HEBS Conference at Harvard

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Ken Berger, President & CEO of Charity Navigator, presentation at a conference at Harvard University (for their extension business school students) regarding Social Entrepreneurship and how it relates to Charity Navigator's work.

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HEBS Conference at Harvard

  1. 1. Your GuidetoIntelligentGivingWhere theHeartMeets theMindCritical Friend to Charities
  2. 2. The Data Proves Impact 4.5 million distinctvisitors (6.4 millionhits) in 2012 92% sayevaluationsaffected theirdecision to supportindividual publiccharities CN ratingsinfluence decisionson billions indonations annually010000002000000300000040000005000000600000070000002002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
  3. 3. 4OUR DEFINITIONS OF ACCOUNTABILITY &TRANSPARENCY (per Prof. Brackman Reiser)ACCOUNTABILITY - is an obligation or willingness byan organization to explain its actions to itsstakeholders.1)FINANCIAL - to safeguard and manage theorganizations financial resources.2)ORGANIZATIONAL – to consistently follow rules ofgovernance and operational process.3)MISSION – to set goals and then measure andmanage performance to assure the organization isachieving meaningful results.TRANSPARENCY - an obligation or willingness by aorganization to publish and make available critical
  4. 4. QUALITIES OF AN ACCOUNTABLE & HIGH IMPACT ORG.Financial Health• Strategy/Theory of Change•Passion•Experience•Persistence• Creativity• Ability to get other s to followCapableLeadership• Data management discipline• Constituent feedback• Outcome focused intent• Relate efforts to outcomes• Learn and adjust approach• Continuous improvementHighPerformanceImpact• Positive, sustainablechange• IndependentlyevaluatedHIGHER RISKINVESTMENTLOWER RISKINVESTMENT* Inspired by the Alliance for Effective Social InvestingMission Accountability: Results(RR)Organizational Accountability: Governance (A&T)Financial Accountability: Financial Health
  5. 5. FinancialHealthAccountability(Governance)&TransparencyResultsReportingA scalable, indepth, multi-dimensionalcharity ratingsystem.CN 2.02011 -OrganizationalCN 1.02002 -FinancialFROM ACCOUNTABILITY IN ONEDIMENSION TO THREE AND BEYONDTHE FUTURE (CN 4.0?):OUTCOME MEASUREMENT2013 –Mission
  6. 6. Why is this is one of themost important issues forthose who want to createsocial value?7
  7. 7. 890%87%78%76%62%59%46%41%34%31%30%28%24%0% 20% 40% 60% 80% 100%Orgs EffectivenessHow the Org will Use my DonationQuality of LeadershipPercent of Costs to OverheadEase of DonationNot Being Asked for Money Too OftenAbility to Direct Donations UseRegular Progress ReportsEndorsements by Person I TrustPrompt and Sincere Thank YouAbility to Get InvolvedOrg Approach - Novel / InnovativeContact with the End BeneficiariesTHE DONOR PROBLEM* Based on the Money for Good donor research of Hope Consulting
  8. 8. Because donors will have access to muchmore robust information than ever beforeabout each organization’s ability to bringabout social value (long lasting andmeaningful change in the world).9WHY IT IS SO IMPORTANT FOR DONORS?
  9. 9. The Nonprofit Sector Problem*“… there is virtually no credible evidencethat most nonprofit organizations actuallyproduce any social value.”*“The End of Charity” by David Hunter – Philadelphia Social Innovations Journal
  10. 10. Because many more social entrepreneurswill see to it that their charities will becomefocused on measuring and managing theirperformance.11WHY IT IS SO IMPORTANT FOR CHARITIES?
  11. 11. 12THE BENEFICIARY PROBLEM
  12. 12. Ultimately we believe this will lead to asignificant and measurable improvementin human welfare and acceleration insolutions to our world’s most persistentproblems.13WHY IT IS SO IMPORTANT FOR BENEFICIARIES?
  13. 13. (The NonprofitMarketplaceHewlett Foundation,2008)THE PROBLEM SOLVED
  14. 14. HOW WE ARE HELPING SOLVE THE PROBLEM
  15. 15. Recommended Resources
  16. 16. Recommended Action Steps

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