TRANSPARENCY INTHE CANADIANCHARITABLESECTOR
TRANS·PAR·ENT             Adj.Allowing light to   pass through so that objects behind can be distinctly seen.
THE MEDIA’STAKE ONTRANSPARENCY
WHAT I’M GOING TOCOVER• An overview of free third-party transparency tools for  charitable organizations• An overview of I...
ABOUT ME• President, Common Good Strategies• Previously, Senior Research Associate at Imagine Canada• Designed CharityFocu...
DOES TRANSPARENCY HURTCHARITABLE DONATIONS?
“Satisfied customers tell threefriends, angry customers tell 3000”         Pete Blackshaw
% OF TAX FILERS CLAIMING      DONATIONS ON TAX RETURNS  50.0%  40.0%  30.0%    29.4%                                      ...
DONATION RATE TOCHARITIES, BY HOUSEHOLDS70%       62%60%50%                                                         55%40%...
LEVEL OF TRUST INCHARITIES, 2000 TO 200890%80%70%60%50%40%30%20%10%0%      2000        2004            2006     2008      ...
TOTAL DONATIONS TO CHARITIES  FROM INDIVIDUAL TAX RETURNS           (IN $1000S)   $9,000,000   $8,000,000   $7,000,000   $...
•   Lack of transparency can definitely hurt an individual charity•   One of the strongest predictors of donations to a pa...
According to the Muttart Foundation’s Talking AboutCharities Survey:• 49% of donors want more information about the work  ...
Source: Muttart Foundation’s Talking About Charities Report: 2008
TRANSPARENCYINTERMEDIARIESIN CANADA
CHARITY RATINGS
MONEYSENSECHARITY 100
CHARITY INTELLIGENCE
TOP PICKS            http://www.charityintelligence.ca/images/to            ppicks/ci_top_picks_2011.pdf
CHARITY MATCHING
A NEW TRANSPARENCYTOOL FOR CHARITIES
Provided by
“CharityFocus is a powerful and user-friendly,fully bilingual resource for the Canadian public,which providescomprehensive...
WHAT NEXT?• More structured details on volunteers?• More structured details on impact?• More APIs for social media as new ...
HOW TO USECHARITYFOCUS• Step 1. Make absolutely sure your current T3010 is  accurate and fully complete   • Make sure you ...
HOW TO GET MOREFROM CHARITYFOCUS• Upload your annual report• Upload your financial statements• Upload your social media ch...
THE PROBLEMS WITHT3010 INFORMATION
ERRORS ON THE    T3010 (2007)    Annual revenue                           With 1 error on    With 3 or more               ...
My favourite error:  $5.7 billion dollars in tax-receipted donations from one        organization
$205 million dollars Source: http://fotos.eluniversal.com.mx/coleccion/muestra_fotogaleria.html?idgal=3405
Approximately $5.7 billion dollars
UNDERESTIMATING REVENUE BY$1.5 BILLION
OTHER ERRORS•   In 2007...•   84% of organizations report dollars received    from tax-receipted gifts or fundraising    r...
OUR SOLUTION FORTHE PROBLEM
T3010 QUICKPREP• www.quickprep.ca• This tool was created with the support of Canada Revenue  Agency!
LIMITATIONS OF THE TOOL• Only errors that can be found by a computer    • Though over 150 business rules built into the sy...
THE FUTURE OF THEQUICKPREP• We hope to continue to improve it based on feedback from  users, charities, and the general pu...
ANOTHER COOL SITE
SEARCH FORDIRECTORS
the future oftransparency
MOBILE ACCESS
MOBILE• 7% of our traffic is from a mobile  device• Almost ½ of mobile traffic is now  from an Ipad• Almost 1/3 of mobile ...
WEB SEARCHES34      Average time on site: 58 seconds
MORE INFORMATIONON NONPROFITS• Almost no information on these organizations!
OTHER KEY TRENDS• More expectations• More charities, larger charities   • (Mo’ money, mo’ problems)• More ratings• More au...
ADDITIONS I’D LIKETO SEE TO THE T3010• More awareness of public usage of Charity data• Notes to the financial statements• ...
BECOMING MORE TRANSPARENT          Transparent concrete
QUICK CHANGES FORYOUR WEBSITE• Upload your annual reports on your website• Upload your audited financial statements   • De...
BIGGERCONSIDERATIONS INTRANSPARENCY•   According to your annual reports and financial statements,    did nothing bad happe...
THANK YOU!STEVE@GOODSTRATEGY.CA
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
Transparency in the charitable sector final
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Transparency in the charitable sector final

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A presentation about transparency in the Canadian charitable sector delivered at the Charity Legal Information Program Conference Being Good at Doing Good in February 2012.

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Transparency in the charitable sector final

  1. 1. TRANSPARENCY INTHE CANADIANCHARITABLESECTOR
  2. 2. TRANS·PAR·ENT Adj.Allowing light to pass through so that objects behind can be distinctly seen.
  3. 3. THE MEDIA’STAKE ONTRANSPARENCY
  4. 4. WHAT I’M GOING TOCOVER• An overview of free third-party transparency tools for charitable organizations• An overview of Imagine Canada’s new CharityFocus tool and what unique transparency resources it offers• An overview of the challenges (and solutions!) of using financial data in transparency-related tools• The future of transparency• Feel free to ask questions at any point!
  5. 5. ABOUT ME• President, Common Good Strategies• Previously, Senior Research Associate at Imagine Canada• Designed CharityFocus.ca• Designed T3010QuickPrep.ca• Many reports on the T3010• 1000s of hours working on T3010 and financial statements!Any opinions expressed are solely my own.
  6. 6. DOES TRANSPARENCY HURTCHARITABLE DONATIONS?
  7. 7. “Satisfied customers tell threefriends, angry customers tell 3000” Pete Blackshaw
  8. 8. % OF TAX FILERS CLAIMING DONATIONS ON TAX RETURNS 50.0% 40.0% 30.0% 29.4% 23.4% 20.0% 10.0% 0.0% 1993 1997 2001 2005 2009 1991 1992 1994 1995 1996 1998 1999 2000 2002 2003 2004 2006 2007 2008 2010Source: http://www.imaginecanada.ca/files/www/en/researchbulletins/rb1501en.pdf
  9. 9. DONATION RATE TOCHARITIES, BY HOUSEHOLDS70% 62%60%50% 55%40% 38%30% 29%20%10%0% Rate of giving to religious charities Rate of giving to non-religious charities Source: Analysis from Survey of Household Spending
  10. 10. LEVEL OF TRUST INCHARITIES, 2000 TO 200890%80%70%60%50%40%30%20%10%0% 2000 2004 2006 2008 A lot of trust Some trust
  11. 11. TOTAL DONATIONS TO CHARITIES FROM INDIVIDUAL TAX RETURNS (IN $1000S) $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $-Source: http://www.imaginecanada.ca/files/www/en/researchbulletins/rb1501en.pdf
  12. 12. • Lack of transparency can definitely hurt an individual charity• One of the strongest predictors of donations to a particular charity is trust in that charity• Most people do not use financial information, even if its available • Of those that do, most use it as a “heuristic” • Is it there or not? • The challenge is that people also use heuristics to judge the charity• The media definitely will use this information• It’s always better to have bad news come from your own organization
  13. 13. According to the Muttart Foundation’s Talking AboutCharities Survey:• 49% of donors want more information about the work charities do• 62% strongly agree that more attention should be paid to the work that charities do
  14. 14. Source: Muttart Foundation’s Talking About Charities Report: 2008
  15. 15. TRANSPARENCYINTERMEDIARIESIN CANADA
  16. 16. CHARITY RATINGS
  17. 17. MONEYSENSECHARITY 100
  18. 18. CHARITY INTELLIGENCE
  19. 19. TOP PICKS http://www.charityintelligence.ca/images/to ppicks/ci_top_picks_2011.pdf
  20. 20. CHARITY MATCHING
  21. 21. A NEW TRANSPARENCYTOOL FOR CHARITIES
  22. 22. Provided by
  23. 23. “CharityFocus is a powerful and user-friendly,fully bilingual resource for the Canadian public,which providescomprehensive financial information about allCanadian charities. The site draws fromorganizations T3010 filings to the CRA butalso provides charities with an opportunity toupload their own material to provide contextand meaning to the numbers.”- Stephen Faul, Vice President Strategic Communications andBusiness Development
  24. 24. WHAT NEXT?• More structured details on volunteers?• More structured details on impact?• More APIs for social media as new sites become popular
  25. 25. HOW TO USECHARITYFOCUS• Step 1. Make absolutely sure your current T3010 is accurate and fully complete • Make sure you have charitable programs, fundraising expenditures, etc. on the form • Check your math • Check for keying (that’s not a typo) areas that may have been introduced by CRA• Step 2. Ensure that key information is accurate going back for all years available (Revenue, Expenditures, Charitable Expenditures, Qualified Donees)• Step 3. Check all years available and ensure the information is accurate• Step 4. Make sure all future submissions are accurate.
  26. 26. HOW TO GET MOREFROM CHARITYFOCUS• Upload your annual report• Upload your financial statements• Upload your social media channels• Upload your brochures• Upload impact statements and evaluations you’d like to share with the public!• Upload your own RSS news stream• TELL YOUR STORY.
  27. 27. THE PROBLEMS WITHT3010 INFORMATION
  28. 28. ERRORS ON THE T3010 (2007) Annual revenue With 1 error on With 3 or more the T3010 errors Less than $30,000 42% 16% $30,000 to $99,999 35% 9% $100,000 to $249,999 29% 6% $250,000 to $499,999 25% 5% $500,000 to $999,999 22% 4% $1,000,000 to $9,999,999 22% 4% $10,000,000 or more 23% 5%http://www.muttart.org/sites/default/files/report/PerspectivesOnFundraising-FINAL.pdf
  29. 29. My favourite error: $5.7 billion dollars in tax-receipted donations from one organization
  30. 30. $205 million dollars Source: http://fotos.eluniversal.com.mx/coleccion/muestra_fotogaleria.html?idgal=3405
  31. 31. Approximately $5.7 billion dollars
  32. 32. UNDERESTIMATING REVENUE BY$1.5 BILLION
  33. 33. OTHER ERRORS• In 2007...• 84% of organizations report dollars received from tax-receipted gifts or fundraising revenues.• 58% completed the checklist on the T3010 which identifies which type of fundraising methods they use.• 27% of charities reported any amount greater than $0 for fundraising expenditures.
  34. 34. OUR SOLUTION FORTHE PROBLEM
  35. 35. T3010 QUICKPREP• www.quickprep.ca• This tool was created with the support of Canada Revenue Agency!
  36. 36. LIMITATIONS OF THE TOOL• Only errors that can be found by a computer • Though over 150 business rules built into the system• It’s an online only application• It does require basic technological skills
  37. 37. THE FUTURE OF THEQUICKPREP• We hope to continue to improve it based on feedback from users, charities, and the general public!• From reactive to proactive
  38. 38. ANOTHER COOL SITE
  39. 39. SEARCH FORDIRECTORS
  40. 40. the future oftransparency
  41. 41. MOBILE ACCESS
  42. 42. MOBILE• 7% of our traffic is from a mobile device• Almost ½ of mobile traffic is now from an Ipad• Almost 1/3 of mobile traffic is from an Iphone• Average time on site: 46 seconds
  43. 43. WEB SEARCHES34 Average time on site: 58 seconds
  44. 44. MORE INFORMATIONON NONPROFITS• Almost no information on these organizations!
  45. 45. OTHER KEY TRENDS• More expectations• More charities, larger charities • (Mo’ money, mo’ problems)• More ratings• More automatic processing of your data • Spiders, automatic processing of your website• Social media• Blogs
  46. 46. ADDITIONS I’D LIKETO SEE TO THE T3010• More awareness of public usage of Charity data• Notes to the financial statements• More information on volunteers• More sections for charities to provide context and impact to their filings• More details on technology expenditures• Online filing• Tiered forms
  47. 47. BECOMING MORE TRANSPARENT Transparent concrete
  48. 48. QUICK CHANGES FORYOUR WEBSITE• Upload your annual reports on your website• Upload your audited financial statements • Decide whether you might want to link to your T3010• Upload impact statements, key metrics, and evaluations that can show how well you’ve done!• Make it easy to find!
  49. 49. BIGGERCONSIDERATIONS INTRANSPARENCY• According to your annual reports and financial statements, did nothing bad happen last year?• Is this decision the sort of things my staff are going to complain about when they’re drunk after work?• Do reporting frameworks make sense for our organization?• Do we want to highlight our transparency by joining Standards of Accreditation organizations?• How can we explain to our stakeholders how our decisions are made? • How can people contribute to the decision making?• Should we upload all of our policies relating to conflict of interest, ethics, whistleblowing, ethics, etc.?
  50. 50. THANK YOU!STEVE@GOODSTRATEGY.CA

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