The Rundown - December 9, 2022: How We Evaluate Charities
Effectiveness, like beauty, is often in the eye of the beholder and sometimes, we need a better pair of glasses.
A Vacation Read
Last week, when I was on vacation, I read this opinion piece by Evan Feinberg in the USA Today that talked about how we evaluate charities. Our good readers might be happy to know that I did not read this sitting on the beach cutting into time with the family, rather I was watching a load of beach towels tumble in the dryer and frankly had nothing else better to do at the laundromat.
The opinion piece opens up with the age old question that has been dogging the nonprofit and philanthropic sectors since the beginning of time, “How do we know we are good at what we do?” Since the dawn of scientific management back in the early 20th Century, there has been a push for for-profits and non-profits to effectively measure their effectiveness. This is often done in rudimentary fashion that treats beneficiaries in a uniform fashion and tries to achieve the lowest unit cost possible. It’s great when a soup kitchen can tell funders, “It only costs us X cents per meal! Imagine how many people we can serve with your donation!”
What we have learned is that our donors are becoming more and more savvy. They have access to more information about our organizations and rating systems like CharityNavigator present publicly-available information about our agencies in a format that is widely available and easy to read. The good folks at CharityNavigator have even gone to great lengths to give us grades on our work. Those top-notch shops get the four star rating. Less than desirable organizations get one star or even placed on their “Watchlist”.
But as Feinberg points out, there is more to the story. A production-based metric isn’t necessarily the best way to measure the effectiveness in the sector. Without coming out and saying it, he confronts the nonprofit leader with the logic model approach to nonprofit management; are we more interested in outputs or outcomes?
The CharityNavigators of the world are clearly more interested in outputs. And who can blame them? Without a doubt, outputs are easier to measure and easier to compare from shop to shop. They can be measured over a short period of time. And while outputs aren’t the end all, be all of nonprofit evaluation, they can at least lead us to better outcomes, right? I mean, if we have more outputs that are better, the odds of us having more outcomes that are better must be improved? It’s a logical argument.
What’s the nonprofit to do?
Anyone in the nonprofit space that has ever had to raise a buck fundamentally understands that our donors aren’t moved by numbers - they are moved by stories. They want to know about the family who has an improved life thanks to our work. They want to hear about the young mom who got out of poverty or the lost man who got clean. Those stories are all about outcomes, not outputs.
The struggle the nonprofit sector has is the same struggle CharityNavigator has. It is damn hard to measure outcomes, largely because those outcomes depend entirely upon the person being served. Our sector can provide, support, love, cajole and give to those that need are services each and everyday — but if those individuals we are serving don’t take steps on their own to improve their own lot in life, it’s all for nothing. At the end of the day, outcomes aren’t something that nonprofit sector can really control. Yet, that is the measure we are always asked to achieve.
But, there are some legitimate steps our nonprofits can take to start gathering data that is more outcome, rather than output, based and Feinberg does a great job of pointing those out. That magical tool is surveys.
Feinberg goes in depth talking about the work of the Stand Together Foundation and their approach of surveying individuals about the nonprofits they have accessed in the past and whether they found the services valuable and whether they would recommend our services to other individuals.
The Voice of the Customer reigns supreme
Feinberg hits on something that is well known in the for-profit world and less appreciated in the nonprofit world; the voice of the customer is often the most important voice we hear. For-profit businesses are often asking us about how well they are doing. Was the store clean? Were you treated well? Are our prices reasonable? Was our delivery timely? The questions go on and on. These are not academic exercises. These businesses have learned that the number one advertising tool out there are recommendations from friends and family. By working on the service delivery can better outputs lead to better outcomes.
My challenge to you is to think about the work you are doing and think about how you can start asking questions of the people you are serving to lead you to better service delivery. If you can start serving your folks better, you are well on the road to not only better outcomes, you are also in a prime position to share those stories that can lead to better fundraising.
The Weekly Announcements
A quick rundown of what I am seeing and hearing in the nonprofit world….
Now Hiring!
I have a nonprofit in Sidney, Ohio that has reached out to me looking for a new Executive Director. I can tell you that this a very strong organization that needs leadership that has strong entrepreneurial and staff management skills. If you have any interest, please drop me a line at pinnaclestrategiesltd@gmail.com and let’s talk!
Registrations now open for Paul G. Duke Academy for Community Leadership!
Registrations are now open for continuing education offered by Edison State Community College in Piqua for the Paul G. Duke Academy for Community Leadership! I have been a proud alumni of both programs and have even been asked to help present sessions and teach classes. It’s an amazing program and I would encourage you to be a part of it if you are in the area! You can register here.
There are only two spots open for the 1.0 Academy and one spot open for the 2.0 Academy!
The Paul G. Duke Academy for Community Leadership 1.0 is a series of workshops designed to develop more effective directors, leaders, board members, staff and volunteers of nonprofit organizations. Course topics include the fundamental practices of board recruitment, planning, staffing, budgeting, evaluation, board meetings and community awareness. The classes are designed to help individuals make a difference on their boards and in their community.
The Paul G. Duke Academy for Community Leadership 2.0 has been created and designed specifically for experienced executive directors of nonprofit organizations and alumni of the Academy for Community Leadership 1.0. This challenging and intensive Academy is coordinated by the Academy development team and participants. Advanced participants will conduct original research and exchange results via reports and discussion. Participants will help to further develop the foundational agenda for each of the four monthly sessions that will explore nonprofit organizations—based upon their backgrounds, experiences, pressing issues and needs—through self-analysis, organizational analysis, guest speakers, best practices, resource review and in-depth discussions. At its conclusion, Academy 2.0 participants will be immersed in the annual Mosaic of Community Leadership Conference, both as participants and presenters. Academy 2.0 is the latest collaboration between the Paul G. Duke Foundation and the Edison State Community College Center for Leadership Development.
What Can We Work on Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
We are so close to 500!
Over the last few weeks, the subscription base to the newsletter has just grown and grown and grown. It has finally arrived at a point where we are SO CLOSE to 500 SUBSCRIBERS!
Originally, I had hoped to have 500 by the end of the first year, but it looks more and more likely like it’s going to 15 months to hit that 500 figure, which is still pretty impressive. You can help this newsletter get to that 500 figure by sharing this publication with your friends and colleagues!
Personally, I feel very excited about the future of this newsletter and if you have any ideas or comments, please feel free to share them with me at pinnaclestrategiesltd@gmail.com
I know many of you have shared this with your friends and colleagues and I am very grateful. Thank you! If you haven’t shared it yet…..well, here is your chance….remember we are trying to get to 500….right?
Ready to Learn Something New?
One of the prettiest cities in the Midwest is Indianapolis and travelling there can open a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
Online Learning Options from Texas A&M Announced
If travelling for professional development isn’t in the cards (or the budget), the Center for Nonprofits at Texas A&M University has some great offerings! I recently enrolled in one of their certificate programs and really enjoyed the online format and the online discussions that were developed. It was time and money well spent and I would highly recommend this program, especially for early or mid-career professionals. The next session begins in early February and you can learn more here!
Other Ways to Connect
Our coaching practice has openings and it has been a blast working with nonprofit leaders all across the country! If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have, please reach out to me at pinnaclestrategiesltd@gmail.com.
Here are some other ways you can keep in contact with Pinnacle Strategies!
Check us out on our LinkedIn Page
Check us out on the Celebrating Leadership Facebook Page.
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