This document outlines problems in the nonprofit sector and proposes solutions to increase accountability and transparency. It discusses issues like a lack of evidence that nonprofits create social value, individual donors not having enough information, and funders and beneficiaries having problems. The document's proposed solution is a multi-dimensional charity rating system called CN that evaluates nonprofits on financial health, accountability/governance, and results reporting to help donors give more intelligently. It suggests resources and actions steps for nonprofits to address accountability.

2. Your Guide
to
Intelligent
Giving
Where the
Heart
Meets the
Mind
Critical Friend to Charities

3. The Nonprofit Sector Problem*
“… 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

4. THE INDIVIDUAL DONOR PROBLEM
Slide 4

5. 5
THE INSTITUTIONAL FUNDER PROBLEM

6. 6
THE BENEFICIARY PROBLEM

7. (The Nonprofit
Marketplace
Hewlett Foundation,
2008)
THE PROBLEM SOLVED

8. 8
OUR DEFINITIONS OF ACCOUNTABILITY &
TRANSPARENCY
ACCOUNTABILITY - is an obligation or willingness
by an organization to explain its actions to its
stakeholders.
1)FINANCIAL - to safeguard and manage the
organization’s financial resources.
2)ORGANIZATIONAL – to consistently follow rules of
governance and operational process.
3)MISSION – to set goals and then measure and
manage performance to assure the organization is
achieving meaningful results.
TRANSPARENCY - an obligation or willingness by an
organization to publish and make available critical
accountability data about the organization.

9. QUALITIES OF ACCOUNTABILITY IN N.P. ORGS.
Financial Health
• Strategy/Theory of Change
•Passion
•Experience
•Persistence
• Creativity
• Ability to get other s to follow
Capable
Leadership
• Data management discipline
• Constituent feedback
• Outcome focused intent
• Relate efforts to outcomes
• Learn and adjust approach
• Continuous improvement
High
Performance
Impact
• Positive, sustainable
change
• Independently
evaluatedHIGHER RISK
INVESTMENT
LOWER RISK
INVESTMENT
* Inspired by the Alliance for Effective Social Investing
Mission: Results
Organizational: Governance
Financial: Financial Health

10. Financial
Health
Accountability
(Governance)
&
Transparency
Results
Reporting
A scalable, in
depth, multi-
dimensional
charity rating
system.
CN 2.0
2011 -
Organizational
CN 1.0
2002 -
Financial
FROM ACCOUNTABILITY IN ONE
DIMENSION TO THREE AND BEYOND
THE FUTURE (CN 4.0?):
OUTCOME MEASUREMENT
2013 –
Mission

11. A CHARITY HELPING CHARITIES SOLVE THE PROBLEM

12. Recommended Resources

13. Recommended Action Steps