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Charity Navigator: Financial Measures and Beyond


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Presentation by Ken Berger, president & CEO of Charity Navigator at InsideNGO's Finance Grants and Contracts Annual Meeting, July 13, 2010.

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Charity Navigator: Financial Measures and Beyond

  1. 1. Charity Navigator: Financial Measures and Beyond Presentation at InsideNGO: Finance Grants and Contracts Annual Meeting Ken Berger, President & CEO July 13, 2010
  2. 3. AGENDA <ul><li>What limitations exist with the current rating system? </li></ul><ul><li>How should nonprofit impact be measured beyond simple metrics of financial ratios or program outputs? </li></ul><ul><li>What is in store with the next generation of charity effectiveness rating systems? </li></ul><ul><li>One smile and one fact </li></ul>
  3. 4. <ul><li>America's premier </li></ul><ul><li>independent charity </li></ul><ul><li>evaluator providing timely, relevant, </li></ul><ul><li>unbiased information on the fiscal health </li></ul><ul><li>of nonprofit organizations. </li></ul><ul><li>Largest evaluator of charities: 5,500+ </li></ul>#1 Web Site for Rating Charities – “Your Guide to Intelligent Giving”
  4. 5. The Data Proves Impact <ul><li>92% say evaluations affected their decision to support individual charities </li></ul><ul><li>CN ratings influence billions in donations </li></ul><ul><li>The majority of CN users are: Older, Higher Income, More Educated, Online Investors </li></ul>
  5. 6. Mission <ul><li>1. </li></ul><ul><li>To help private contributors make intelligent decisions when selecting a charity to support, by providing information on our evaluation of the performance of charities. </li></ul>
  6. 7. Mission (continued) <ul><li>2. </li></ul><ul><li>To educate private contributors and policymakers by providing information regarding what is of critical importance when making a social investment in a nonprofit. </li></ul>
  7. 8. Mission (continued) <ul><li>3. </li></ul><ul><li>To drive more funding to high performing nonprofits by highlighting them and providing them with objective information to leverage with their supporters and prospective social investors. </li></ul>
  8. 9. Our Old Rating System – One Dimensional
  9. 10. The Problem?
  10. 11. The Solution!: A 3-D View
  11. 12. QUALITIES OF A HIGH IMPACT ORGANIZATION Accountability & Transparency Financial Health <ul><li>Positive, sustainable change </li></ul><ul><li>Independently evaluated </li></ul>HIGHER RISK INVESTMENT LOWER RISK INVESTMENT
  12. 13. Introducing CN 2.0: A 3-D View Financial Health Accountability/Transparency Effectiveness/Results More Comprehensive Rating System
  13. 14. Accountability & Transparency Accountability & Transparency
  14. 15. Accountability & Transparency : IRS 990 Reporting Form Info.
  15. 16. Accountability & Transparency: Web Site Information
  16. 17. Accountability & Transparency: More on Web <ul><li>Does the charity web site have readily accessible information about the following: </li></ul><ul><li>Its goals and objectives? </li></ul><ul><li>Its strategies for achieving them? </li></ul><ul><li>Its capacity for achieving them? </li></ul><ul><li>How it measures progress in achieving them? </li></ul><ul><li>What its measurements indicate about progress to date? </li></ul>
  17. 18. Effectiveness & Results: The Holy Grail Effectiveness & Results: The Holy Grail
  18. 19. Effectiveness & Results: Collaboration <ul><li>Independent Sector/BBB – self report </li></ul><ul><li>GiveWell – deep data review </li></ul><ul><li>GreatNonprofits - everyone </li></ul><ul><li>Growth Philanthropy Network – “almosts” </li></ul><ul><li>Keystone Accountability - constituents </li></ul><ul><li>Philanthropedia – experts </li></ul><ul><li>New Philanthropy Capital – overall analysis </li></ul>
  19. 20. The Battle for the Soul of the Nonprofit Sector
  20. 21. More Information <ul><li>Articles: in Philadelphia Journal of Social Innovation </li></ul><ul><li>“ The End of Charity” by David Hunter </li></ul><ul><li>“ The Battle for the Soul of the NP Sector” by Berger, Penna and Goldberg </li></ul><ul><li>Book : Billions of Drops in Millions of Buckets: Why Philanthropy Doesn’t Advance Social Progress by Steve Goldberg </li></ul><ul><li>Web Sites </li></ul><ul><li>www.alleffective .org </li></ul><ul><li>Google: Nonprofit Effectiveness, Independent Sector </li></ul><ul><li>Video : </li></ul>
  21. 22. Your Questions & Our Web Addresses Website- Blogs- Twitter- kenscommentary