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Why do I do what I do?


Philanthropy Camp – Newport, Rhode Island
          Presented by Ken Berger
    President & Chief Executive Officer
             Charity Navigator

             August 5, 2010
In The Beginning Was The Buddha
Poverty and Children

More than 1 billion children suffer from a
 lack of;
 proper nutrition
 safe drinking water
 decent sanitation facilities
 health-care services
 shelter
 education and information
Searching For What Is Meaningful
Radical Son
Charity Leader
~30 Years Doing “the Work”
The Logical Next Step
Charity Navigator’s Current Impact
 Estimated 3+ million                                                               Growth In Website Usage
  distinct visitors per                                                                                                                                 3,316,587

  year                                                                                                                2,835,167
                                                                                                                                  3,102,308 3,011,423




                            N u m b e r o f U n iq u e V is it
                                                                                                          2,707,018

 92% say CN ratings
  affected their decision
  to support individual                                                                       1,240,095

  charities                                                                         661,945

 CN ratings influence                                           18,259
                                                                          225,295


  billions in donations
                                                                 2002 2003 2004 2005 2006 2007 2008 2009 2010
  each year                                                                                                Years
The Explosive Growth of Nonprofits in the US
$1.9 Trillion in Public Charity Revenues

          *.2% of PCs get 59% of Revenues = $1.5 Trillion


          **6% of PCs get 96% of Revenues = $1.86 million


            61% (1.2 million) are Public Charities (PCs)


                       ~1.9 million Nonprofits

* ~3,000 charities with annual revenues over $100 million
**~100,000 charities with annual revenues over $1 million
What is Meaningful for a Hi-Performing Charity?
                        Accountability & Transparency




                                                        • Positive, sustainable 
                                                        change
                                                        • Independently 
HIGHER RISK                                             evaluated                  LOWER RISK 
INVESTMENT                                                                         INVESTMENT




                                 Financial Health
Independent Evaluation is Critical
       to Ensure that Social Investing Keeps Pace with the
             Growing Need for Nonprofit Programs

        Charity Navigator            Social Investors (donors
      evaluates charities and             w/eyes open)
             provides                        demand
      meaningful information          meaningful information




Social Investors use meaningful information to make better decisions




                     High-performing nonprofits
                          get more money
Introducing CN 2.0




Financial   Accountability/   Effectiveness   More
Health      Transparency      /Results        Comprehensive
                                              Rating System
3 Golden Rules of Philanthropy
1. Giving using the heart w/o head is
   usually ineffective.
2. Giving using the head w/o heart is
   ultimately unsustainable & meaningless.
3. Giving using both is called social
   investing and can lead to real impact –
   meaningful and lasting change in
   communities and people’s lives.
The Battle for the Soul of the Nonprofit Sector
Your Questions & Our Web
       Addresses
Website- www.charitynavigator.org
Blogs- www.kenscommentary.org
    blog.charitynavigator.org
    Twitter- kenscommentary

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Philanthropy Camp - August 2010

  • 1. Why do I do what I do? Philanthropy Camp – Newport, Rhode Island Presented by Ken Berger President & Chief Executive Officer Charity Navigator August 5, 2010
  • 2.
  • 3. In The Beginning Was The Buddha
  • 4. Poverty and Children More than 1 billion children suffer from a lack of;  proper nutrition  safe drinking water  decent sanitation facilities  health-care services  shelter  education and information
  • 5.
  • 6. Searching For What Is Meaningful
  • 9. ~30 Years Doing “the Work”
  • 11. Charity Navigator’s Current Impact  Estimated 3+ million Growth In Website Usage distinct visitors per 3,316,587 year 2,835,167 3,102,308 3,011,423 N u m b e r o f U n iq u e V is it 2,707,018  92% say CN ratings affected their decision to support individual 1,240,095 charities 661,945  CN ratings influence 18,259 225,295 billions in donations 2002 2003 2004 2005 2006 2007 2008 2009 2010 each year Years
  • 12. The Explosive Growth of Nonprofits in the US
  • 13. $1.9 Trillion in Public Charity Revenues *.2% of PCs get 59% of Revenues = $1.5 Trillion **6% of PCs get 96% of Revenues = $1.86 million 61% (1.2 million) are Public Charities (PCs) ~1.9 million Nonprofits * ~3,000 charities with annual revenues over $100 million **~100,000 charities with annual revenues over $1 million
  • 14. What is Meaningful for a Hi-Performing Charity? Accountability & Transparency • Positive, sustainable  change • Independently  HIGHER RISK  evaluated LOWER RISK  INVESTMENT INVESTMENT Financial Health
  • 15. Independent Evaluation is Critical to Ensure that Social Investing Keeps Pace with the Growing Need for Nonprofit Programs Charity Navigator Social Investors (donors evaluates charities and w/eyes open) provides demand meaningful information meaningful information Social Investors use meaningful information to make better decisions High-performing nonprofits get more money
  • 16. Introducing CN 2.0 Financial Accountability/ Effectiveness More Health Transparency /Results Comprehensive Rating System
  • 17. 3 Golden Rules of Philanthropy 1. Giving using the heart w/o head is usually ineffective. 2. Giving using the head w/o heart is ultimately unsustainable & meaningless. 3. Giving using both is called social investing and can lead to real impact – meaningful and lasting change in communities and people’s lives.
  • 18. The Battle for the Soul of the Nonprofit Sector
  • 19. Your Questions & Our Web Addresses Website- www.charitynavigator.org Blogs- www.kenscommentary.org blog.charitynavigator.org Twitter- kenscommentary