This presentation covers the current challenges facing nonprofits as they relate to "ratings." Questions such as what is "results reporting," what is "financial health and governance"? are also covered.

1. Sponsored/Hosted by:

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

3. What is the greatest challenge facing the nonprofit sector?
TOO MANY
NONPROFITS?
DWINDLING
FUNDING?
LOW CEO SALARIES
& LOW OVERHEAD?

4. The Core Challenge 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

5. THE DONOR CHALLENGE
Slide 5

6. Why Results?
• Results are becoming the new
language of the sector
• An increasing number of donors
are asking for this information
• Having measurable results will
put your organization in a better
position to meet your mission
and increase funding 6

7. The Nonprofit
Marketplace
Hewlett Fdn,
THE ROADMAP TO A SOLUTION TO THE CHALLENGES
INSTITUTIONAL
FUNDERS
supply $ &
technical
assistance for
meaningful
information
BENEFIC-
IARIES
are engaged
&
empowered
to provide
meaningful
informationInstitutional
Funders use
a set of
standardized
NP reports
of meaningful
information
BeneficIaries
receive
feedback on
how their
meaningful
information
was utilized

8. 8
WHAT IS MEANINGFUL INFORMATION FOR MEASURING
A CHARITY’S PERFORMANCE AND ACCOUNTABILITY?
RESULTS
GOVERNANCE
FINANCIAL
HEALTH

9. How Does this fit into the Evolution of our
Rating System?
• CN 1.0 – Financial Health
Launched in 2002 with 1,100 charities
• CN 2.0 – Governance
Launched Sept 20, 2011 with 5,500
charities
• CN 3.0 – Results Reporting
Methodology released and data collection
begun Jan 2013, with a goal of 10,000
charities rated by end of 2016. 9

10. Dispelling the Myth:
Charity Navigator’s Results Reporting
Requirements Are Not…
• An assessment of your results
• A comparison of your specific results or metrics against
other charities
• A complex and lengthy set of metrics
• An evaluation system that requires your organization to
meet all standards to get a high rating
10

11. Results Reporting Is…
• An assessment of how charities use their results internally
and share them with stakeholders, including donors
• We are looking to see that you are reporting on results
measures, and showing how your organization learns and
improves based on those measures (i.e. learning and
improving over time is more important than a ‘snapshot’ of
results)
11

12. When Will This Impact Your Rating?
Not Anytime Soon!
• As we collect the data, we will present it for informational
purposes.
• Will not impact star ratings until we have the data for
10,000 charities and have developed a scoring system.
12

13. But, Don’t Wait.
NOW is the Time to Start
So your charity isn’t empty handed when Charity
Navigator gets to the finish line.
13

14. Results Reporting
1. Alignment of Mission, Solicitations
and Resources
2. Results Logic and Measures
3. Validators
4. Constituent Voice
5. Published Evaluation Reports 14

15. However, One Item Will Impact Your Rating
Next Year
Element One:
Alignment of Mission, Solicitations and Resources
15

16. Example of Element 1:
http://www.hcz.org/about-us/the-hcz-project
16

17. Element Two:
Results Logic and Measures
• Is the organization’s causal logic, theory of change,
plausible?
• If applicable, is there an indication of how much of the
action is required to produce the pre-defined outputs and
outcomes?
• Is this logic based on reasonable evidence?
• Are there specified measures (indicators) to be collected
and a plan to do so? 17

18. Example of Element 2:
http://girlscoutsnca.org/programs/
18

19. 19
LEVEL ONE RESULTS REPORTING IS OUR PRIMARY FOCUS
NESTA: STANDARDS
OF EVIDENCE

20. Element Three: Validators
• Have your charity’s results been vetted by another
organization?
• Not every charity and cause area will have a validator.
That will not diminish your rating.
20

21. Example of Element 3:
http://toptierevidence.org/
http://www.smartgivers.org/
http://coanet.org/
21

22. Element Four: Constituent Voice
• How well does your charity collect and publish
feedback from your primary constituents (the
people who are meant to be the direct recipients of
benefits created by the organization’s actions.)
• May not apply to every cause area, but will apply to
most.
22

23. Example of Element 4:
http://www.girlsontherun.org/What-We-Do/Evaluations
23

24. Element Five:
Published Evaluation Reports
• Does your charity publish evaluation reports that cover
the results of its programs at least every five years?
• Are those reports based on recognized techniques to
understand your results?
• Does you charity explain what, if anything, it is changing
as a result of the findings in the evaluation report?
24

25. Example of Element 5:
https://www.davethomasfoundation.org/about-foster-care-
adoption/research/read-the-research/technical-report-1/
25

26. How Can Your Charity
do Well on Results
Reporting?
26

27. 1) Clearly Articulate Programs On 990
27

28. 2) Read up on our methodology
28

29. 3) Have a Registered Representative with us
Benefits
 Suggest basic info updates: contact, mission, tag line
 4-star charities: logos, promotional tools
 Post a comment
 Notify CN about improvements to A&T data
See our blog for more details & instructions on how to sign up http://goo.gl/2fI7RZ 29

30. 4) Respond when you receive the survey
30

31. 5) Give us suggestions particular to your cause area
31

32. 32
6) Learn more with these resources
Books /Articles/ Studies
1. The Battle for the Soul of the Nonprofit Sector , Berger, Penna and Goldberg,
Philadelphia Social Innovation Journal
2. Money Well Spent by Paul Brest, et. Al
3. Working Hard and Working Well, by David E. K. Hunter
4. Billions of Drops in Millions of Buckets by Goldberg
5. Leap of Reason by Mario Marino
6. The Nonprofit Outcome Toolbox by Dr. Robert Penna
7. Charity Navigator’s webinar on how to use our site
8. Saving Philanthropy Video
9. Independent Sector’s Charting Impact
10. PerformWell Web Site

33. 33
A DREAM THAT YOU CAN PLAY A ROLE IN MAKING A REALITY
RESULTS STATEMENTS,
TODAY TOMORROW
?????

34. Email: kberger@charitynavigator.org
Blogs:
www.kenscommentary.org
blog.charitynavigator.org
Twitter: kenscommentary
LinkedIn: http://lnkd.in/jKeK5U
Register for Newsletter, Etc.:
https://www.charitynavigator.org/index.cfm?bay=my.login
KEEPING IN TOUCH