The document discusses benchmarks for evaluating highly effective charities. It outlines key areas to evaluate such as governance and leadership, administrative operations, financial management, community engagement, and program implementation. Specific questions are provided under each area to help assess the charity's effectiveness, including composition of the board, financial policies, community relationships, and ability to measure social impact. The document also provides resources for learning more about strategic philanthropy and how to integrate it with wealth management.

2. 
Evaluating Charities for Impact
Benchmarks of Highly Effective Charities
Gena Rotstein, FEA, MA
CEO & Advisor in Philanthropy
gena@dexterityconsulting.ca
www.dexterityconsulting.ca
www.place2give.com

3. About DVI and Gena Rotstein

4. Vision
“To make charitable giving a
part of every person’s banking
and financial management
experience and positively
influence $1Billion in
charitable transactions.”

5. Integrating Philanthropy Planning with
Wealth Management
 About Dexterity Ventures Inc. & Gena Rotstein
 Personal and group values shaping charity
evaluation
 Evaluating the Social Impact
 If we have time…Non-traditional "philanthropy“

6. How do I knowWhat Most Needs
Doing?
Benchmarking charities for impact and effectiveness

7. What is Philanthropy?
 Love of mankind
 A financial transaction predicated by moral response to
a social dilemma
 As a phenomenon, philanthropy is actively practiced
throughout the world through voluntarily giving of time,
talent and resources in support of the common good
(Wagner et al, 2003, p 442)

8. What is Strategic Philanthropy?
 The process of identifying what you want to see
society look like, and using philanthropy as one of
the tools for achieving that vision
 The Charitable/Philanthropic Plan is the
coordinated steps in achieving the vision

9. 
Picture Card Activity
Small group acitivty

10. What Most Needs Doing?
Collective Impact
Source: Collective Impact – Kramer, FSG Consulting

11. D-Rev - Mulago Foundation

12.  “Greatness has more to do with how non-profits work outside
the boundaries of their organizations than how they manage
their own internal operations.”
~ Forces for Good
 “High impact non-profits work with and through organizations
and individuals outside themselves to create more impact than
they ever could have achieved alone. They build social
movements and fields, they transform business, government,
other nonprofits, and individuals; and they change the world
around them.”
~ Creating High Impact Non-Profits
What Makes a Great Non-Profit?

13. A Diversified Portfolio to Drive Social
Change
Social
Issue
Investments –
Shareholder
Activism, Private
Equity, Traditional
Philanthropy –
Annual giving,
multi-year
financing
AdvocacyVolunteerism
Vendors/Suppliers

14. Charities & Non-
Profits
Social Investing
Social Return on
Investing
Social
Entrepreneurship
Social Finance
Social Capital
Shared Value
Collective Impact
Social Innovation
Social Impact
Bonds &
Community Impact
Bonds
Patient Capital
Co-Operatives
The Social Profit Sector

15. What Role DoYou Play?
 Donation advisor
 Vetter of options
 Transactional
 Solution creator
 Asset manager (Investment committee)
 Sponsor
 Participant
 Consumer
 Connector

16. Donor Profiling – Creating a
Strategy for Giving
• Leadership
• Program Implementation
• Community Engagement
• Volunteerism/HR
• Governance (policies &
procedures)
• Funding & Financials
Source:
Benchmarks for
Evaluating Charities

17. What to look for?
 Program Implementation
 Capacity to report on long
term effectiveness
 What is success?
 Volunteerism/HR
 Hiring policies
 Staff & Volunteer turn-over
 Financial Management/
Fundraising
 Overhead  Operational
Effectiveness
 Diversified funding portfolio
 Leadership
 Qualifications
 History & Connectedness
 Board engagement
 Governance
 Strategic v. Operational Board
 Policies to protect donors and
clients
 Community Engagement
 How do they work with others in
their industry?
 Media

18. Governance & Leadership
Serve & Advocate What to Evaluate
 Strategic Direction
 Financial Oversight
 Ethical Fundraising
 Policies & Procedures
 The role of the board is to
drive the direction of the
organization, represent
the needs of society, and
steward the donors’
interests

19. Community Engagement
 A community is defined not
only by the geographic but
by those individuals and
groups that are within. A
great charity has strong,
positive relationships within
its defined community.
 Competitive Analysis
“Creating Evangelists”*
*Creating High Impact Non-Profits,
SSIR

20. Program Implementation
 Plan, Execute, Adjust
 How resources are being
allocated in order to
achieve the mission
 How the organization
fosters exploration,
experimentation, growth
and solutions to the
mandated problem.
Effectiveness = Time of your donation + Amount Needed

21. HR/Volunteerism
 A use of human capital
(talent and ties) to offset HR
and admin costs
 Ties financial contribution to
time contributions
 Policies & procedures are
aligned with the values and
mandate of the organization

22. Financial Management
 The last sign of an
organization in crisis is
usually seen in the
financials.
The Canary in the Mine

23. Questions to Ask
Group discussion

24. Governance & Leadership
6. What is the composition of the
board? How long are their terms?
7. Are conflict of interests publicly
stated?
8. Policies & insurance to protect
assets
9. Are conflict of interests publicly
stated (i.e. investments are being
held by the firm of a board
member)?
10. What is the ED evaluation process?
1. What is the strategic direction and
who is managing it (board make-up?
2. Is the board managing the budget &
key financial transactions? (Chair,
Treasurer and CEO different people)
3. Have they filed their annual return
with the IRS or CRA?
4. How often does the board meet?
Do you feel that it is often enough?
GUT CHECK
5. Privacy statement

25. Admin/Operations
What is Good
Management?
 Management team
 Volunteer team
 HR Policies & Procedures
 Shared Leadership
1. Are the right people sitting in
the rights seats on the bus to
drive the operations?
2. Whistleblower policy?
3. Does the salary policy create
a cycle of poverty within the
organization? Is it
competitive with the
marketplace?
4. Is there a business plan?
5. Are the opportunities for
professional development?
6. Are staff appropriately
trained?

26. Financial Management
How do I evaluate Financial
Management?
 Know the marketplace
 Donor Bill of Rights
 Report on Financial Activities
 Investment policies
What are the liabilities?
1. Are there public policies on
expense reimbursements?
2. Who manages the investment
assets? Are all the investments
with one firm/broker?
3. How much of the operating
budget is spent on program
delivery?
4. How long does it take for the
donated funds to “hit the
ground”?
5. Who is doing the fundraising?

27. Community Engagement
How to measure
public perception
 Inspires others to get
involved
 Creating strong networks
with other non-profits
 Strong relationships with
media
1. Which companies have affiliated
their brand with this
organization?
2. What other charities are working
with the organization that you
support to address the issue that
is mandated?
3. How has the organization been
represented in press (unpaid)?
4. Who are the major donors and
how are their donations being
leveraged?
5. How are community members
engaged in the organization?

28. Program Implementation:
Is my money working?
 People
 Capital
 Infrastructure
 Innovation
1. What is the funding ratio (private
foundations – government –
corporate – individual donors –
fee-for-service)?
2. What is your commitment to
investing long-term?
3. What is your commitment to
investing in overhead?
4. What is the process for
measuring success? Does the
organization have the ability to
learn from failure and adjust?
5. What does success mean to you?

29.  Donor Bill of Rights
 Charter of Ethical Fundraising
 Philanthrocapitalism
 Giving 2.0
 Giving Well
 The Art of Giving
 End of Fundraising
 Impact Assets
 Uncharitable
 The Creative Class
 The Blue Sweater
 Soul of a Citizen
 The HIP Investor
 Harvard Business Review, Stanford
Social Innovation Review
 Blogs:
 DexterityConsulting.ca
 Philanthropy.com
 SocialFinance.ca
Resources & Book List

30. Contact information
Gena Rotstein
1-866-936-4483
403-860-7572
grotstein@dexterityventures.com
@Place2Give @DexterityCon
www.dexterityconsulting.ca
www.place2give.com

31. 
Non-Traditional Philanthropy
Social Impact Bonds, Community Impact Bonds, Co-Operatives, Patient Capital

32. For Profit Social Enterprise

33. Village Capital*
 Private equity placement in
local social businesses
 Co-Ops
 Patient Capital
 B-Corps
 Community Economic
Development/Social Biz
Investments (BC, MB, NS)
 L3C’s (US)

34. Crowdfunding: Awesome Foundation
The power of the crowd

35. Micro-Lending