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

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

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

THE DONOR CHALLENGE Slide 5

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

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 information Institutional Funders use a set of standardized NP reports of meaningful information BeneficIaries receive feedback on how their meaningful information was utilized

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

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

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

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

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

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

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

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

Example of Element 1: 16

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

Example of Element 2: 18

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

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

Example of Element 3:

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

Example of Element 4: 23

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

Example of Element 5: adoption/research/read-the-research/technical-report-1/ 25

How Can Your Charity do Well on Results Reporting? 26

1) Clearly Articulate Programs On

2) Read up on our methodology 28

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 29

4) Respond when you receive the survey 30

5) Give us suggestions particular to your cause area 31

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 A DREAM THAT YOU CAN PLAY A ROLE IN MAKING A REALITY RESULTS STATEMENTS, TODAYTOMORROW ?????

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