This document summarizes a Charity Navigator masterclass session on understanding the Culture and Community beacon. It provides an overview of how Charity Navigator evaluates an organization's culture, community engagement, equity and feedback practices. Studies are presented showing the importance of these factors to donors and nonprofit effectiveness. The beacon criteria around how organizations listen to constituents, commit to equity and diversity are explained. The importance of the Culture and Community beacon in providing a holistic evaluation and informing donor decisions is highlighted. Participants are invited to ask questions in a Q&A session.
3. Our mission: Make governance simple, effective, and secure
Helping nonprofits simplify governance
so they can focus on their mission and
accelerate their impact
● Making board meetings informed, seamless, and uncomplicated
● Transforming board collaboration and communication
● Innovating every day to empower modern boards
Helping today’s leaders create a better world
About OnBoard
4. Our mission: Make impactful giving easier for all
Helping people turn their values,
passions, and beliefs into meaningful
change and impact
● Providing the data, ratings, and advice that cut through the noise
● Supporting donors to make informed choices that turn intent into action
● Partnering with nonprofits to define strategic objectives that matter
Building a bridge of trust for all to cross
About Charity Navigator
5. Help nonprofit boards & executives understand the importance
of equity and feedback practices
Today’s Goals
Provide a deeper understanding of the Culture & Community
Beacon’s methodology and scoring criteria
Offer tips and best practices for effectively engaging with your
Culture & Community rating
6. A Quick Poll
Are you a board member or a nonprofit leader?
1. Board Member
2. Nonprofit Leader
3. Just interested
7. Who uses Charity Navigator?
Small individual
donors
Every day donors who want
to make sure they are giving
to an effective, impactful &
trustworthy organization
“I will not donate to a charity
unless they receive a 3 or 4 star
on Charity Navigator”
- Debbie who gives $5-10K per
year
Foundations and
grant makers
Foundations of all sizes use
Charity Navigator as an
initial due diligence screen
“We use Charity Navigator as
an initial screening tool when
reviewing applications- if they
are not a 3 or 4 star charity,
they don’t move on”
- Foundation Program Officer
Institutional DAFs
Use it when researching
recommendations for high
net worth philanthropists
“I provide giving
recommendations to high net
worth individuals. A lot of my
research is on Charity
Navigator”
- DAF advisor
8. Our Ratings
Drawing from a knowledge base of research, analysis,
and constituent feedback, our team develops ratings that
are both analytical and responsive to the data needs of
our site users.
Eligible charities receive a zero to four-star star rating —
this is determined by the weighted sum of the
organization’s individual beacon scores (0-100).
9. Providing Guidance Through Beacons
Our Encompass Rating System provides a comprehensive
analysis of charity performance across four key domains, which
we call "beacons."
Nonprofit Effectiveness
10. Understanding A Charity Rating: What does it mean?
This is a four-star charity with
a 93% overall rating
They have earned two beacons:
- Accountability & Finance
(90%)
- Leadership &Adaptability
(10%)
These individual beacon scores
are combined* to create the
aggregate score.
Incomplete beacons are
“unscored”
This is a four-star charity
with a 100% overall rating
They have earned four beacons:
- Accountability & Finance
(32.5%)
- Leadership &Adaptability
(7.5%)
- Impact & Results (50%)
- Culture & Community
(10%)
These individual beacon scores
are combined* to create the
aggregate score
*We use a weighted average to of beacon scores to create the overall numeric
score. The weighting is based on the number of beacons earned. The weights are in
parenthesis.
Pro-Tip: 80% of donors say that they would rather donate to a
“complete” rating than one with just 1 or 2 beacons, even if it is a
lower overall score.
11. What is the Culture and Community Beacon?
● We assess charities' overall culture and connectedness to the
constituents and community they serve.
● We gain insight into an organization’s Culture and Community by:
○ How they Listen to their constituents and utilize the feedback
collected to foster impactful programs and services
○ Diverse, inclusive, and equitable workplace culture.
● Positive organizational health and strong engagement with the
charity's constituent populations are critical to the implementation of
high-quality and impactful programs.
13. The Stanford Social Innovation Review
A study indicated that most donors see direct
feedback from beneficiaries as an essential
metric when determining where to allocate
their donations. The perceived effectiveness
of an organization significantly increases
when donors believe the charity is in tune
with those it aims to serve.
https://ssir.org/articles/entry/how_impact_data_changes_the_way_donors_give
14. The Center for Effective Philanthropy (CEP) Study
Their research highlighted that donors
consider feedback from beneficiaries as a
crucial measure of nonprofit performance.
They found that nonprofits that scored
higher on beneficiary feedback metrics
tended to have more substantial financial
support from donors.
https://cep.org/portfolio/hearing-from-those-we-seek-to-help-nonprofit-practices-and-perspectives-in-beneficiary-feedback/
15. Feedback Labs Data
Research from Feedback Labs showed that
organizations which actively engage in feedback
loops with their constituents are viewed as more
transparent and trustworthy. Donors tend to favor
transparency as it provides clear insight into how
their donations are used and the real-world
impact they have.
https://feedbacklabs.org/
19. Why do nonprofits share via How We Listen?
“Because it’s good to showcase how we care for our
folks, our clients … how we are invested in making
an effort to listen and to adapt to what they need.”
- Jane Morrison, Mosaic Forum
22. McKinsey & Company
This study builds upon earlier
McKinsey reports from 2015 and
2018. The latest iteration provides
more evidence that companies
with greater diversity in their
workforce are likely to have
superior financial performance.
https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters
23. Pew Research Center
This comprehensive report delves into
public attitudes about gender and
leadership, highlighting the values and
advantages brought by gender diversity
in leadership positions.
"Most Americans find women
indistinguishable from men on key
leadership traits, yet women still make
up a small share of top leadership jobs."
https://www.pewresearch.org/social-trends/2018/09/20/women-and-leadership-2018/
24. Deloitte
This report underscores the eight powerful
truths that define the path to a more inclusive
future, emphasizing the tangible business
benefits of EDI initiatives.
"Organizations with inclusive cultures are
twice as likely to meet or exceed financial
targets, three times as likely to be
high-performing, six times more likely to be
innovative and agile, and eight times more
likely to achieve better business outcomes."
https://www2.deloitte.com/content/dam/insights/us/articles/4209_Diversity-and-inclusion-revolution/DI_Diversity-and-inclusion-revolution.pdf
25. Harvard Business Review
HBR has published numerous
articles and case studies on the
topic, demonstrating the benefits of
diversity on team creativity,
resilience, and decision-making.
"Inclusive teams make better
business decisions up to 87% of
the time."
https://www2.deloitte.com/content/dam/insights/us/articles/4209_Diversity-and-inclusion-revolution/DI_Diversity-and-inclusion-revolution.pdf
26. Boston Consulting Group
This study shows that diverse companies are
better innovators and thus produce more
revenue from new products.
"Companies that reported above-average
diversity on their management teams also
reported innovation revenue that was 19
percentage points higher than that of
companies with below-average leadership
diversity."
https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation
27. Catalyst
Catalyst, a global nonprofit, focuses on
advancing women into leadership. They've
produced a host of resources illustrating the
advantages of a diverse and inclusive
workplace.
"Companies with more women in
decision-making roles are 27% more likely to
outperform their peers on key composite
measures of profitability."
https://www.catalyst.org/research/why-diversity-and-inclusion-matter/
28. PolicyLink and FSG
This report outlines how companies
can gain a competitive edge by
advancing racial equity.
"Advancing racial equity can
increase economic output by over
$2 trillion per year."
https://www.fsg.org/resource/competitive-advantage-racial-equity/
29. We score on an organization's Commitment to Equity
30. We score on an organization's Commitment to Equity
Data
● We review compensation data across the organization (and by staff levels) to identify disparities
by race.
● We ask team members to identify racial disparities in their programs and/or portfolios.
● We analyze disaggregated data and root causes of race disparities that impact the organization's
programs, portfolios, and the populations served.
● We disaggregate data to adjust programming goals to keep pace with changing needs of the
communities we support.
● We employ non-traditional ways of gathering feedback on programs and trainings, which may
include interviews, roundtables, and external reviews with/by community stakeholders.
● We disaggregate data by demographics, including race, in every policy and program measured
● We have long-term strategic plans and measurable goals for creating a culture such that one’s
race identity has no influence on how they fare within the organization.
31. We score on an organization's Commitment to Equity
Policies
● We use a vetting process to identify vendors and partners that share our commitment to race equity.
● We have a promotion process that anticipates and mitigates implicit and explicit biases about people of
color serving in leadership positions
● We seek individuals from various race backgrounds for board and executive director/CEO positions
within our organization.
● We have community representation at the board level, either on the board itself or through a
community advisory board.
● We help senior leadership understand how to be inclusive leaders with learning approaches that
emphasize reflection, iteration, and adaptability.
● We measure and then disaggregate job satisfaction and retention data by race, function, level,
and/or team.
● We engage everyone, from the board to staff levels of the organization, in race equity work and
ensure that individuals understand their roles in creating culture such that one’s race identity has no
influence on how they fare within the organization.
32. Culture and Community Beacons, Why it is important.
● Holistic Evaluation
○ Goes beyond just financial metrics to offer a comprehensive view of a nonprofit's
performance.
● Transparency and Trust
○ Encourages organizations to be open about their cultural and community impact,
fostering trust among donors and stakeholders.
● Promotion of Equity, Diversity, and Inclusion
○ Reflects the growing awareness and importance of EDI in organizational health
and effectiveness.
● Recognizes Community Engagement
○ Highlights organizations that go above and beyond to engage with and support
the communities they serve.
33. Culture and Community Beacons, Why it is important.
● Encourages Continuous Improvement
○ Nonprofits can identify areas of strength and areas for growth, driving them to continuously
improve their impact.
● Informs Donor Decisions
○ Provides donors with a more rounded perspective, ensuring their contributions align with their
values and go to organizations that are truly making a difference.
● Sets Industry Standards
○ Establishes benchmarks and best practices, raising the bar for nonprofits across the board.
● Relevance in a Changing World
○ We are addressing contemporary issues and evolving societal values.
● Essential for the Future
● As the nonprofit landscape evolves, the Culture and Community Beacons rating will be pivotal in
guiding organizations toward impactful, equitable, and community-centric practices.
35. The Charity Navigator
Masterclass
Presented by OnBoard x Charity Navigator
Session 3: Leadership &Adaptability Beacon | Oct. 3 @ 2pm ET
Session 4: Impact & Results Beacon | Oct. 20 @ 2pm ET
Sign Up Now!
An exclusive four part series that explores how
and why Charity Navigator rates nonprofits,
covers each Charity Navigator Beacon in detail.
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