Charity Ratings Suffer a Blow

on blackboardThe William and Flora Hewlett Foundation announced today that their eight-year, $12 million effort to support the “effective philanthropy” movement did not achieve its goals. This effort aimed to persuade individual donors to give greater consideration to financial and short-term metrics; it also de-emphasized harder to measure impact such as influence on social and political change, hope and joy, mitigation of pain and suffering, and even donor satisfaction. The foundation admitted that while the effort “succeeded at producing more information about charity performance [think Charity Navigator and Give Well], it did little to change donors’ decisions: They continued to give with their hearts, not their heads.” Commenting on the news, Jan Masaoka, Executive Director of California Association of Nonprofits explained that using Charity Navigator and other simplistic ratings never was “using your head.” She said, “Your head ought to tell you that unproven, inaccurately calculated metrics for the wrong things are an un-smart ways to choose where to donate.” To be clear, I always review nonprofit tax returns available online at Guidestar when performing due diligence. But given the large number of worthy charities that have been unfairly tarnished by simplistic assessments, and the misconceptions these ratings have fostered, I am relieved that the research about their inefficacy is now available and being acted upon.

Make Giving a Family Tradition

Melanie Hamburger, Founder of Catalytic Women has just published a free giving guide, “How to Make Giving a Family Tradition” that I hope you will enjoy and share with others. It’s a terrific resource, created with the invaluable input of Lisa Parker, founder of Family Circle Advisors, the Center for High Impact Philanthropy at the School of Social Policy and Practice, University of Pennsylvania, and Hope Neighbor, Founder of Hope Consulting. Hope, Lisa and I are all members of Catalytic Women advisory board. What a blessing it is for me to work with such thoughtful women! Many thanks to Melanie for creating and freely sharing the 2012 Giving Guide.