afp westchester npd 2013 keynote ken berger the battle for the future of the nonprofit sector

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The Battle for the Soul of the Nonprofit Sector Presentation at Being Good at Doing Good 2012 Conference Ken Berger, President & CEO Charity Navigator February 13, 2012

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Ken Berger, President & CEO of Charity Navigator, will discuss why he believes we are at a critical crossroads in the Nonprofit Sector. He will review current challenges facing the sector and the forces that he believes are aligned against each other in a battle that will determine the sector's future. He will also provide the outlines for his vision for how the battle can be won so the nonprofit sector can be doing its utmost to help the greatest number of people and communities in the most meaningful and lasting way.

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Page 1: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

The Battle for the Soul of the Nonprofit Sector

Presentation atBeing Good at Doing Good 2012 Conference

Ken Berger, President & CEOCharity NavigatorFebruary 13, 2012

Page 2: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

Your Guide to Intelligent Giving

Where the Heart

Meets the Mind

Critical Friend to Charities

Page 3: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

3

UNSEEN BATTLE LINES BEING DRAWN …

Page 4: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

What is the greatest battle facing the charitable sector?

TOO MANYNONPROFITS?

DWINDLING FUNDING?

LOW CEO SALARIES& LOW OVERHEAD?

Page 5: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

The Core of the Battle 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

Page 6: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

TODAY: THE NP WITH THE BEST MARKETING WINS

Page 7: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

WHO HAS THE $ TO DO THE BEST MARKETING?

Page 8: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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DIRTY LAUNDRY FOR MEDIA CO-CONSPIRATORS

Page 9: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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THE GRANTMAKING CIRCUS:FOUNDATIONS HAVE A SIMILAR CONCENTRATION

According to the Foundation Center …, private grant-making foundations in the United States numbered 73,764, only 1,293 of them (1.8 percent) had assets of $50 million or more.

Page 10: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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THE POLITICS OF GOVERNMENT FUNDING

Page 11: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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PIED PIPERS FOR NO REAL ACCOUNTABILITY

SCHAMBRA PALLOTTA

Page 12: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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OTHER OBSTACLES TO SURMOUNT

• A Fear of Fallout from Potential Criticism• It’s All About the Work• Performance Measures are Reductionistic • Lack of Resources• Disengaged Boards• Donor Indifference• The Growth Motive• Inadequate Monitoring (Internal & External)

Page 13: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

(The Nonprofit Marketplace Hewlett Foundation, 2008)

THE WINNING BATTLE PLAN

Page 14: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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MEASURING AND REPORTING ON WHAT?

ACCOUNTABILITY!

1)FINANCIAL

2)ORGANIZATIONAL

3)MISSION

Page 15: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

QUALITIES OF BATTLE WINNING 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

INVESTMENTLOWER RISK INVESTMENT

* Inspired by the Alliance for Effective Social Investing

Mission: Results

Organizational: Governance

Financial: Financial Health

Page 16: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

Financial Health

Accountability

(Governance) &

Transparency

Results Reporting

A scalable, in depth, multi-dimensional charity rating system.

CN 2.02011 -

Organizational

CN 1.02002 -

Financial

CN’s ROLE IN THE BATTLE

THE FUTURE (CN 4.0?): OUTCOME MEASUREMENT

2013 – Mission

Page 17: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

MISSION ACCOUNTABILITY: RESULTS REPORTING

1. Alignment of Mission, Solicitations and Resources

2. Results Logic and Measures

3. Validators

4. Constituent Voice

5. Published Evaluation Reports

Page 18: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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BATTLING MYTHS

OUTPUT

To the Charities of America

STEP ONE STEP TWO

Page 19: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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HOPEFUL SIGNS OF A TURNING POINT IN THE BATTLE

• FUNDER EFFORTS

• GOVERNMENT EFFORTS

• MEDIA EFFORTS

• THOUGHT LEADER EFFORTS

• NP LEADER EARLY ADOPTERS

Page 20: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

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A BODACIOUS DREAM FOR WINNING THE BATTLE

RESULTS STATEMENTS,

TODAY TOMORROW

Page 21: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

THE NEED FOR LEADERS IN THE BATTLE

Page 22: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

ARMING YOURSELF FOR THE BATTLE

Page 23: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

BATTLE ACTION STEPS ONCE ARMED

Page 24: AFP Westchester NPD 2013 Keynote Ken Berger The Battle for the Future of the Nonprofit Sector

Email: [email protected]

Blogs:

www.kenscommentary.org

blog.charitynavigator.org

Twitter: kenscommentary

Register for Newsletter, Etc.: https://www.charitynavigator.org/index.cfm?bay=my.login

BATTLE COMMUNICATIONS