Tag Archives: decision making

Beyond Administrative Costs: A Better Way to Judge a Charity

By Patricia Sinay, Community Investment Strategies 

As a program officer, I can remember the hours of sitting with our grants committee reviewing proposals. It seemed that we always spent a large amount of time reviewing each applicant’s budget and other financial information. How I would have loved to include Jack Shakely’s LA Times editorial, The Worst Way to Judge a Charity, in the committee’s orientation process. 

As Shakely explains, “Low administrative costs could indicate prudence and sound judgment at a charity, but they could just as easily indicate inadequate staffing, insufficient salaries or, shall we say, fudging.” His well thought-out arguments, I am sure, would have helped the grants committee members understand that the numbers do not tell the whole story.

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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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