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Tech Talk Presented by Ken Berger, President & CEO Google New York, NY December 9, 2010

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Charity Navigator is America’s largest and most utilized charity evaluator and has as its mission to be a “guide to intelligent giving”. With a user-friendly searchable database and numerous other online resources, they help millions of charitable donors to give an estimated $10 billion per year in donations, by providing advice and objective ratings of America’s best known charities. Mr. Berger stated that, “Charity Navigator is currently engaged in a project we call CN 2.0 that we believe can completely transform the landscape of charitable giving. Through this effort we intend to deepen and widen our rating system. As a result, we intend to increase the number of donors that use our services which will lead to a sizable increase in giving to higher performing nonprofits. Ultimately we believe this will also lead to a measurable improvement in human welfare and an acceleration in solutions to our most persistent and important societal problems.”

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Page 1: Presentation At Google

Tech Talk

Presented by Ken Berger, President & CEO

GoogleNew York, NY

December 9, 2010

Page 2: Presentation At Google

Your Guide to Intelligent Giving

Where the Heart

Meets the Mind

Page 3: Presentation At Google

Charity Navigator in 30 (more) seconds

Estimated 3.3 million distinct visitors per year (4.7 million hits)

92% say evaluations affected their decision to support individual public charities

CN ratings influence decisions on billions in donations annually

Growth in Website Visits

18,259225,295

661,945

1,240,095

2,707,018

3,488,859

3,856,593 3,761,505

4,719,076

2002 2003 2004 2005 2006 2007 2008 2009 2010

Years

Visito

rs

……

…………

…………

……..

Page 4: Presentation At Google

• Personal Emotional Connection

• Friends Request• Faith Based• Name Recognition• Etc……………..

Why We Give

Page 5: Presentation At Google

(The Nonprofit Marketplace Hewlett Foundation, 2008)

*Includes Charity Navigator- evaluates nonprofits and provides meaningful information.** Includes individuals, foundations, corporations and government funders.

Page 6: Presentation At Google

The Explosive Growth of Nonprofits in the US

Page 7: Presentation At Google

The Problem

Page 8: Presentation At Google

The Solution!: A 3-D View

Page 9: Presentation At Google

QUALITIES OF A HIGH IMPACT ORGANIZATION

Accountability & Transparency

Financial Health

• Positive, sustainable change• Independently evaluatedHIGHER RISK

INVESTMENTLOWER RISK INVESTMENT

Page 10: Presentation At Google

Financial Health

Accountability/Transparency

Results More Comprehensive Rating System

Introducing CN 2.0

Page 11: Presentation At Google

THE EVOLUTION OF CHARITY NAVIGATOR2002 – 2007 - USED IRS DATA (990’S) BECAUSE MANY NONPROFITS DIDN’T LIKE US! IT WAS THE ONLY DATA AVAILABLE FOR META ANALYSIS.

2008 - ANNOUNCED PLANS TO REVAMP RATING SYSTEM TO MOVE TO 3-DIMENSIONAL

2009 - FORMED ADVISORY PANEL

2010 - RECEIVED HEWLETT GRANT TO LAUNCH VOLUNTEER RATING PILOT PROJECT TO SCALE UP.

2010 - PUT OUT A CALL FOR TECH PARTNERSHIPTO HELP US DEVELOP A PLATFORM FOR CN 2,0

2011 – PLAN TO LAUNCH ~$3MM FUNDRAISING CAMPAIGN TO SCALE UP CN 2.0

Page 12: Presentation At Google

CN 2.0 - From One Dimensional to 3-Dimensional

20

40

60

80

100

120

2002

to 201

020

11

2012

& B

eyon

d

% W

eig

ht o

f Rat

ing

Effectiveness/ Results

Accountability/ Transparency

Financial

100%Financial

33.3% Account-Ability/Trans-

parency

+66.6%

Financial

50%Results

+17%

Accountability/Transparency

+33%

Financial

Page 13: Presentation At Google

SCALING UP: 6 Steps to a 3-Dimensional Rating System

July 2010

Accountability &TransparencyMethodology

Launched (achieved)

Fall/Winter 2010

Financial Metrics

Revised (in process)

July 2011

Methodology to Measure Results

Launched (provided adequate funding is secured

to scale up)

Accountability & TransparencyNow Part of Star Rating

(in process)

July 2012

Results Dimension Now Part of Star Rating (assuming data has now been collected for all charities in CN’s database)

July 2013

Incorporation of reviews/data into Results Dimension (e.g.

beneficiary satisfaction, volunteer reviews,expert reviews and independent impact

evaluations.)

1

2

3

4

5

6

Page 14: Presentation At Google

TRANSPARENCY & ACCOUNTABILITY

Page 15: Presentation At Google

15

Source: Hope Consulting, Money for Good, May 2010

Performance (Results) Based Giving Gaps

Page 16: Presentation At Google

RESULTS7 Questions* - 50 Points Total Maximum

*For this prototype, we are using 7 questions devised by Keystone Accountability and New Philanthropy Capital.

QUESTION Max Points

1. What is the charity’s commitment to reporting results? 5

2. How does the charity demonstrate the demand for its services? 3

3. Does the charity report its activities (what it does)? 3

3. Does the charity report its outputs (short term results)? 3

Page 17: Presentation At Google

RESULTS7 Questions - 50 Points Total Maximum

QUESTION Max Points

5. Does the charity report its outcomes (defined as the identifiable differences that it makes through its work)?

10

6. What is the quality of evidence for reported results? 14

7. Does the charity adjust and improve in light of its results? 12

*Prototype for purpose of illustration only and in no way represents the final product.

Page 18: Presentation At Google

EFFECTIVENESS/RESULTS3rd Party Evaluations/Reviews

Weighted score based on quality and rigor of data:

1. Volunteer Reviews2. Primary Constituents Feedback3. Independent Expert Reviews4. Independent In-depth Research and

Analysis

Page 19: Presentation At Google

Charity Navigator Soon to Launch Collaboration with GreatNonprofits

Charity Navigator users will now be able to write and read reviews by Donors, Clients Served, Volunteers, Former Staff, Board Members, General Public

Page 20: Presentation At Google

Donors Can Expand for More Details

GNP REVIEWS TO REPLACE COMMENTS TAB

Page 21: Presentation At Google

The Battle for the Soul of the Nonprofit Sector

Page 22: Presentation At Google

OUR BEST HOPE

• Educated and Engaged Stakeholders are our Best Hope!

Page 23: Presentation At Google

More InformationArticle: “The Battle for the Soul of the Nonprofit

Sector” Berger, Penna and Goldberg, Philadelphia Social Innovation Journal

Books:1. Billions of Drops in Millions of Buckets by

Steve Goldberg2. Money Well Spent by Paul Brest, et. alWeb Sites1. www.alleffective .org2. www.keystoneaccountability.org3. www.WhatWorks.orgVideo: www.savingphilanthropy.org

Page 24: Presentation At Google

Your Questions & Our Web Addresses

Website- www.charitynavigator.org

Blogs- www.kenscommentary.org

blog.charitynavigator.org

Twitter- kenscommentary