Tag Archives: data

The Challenge of Measuring What Matters Most

By Ken Berger, Charity Navigator

Four years ago when I began working at Charity Navigator, I went on a “listening tour” to see what concerned experts in the field about our rating system. The fundamental concern expressed by many was that we were not factoring in what matters most: the results (especially outcomes) of the work of the charities we analyze. That feedback, among other things, led us to make a commitment to upgrade our rating system over time in the direction they had counseled.

After a few years of research, funded by one large and a number of small foundations, we came to the conclusion that there is a fundamental problem with the experts’ suggestion. Essentially, for the vast majority of charitable causes, there is no publically available information on results. In other words, most charities either do not currently compile such information or if they do, they are unwilling to share it publically.

The traditional nonprofit culture is to not make waves (unless you are an advocacy organization) and keep a low profile. Nonprofits don’t want to give stakeholders any reason to weaken their trust in them. Nor do they want to give competitors any leg up by learning sensitive information about the vulnerabilities of internal operations. Therefore, the increasing emphasis on transparency about performance is resisted by many.

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Foundation Salary and Benefits Data Prompts Conversation

By Kathryn Petrillo-Smith, ASF

Today ASF releases its 2012 Foundation Salary and Benefits Report. Every year, this is one of our most popular reports. Why? For a couple reasons: some obvious and some, perhaps, not so obvious.

First, the obvious. For foundations with few or no staff and/or $200 million or less in assets, it is the best source of readily available benchmarking data. With comparisons by asset size of <$1 million, $1-4.9 million, 5-9.9 million, 10-24.9 million, 25-49.4 million, and 50 million and up, the data is tailored for smaller foundations. Add in geographic breakouts and data at a range of percentiles, and a foundation leader can develop a compensation benchmark that is powerful and relevant.

Second, the not so obvious. The real power behind the data is the conversations the data can prompt between trustees and staff. Use this as an opportunity to discuss not just what benchmarks you have selected but how you came to select them. For example:

  • What are your foundation’s executive director’s responsibilities and priorities over the coming year?
  • Are they changing or continuing on a steady course?
  • Is he or she being asked to take on a new project or initiative?
  • Is your foundation’s grantmaking more complicated than the average foundation? 

Using the data as a starting point can be an effective way to begin what can be difficult and often very personal conversations. But, these conversations can also be incredibly powerful – helping everyone to align their expectations for the coming year and creating a shared understanding of desired outcomes. 

How does your foundation use salary and benefits data? What conversations has data helped you to start?

ASF’s Foundation Salary and Benefits Report is released each year in late spring. ASF members can download the report for free. Non-members can purchase the report as a supplement to the 2011 Foundation Operations and Management Report. The 2012 Foundation Salary and Benefits report was made possible, in part, by the support of U.S. Trust, Bank of America Private Wealth Management.

Kathryn Petrillo-Smith

Kathryn Petrillo-Smith is ASF’s Managing Director. In this role, Kathryn is a member of ASF’s senior leadership team and works to align ASF’s operations with its strategy. Kathryn oversees ASF’s Member Services, Membership, Marketing & Communications, and Operations teams and its financial management.

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Using Data to Inform Donor Decisions: Reflections from GuideStar President

By Henry Berman, ASF

How does your foundation decide which organizations to fund?

“I think increasingly our decisions are going to focus on capabilities,” said Bob Ottenhoff, president of GuideStar, in ASF’s newest podcast Reflections: 10 Years in the Nonprofit Sector.

Do you agree? Disagree?

Bob went on to comment on how donors might inquire about nonprofit capabilities:

“Are you really capable, nonprofit organization, of doing what you say you want to do? Because I, as a donor, have certain expectations and…  I really want to make an impact on this cause, and so I’m looking for partners, nonprofit partners, who can help me make a difference in this area. And so I want to make sure that if you’re going to be my partner, nonprofit organization, you can really deliver.”

So that means learning a little bit more about the board, learning a little bit more about the management expertise, learning about the programs of the organization, learning about how they’re doing. How are they doing in achieving those goals?

Download the free podcast from the ASF Store. You’ll also find a two-part conversation with Tom Tierney, co-author with Joel Fleishman of Give Smart: Philanthropy That Gets Results.

Take a listen. Let us hear what you think.

Henry Berman

Henry Berman became ASF’s CEO in 2011, previously serving as acting CEO, board member, and committee member. Through his experience as a foundation co-trustee and ASF member since 2003, he brings a firsthand understanding of the needs of ASF members to his role. Berman’s early career included positions as an independent communications consultant and director, writer, and producer of film, video, and multimedia programs for education, motivation, and fundraising.

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