5
The Data Proves Impact
• 92% say evaluations affected their decision to support individual charities
• CN ratings influence billions in donations
• The majority of CN users are: Older, Higher Income, More Educated, Online Investors
Growth In Website Usage
18,259225,295
661,945
1,240,095
2,707,0182,835,167
3,102,308 3,011,423
3,316,587
2002 2003 2004 2005 2006 2007 2008 2009 2010
Years
Numb
er o
f Uni
que V
isito
rs
Mission1.
To help private contributors make intelligent decisions when selecting a charity to support, by providing information on our evaluation of the performance of charities.
Mission (continued)
2.
To educate private contributors and policymakers by providing information regarding what is of critical importance when making a social investment in a nonprofit.
Mission (continued)
3.
To drive more funding to high performing nonprofits by highlighting them and providing them with objective information to leverage with their supporters and prospective social investors.
Our Old Rating System – One Dimensional
The Problem?
The Solution!: A 3-D View
QUALITIES OF A HIGH IMPACT ORGANIZATION
Accountability & Transparency
Financial Health
• Positive, sustainable change• Independently evaluatedHIGHER RISK
INVESTMENTLOWER RISK INVESTMENT
Financial Health
Accountability/Transparency
Effectiveness/Results
More Comprehensive Rating System
Introducing CN 2.0: A 3-D View
Accountability & Transparency
Accountability & Transparency
Accountability & Transparency : IRS 990 Reporting Form Info.
Accountability & Transparency: Web Site Information
Accountability & Transparency: More on Web
Does 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?
Effectiveness & Results: The Holy
Grail
Effectiveness & Results: The Holy Grail
Effectiveness & Results: Collaboration
• Independent Sector/BBB – self report • GiveWell – deep data review• GreatNonprofits - everyone• Growth Philanthropy Network – “almosts”• Keystone Accountability - constituents• Philanthropedia – experts• New Philanthropy Capital – overall
analysis
The Battle for the Soul of the Nonprofit Sector
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 Sector• Video: www.savingphilanthropy.org
Your Questions & Our Web Addresses
Website- www.charitynavigator.org
Blogs- www.kenscommentary.org
blog.charitynavigator.org
Twitter- kenscommentary
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