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Nonprofit Analysis: Beyond Metrics

Nonprofit Analysis: Beyond Metrics

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SOCAP10 presentation by Charity Navigator's President & CEO Presentation Transcript

  • 1. Nonprofit Analysis: Beyond Metrics Tactical Philanthropy Track CN 2.0 3-Dimensional Rating System Prototype * Presented by Ken Berger, President & CEO SOCAP10 San Francisco, California October 5, 2010 *Prototype for purpose of illustration only and in no way represents the final product.
  • 2. THE EVOLUTION OF CHARITY NAVIGATOR
    • 2001 – FORMED WITH A MISSION TO BE A DONOR’S GUIDE TO INTELLIGENT GIVING.
    • 2002 – 2007 - USED IRS DATA (990’S) BECAUSE MANY NONPROFITS DIDN’T LIKE US! IT WAS THE ONLY DATA AVAILABLE FOR META ANALYSIS.
    • 2008 - ANNOUNCED PLANS TO REVAMP RATING SYSTEM TO MOVE TO 3-DIMENSIONAL
    • 2009 - FORMED ADVISORY PANEL
    • 2010 - RECEIVED HEWLETT GRANT TO
    • LAUNCH VOLUNTEER STUDENT RATING PILOT
    • PROJECT TO SCALE UP & FIDELITY CGF TRUSTEE’S PHILANTHROPY FUND FOR STRATEGIC PLANNING .
  • 3. 100% Financial 33.3% Account- Ability/ Trans- parency + 66.6% Financial 50% Effectiveness/Results + 17% Accountability/ Transparency + 33% Financial
  • 4. SCALING UP: 6 Steps to a 3-Dimensional Rating System July 2010 Accountability & Transparency Methodology Launched (achieved) Fall/Winter 2010 Financial Metrics Revised (in process) July 2011 Methodology to Measure Effectiveness/Results Launched (provided adequate funding is secured to scale up) Accountability & Transparency Now Part of Star Rating (data will have been collected for all charities in CN’s database at this point) July 2012 Effectiveness/Results Dimension Now Part of Star Rating (assuming data has now been collected for all charities in CN’s database) July 2013 Incorporation of reviews/data into Effectiveness/Results Dimension (e.g. beneficiary satisfaction, volunteer reviews, expert reviews and independent impact evaluations.) 1 2 3 4 5 6
  • 5.
    • Working Capital
    • Current Ratio
    SUSTAINABILITY (23) < 8 < 9 < 13 High Risk 0 Stars 8 – 11 9 – 10 13 – 17 Significant Risk 12 – 25 11 – 12 18 – 21 Intermediate Risk 26 – 37 13 – 14 22 – 26 Moderate Risk 38 – 50 15 – 17 27 – 33 Low Risk Keystone/NPC 6 Questions & 3 rd Party Reviews Web Site & 990s Overhead (3 yr. moving average) EFFICIENCY (10) EFFECTIVENESS/ RESULTS (50 Points) ACCOUNTABILITY/ TRANSPARENCY (17 Points) FINANCIAL (33 Points)
  • 6. EFFECTIVENESS/RESULTS 0 – 4 STARS 50 Points Max DCCK: 41 out of 50 ACCOUNTABILITY/ TRANSPARENCY 0 – 4 STARS 17 Points Max DCCK : 14 out of 17 FINANCIAL 0 – 4 STARS 33 Points Max DCCK: 27 out of 33 0VERALL SCORE: 0 – 4 STARS; 100 POINTS; RISK LEVEL DCCK SCORECARD: 82/100 POINTS Low Risk
  • 7. EFFECTIVENESS/RESULTS 6 Questions* 50 Points Total Maximum *For this prototype, we are using 6 questions devised by Keystone Accountability and New Philanthropy Capital. 3 3 3. Does the charity report its outputs (what it does)? 3 3 2. How does the charity demonstrate the demand for its services? 5 5 1. What is the charity’s commitment to reporting results? DCCK Score Max Points QUESTION
  • 8. EFFECTIVENESS/RESULTS 6 Questions 50 Points Total Maximum DCCK SCORE: 41 OUT OF 50 Rating: 8 12 6. Does the charity adjust and improve in light of its results? 7 12 5. What is the quality of evidence for reported results? 15 15 4. Does the charity report its outcomes (defined as the identifiable differences that it makes through its work)? DCCK Score Max Points QUESTION
  • 9. EFFECTIVENESS/RESULTS 3 rd Party Evaluations/Reviews Weighted score based on quality and rigor of data:
    • Volunteer Reviews
    • Primary Constituents Feedback
    • Independent Expert Reviews
    • Independent In-depth Research and Analysis