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

Your Guide to Intelligent Giving

Where the Heart

Meets the Mind

Critical Friend to Charities

3

UNSEEN BATTLE LINES BEING DRAWN …

What is the greatest battle facing the charitable sector?

TOO MANYNONPROFITS?

DWINDLING FUNDING?

LOW CEO SALARIES& LOW OVERHEAD?

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

TODAY: THE NP WITH THE BEST MARKETING WINS

WHO HAS THE $ TO DO THE BEST MARKETING?

8

DIRTY LAUNDRY FOR MEDIA CO-CONSPIRATORS

9

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.

10

THE POLITICS OF GOVERNMENT FUNDING

11

PIED PIPERS FOR NO REAL ACCOUNTABILITY

SCHAMBRA PALLOTTA

12

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)

(The Nonprofit Marketplace Hewlett Foundation, 2008)

THE WINNING BATTLE PLAN

14

MEASURING AND REPORTING ON WHAT?

ACCOUNTABILITY!

1)FINANCIAL

2)ORGANIZATIONAL

3)MISSION

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

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

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

18

BATTLING MYTHS

OUTPUT

To the Charities of America

STEP ONE STEP TWO

19

HOPEFUL SIGNS OF A TURNING POINT IN THE BATTLE

• FUNDER EFFORTS

• GOVERNMENT EFFORTS

• MEDIA EFFORTS

• THOUGHT LEADER EFFORTS

• NP LEADER EARLY ADOPTERS

20

A BODACIOUS DREAM FOR WINNING THE BATTLE

RESULTS STATEMENTS,

TODAY TOMORROW

THE NEED FOR LEADERS IN THE BATTLE

ARMING YOURSELF FOR THE BATTLE

BATTLE ACTION STEPS ONCE ARMED

Email: kberger@charitynavigator.org

Blogs:

www.kenscommentary.org

blog.charitynavigator.org

Twitter: kenscommentary

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

BATTLE COMMUNICATIONS