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ACCOUNTABILITY & TRANSPARENCY:
More Than Good Intentions
Presentation atCharity Review Council Annual Forum
Ken Berger, President & CEO
June 15, 2010
IN THE BEGINNING
~30 Years Doing “the Work”
IN MY HEAD I KEPT THINKING
Tales of the Dark Side
• The Scoundrel – Use everyone and take whatever you can.
• The Thief – “We’re smart, so let’s make money”.
• The Hanger On – Money for nothing.
WHY?
The Explosive Growth of Nonprofits in the US
$1.9 Trillion in Public Charity Revenues
~1.9 million Nonprofits
61% (1.2 million) are Public Charities (PCs)
*6% of PCs get 96% of Revenues = $1.86 million
**.2% of PCs get 59% of Revenues = $1.5 Trillion
* Houses of Worship do not file w/IRS regardless of size
**94% of PCs spend 4% of the revenues - $79 million
Accountability & Transparency
QUALITIES OF A HIGH IMPACT ORGANIZATION
Accountability & Transparency
Financial Health
• Positive, sustainable change• Independently evaluatedHIGHER RISK
INVESTMENTLOWER RISK INVESTMENT
Financial Health
Accountability/Transparency
Effectiveness/Results
More Comprehensive Rating System
Introducing CN 2.0
Accountability & Transparency: IRS 990 Reporting Form Info.
Acountability & Transparency: Web Site Information
More on WebDoes the charity web site have readily
accessible information about the following:
• Its goals and objectives?• Its strategies for achieving them?• Its capacity for achieving them?• How it measures progress in achieving them?• What its measurements indicate about progress to date?
The Battle for the Soul of the Nonprofit Sector
More Information
Articles: in Philadelphia Journal of Social Innovation1. “The End of Charity” by David Hunter 2. “The Battle for the Soul of the NP Sector” by Berger, Penna and Goldberg
Book: Billions of Drops in Millions of Buckets: Why Philanthropy Doesn’t Advance Social Progress by Steve Goldberg
Web Sites1. www.alleffective .org2. Google: Nonprofit Effectiveness, Independent Sector3. www. WhatWorks.org
Video: www.savingphilanthropy.org
Your Questions and Our Web Addresses
Website- www.charitynavigator.org
Blogs- www.kenscommentary.org
blog.charitynavigator.org
Twitter- kenscommentary