The Battle for the Soul of the Nonprofit Sector

Presentation at
Being Good at Doing Good 2012 Conference
Ken Berger, Pres...
Your Guide
to
Intelligent
Giving

Where the
Heart
Meets the
Mind

Critical Friend to Charities
UNSEEN BATTLE LINES BEING DRAWN …

3
What is the greatest battle facing the charitable sector?

TOO MANY
NONPROFITS?

DWINDLING
FUNDING?

LOW CEO SALARIES
& LO...
The Core of the Battle As I See It*
“… there is virtually no
credible evidence
that most nonprofit
organizations
actually ...
TODAY: THE NP WITH THE BEST MARKETING WINS
WHO HAS THE $ TO DO THE BEST MARKETING?
THE GRANTMAKING CIRCUS:
FOUNDATIONS HAVE A SIMILAR CONCENTRATION

According to the Foundation Center …, private
grant-maki...
THE POLITICS OF GOVERNMENT FUNDING

9
PIED PIPERS FOR NO REAL ACCOUNTABILITY

SCHAMBRA

PALLOTTA

10
OTHER OBSTACLES TO SURMOUNT
• A Fear of Fallout from Potential Criticism
• It’s All About the Work
• Performance Measures ...
IS THE BATTLE OVER FOR THE NONPROFIT SECTOR?

12
THE WINNING BATTLE PLAN

(The Nonprofit
Marketplace
Hewlett Foundation,
2008)
MEASURING AND REPORTING ON WHAT?
ACCOUNTABILITY!
1)FINANCIAL
2)ORGANIZATIONAL
3)MISSION

14
QUALITIES OF BATTLE WINNING N.P. ORGS.
Organizational: Governance

Mission: Results

HIGHER RISK
INVESTMENT

• Strategy/Th...
CN’s ROLE IN THE BATTLE
CN 1.0

CN 2.0

2002 Financial

2011 Organizational

Financial
Health

Accountability
(Governance)...
MISSION ACCOUNTABILITY: RESULTS REPORTING
1. Alignment of Mission, Solicitations and Resources
2. Results Logic and Measur...
BATTLING MYTHS
STEP ONE

STEP TWO
OUTPUT

To the Charities of America

18
A BODACIOUS DREAM FOR WINNING THE BATTLE

RESULTS STATEMENTS,

TODAY

TOMORROW

19
ARMING YOURSELF FOR THE BATTLE
BATTLE ACTION STEPS ONCE ARMED
THE NEED FOR LEADERS IN THE BATTLE
TO SUM UP, LET’S DO IT!

23
BATTLE COMMUNICATIONS
Email: kberger@charitynavigator.org
Blogs:

www.kenscommentary.org
blog.charitynavigator.org

Twitte...
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Closing keynote presentation at Global Washington's 5th Annual Conference

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Ken Berger, President & CEO of Charity Navigator, delivered the closing keynote presentation at Global Washington's 5th Annual Conference in Seattle in November 2013. His presentation, titled “The Battle for the Soul of the Nonprofit Sector,”covered a wide variety of issues regarding the obstacles we face and the solutions available to make the nonprofit sector as efficient and effective as it can be.

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Closing keynote presentation at Global Washington's 5th Annual Conference

  1. 1. The Battle for the Soul of the Nonprofit Sector Presentation at Being Good at Doing Good 2012 Conference Ken Berger, President & CEO Charity Navigator February 13, 2012
  2. 2. Your Guide to Intelligent Giving Where the Heart Meets the Mind Critical Friend to Charities
  3. 3. UNSEEN BATTLE LINES BEING DRAWN … 3
  4. 4. What is the greatest battle facing the charitable sector? TOO MANY NONPROFITS? DWINDLING FUNDING? LOW CEO SALARIES & LOW OVERHEAD?
  5. 5. The Core of the Battle As I See It* “… there is virtually no credible evidence that most nonprofit organizations actually produce any social value.” *“The End of Charity” by David Hunter – Philadelphia Social Innovations Journal
  6. 6. TODAY: THE NP WITH THE BEST MARKETING WINS
  7. 7. WHO HAS THE $ TO DO THE BEST MARKETING?
  8. 8. THE GRANTMAKING CIRCUS: FOUNDATIONS HAVE A SIMILAR CONCENTRATION According to the Foundation Center …, private grant-making foundations in the United States numbered 73,764, only 1,293 of them (1.8 percent) had assets of $50 million or more. 8
  9. 9. THE POLITICS OF GOVERNMENT FUNDING 9
  10. 10. PIED PIPERS FOR NO REAL ACCOUNTABILITY SCHAMBRA PALLOTTA 10
  11. 11. OTHER OBSTACLES TO SURMOUNT • A Fear of Fallout from Potential Criticism • It’s All About the Work • Performance Measures are Reductionistic • Lack of Resources • Disengaged Boards • Donor Indifference • The Growth Motive • Inadequate Monitoring (Internal & External) 11
  12. 12. IS THE BATTLE OVER FOR THE NONPROFIT SECTOR? 12
  13. 13. THE WINNING BATTLE PLAN (The Nonprofit Marketplace Hewlett Foundation, 2008)
  14. 14. MEASURING AND REPORTING ON WHAT? ACCOUNTABILITY! 1)FINANCIAL 2)ORGANIZATIONAL 3)MISSION 14
  15. 15. QUALITIES OF BATTLE WINNING N.P. ORGS. Organizational: Governance Mission: Results HIGHER RISK INVESTMENT • Strategy/Theory of Change • Passion • Experience • Persistence • Creativity • Ability to get other s to follow High Performance • • • • • • Data management discipline Constituent feedback Outcome focused intent Relate efforts to outcomes Learn and adjust approach Continuous improvement Capable Leadership • Positive, sustainable change • Independently evaluated LOWER RISK INVESTMENT Impact Financial Financial: Financial Health Health * Inspired by the Alliance for Effective Social Investing
  16. 16. CN’s ROLE IN THE BATTLE CN 1.0 CN 2.0 2002 Financial 2011 Organizational Financial Health Accountability (Governance) & Transparency 2013 – Mission Results Reporting A scalable, in depth, multidimensional charity rating system. THE FUTURE (CN 4.0?): OUTCOME MEASUREMENT
  17. 17. MISSION ACCOUNTABILITY: RESULTS REPORTING 1. Alignment of Mission, Solicitations and Resources 2. Results Logic and Measures 3. Validators 4. Constituent Voice 5. Published Evaluation Reports
  18. 18. BATTLING MYTHS STEP ONE STEP TWO OUTPUT To the Charities of America 18
  19. 19. A BODACIOUS DREAM FOR WINNING THE BATTLE RESULTS STATEMENTS, TODAY TOMORROW 19
  20. 20. ARMING YOURSELF FOR THE BATTLE
  21. 21. BATTLE ACTION STEPS ONCE ARMED
  22. 22. THE NEED FOR LEADERS IN THE BATTLE
  23. 23. TO SUM UP, LET’S DO IT! 23
  24. 24. BATTLE COMMUNICATIONS Email: kberger@charitynavigator.org Blogs: www.kenscommentary.org blog.charitynavigator.org Twitter: kenscommentary Register for Newsletter, Etc.: https://www.charitynavigator.org/index.cfm?b ay=my.login

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