The Battle for the Soul of the Nonprofit Sector
Presentation atBeing Good at Doing Good 2012 Conference
Ken Berger, President & CEOCharity NavigatorFebruary 13, 2012
Your Guide to Intelligent Giving
Where the Heart
Meets the Mind
Critical Friend to Charities
3
UNSEEN BATTLE LINES BEING DRAWN …
What is the greatest battle facing the charitable sector?
TOO MANYNONPROFITS?
DWINDLING FUNDING?
LOW CEO SALARIES& LOW OVERHEAD?
The Core of the Battle As I See It*
“… 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
TODAY: THE NP WITH THE BEST MARKETING WINS
WHO HAS THE $ TO DO THE BEST MARKETING?
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THE GRANTMAKING CIRCUS:FOUNDATIONS HAVE A SIMILAR CONCENTRATION
According to the Foundation Center …, private grant-making foundations in the United States numbered 73,764, only 1,293 of them (1.8 percent) had assets of $50 million or more.
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THE POLITICS OF GOVERNMENT FUNDING
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PIED PIPERS FOR NO REAL ACCOUNTABILITY
SCHAMBRA PALLOTTA
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OTHER OBSTACLES TO SURMOUNT
• A Fear of Fallout from Potential Criticism• It’s All About the Work• Performance Measures are Reductionistic • Lack of Resources• Disengaged Boards• Donor Indifference• The Growth Motive• Inadequate Monitoring (Internal & External)
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IS THE BATTLE OVER FOR THE NONPROFIT SECTOR?
(The Nonprofit Marketplace Hewlett Foundation, 2008)
THE WINNING BATTLE PLAN
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MEASURING AND REPORTING ON WHAT?
ACCOUNTABILITY!
1)FINANCIAL
2)ORGANIZATIONAL
3)MISSION
QUALITIES OF BATTLE WINNING N.P. ORGS.
Financial Health
• Strategy/Theory of Change• Passion• Experience• Persistence• Creativity• Ability to get other s to follow
Capable Leadership
• Positive, sustainable change
• Independently evaluatedHIGHER RISK
INVESTMENTLOWER RISK INVESTMENT
* Inspired by the Alliance for Effective Social Investing
Mission: Results
Organizational: Governance
Financial: 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
CN’s ROLE IN THE BATTLE
THE FUTURE (CN 4.0?): OUTCOME MEASUREMENT
2013 – Mission
MISSION ACCOUNTABILITY: RESULTS REPORTING
1. Alignment of Mission, Solicitations and Resources
2. Results Logic and Measures
3. Validators
4. Constituent Voice
5. Published Evaluation Reports
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BATTLING MYTHS
OUTPUT
To the Charities of America
STEP ONE STEP TWO
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A BODACIOUS DREAM FOR WINNING THE BATTLE
RESULTS STATEMENTS,
TODAY TOMORROW
ARMING YOURSELF FOR THE BATTLE
BATTLE ACTION STEPS ONCE ARMED
THE NEED FOR LEADERS IN THE BATTLE
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TO SUM UP, LET’S DO IT!
Email: [email protected]
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BATTLE COMMUNICATIONS
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