This document discusses the importance of accountability, transparency, and impact measurement for donors, charities, and beneficiaries. It summarizes that donors want more information about how charities will use donations and achieve their missions. For charities, impact measurement is important to prove their effectiveness to donors. Beneficiaries will benefit from increased funding going to high-impact charities. The document advocates for a rating system that evaluates charities on financial health, governance, transparency, and results to direct donations to organizations that create the most social value.

2. Your Guide
to
Intelligent
Giving
Where the
Heart
Meets the
Mind
Critical Friend to Charities

3. The Data Proves Impact
 4.5 million distinct
visitors (6.4 million
hits) in 2012
 92% say
evaluations
affected their
decision to support
individual public
charities
 CN ratings
influence decisions
on billions in
donations annually
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

4. 4
OUR DEFINITIONS OF ACCOUNTABILITY &
TRANSPARENCY (per Prof. Brackman Reiser)
ACCOUNTABILITY - is an obligation or willingness by
an organization to explain its actions to its
stakeholders.
1)FINANCIAL - to safeguard and manage the
organizations financial resources.
2)ORGANIZATIONAL – to consistently follow rules of
governance and operational process.
3)MISSION – to set goals and then measure and
manage performance to assure the organization is
achieving meaningful results.
TRANSPARENCY - an obligation or willingness by a
organization to publish and make available critical

5. QUALITIES OF AN ACCOUNTABLE & HIGH IMPACT ORG.
Financial Health
• Strategy/Theory of Change
•Passion
•Experience
•Persistence
• Creativity
• Ability to get other s to follow
Capable
Leadership
• Data management discipline
• Constituent feedback
• Outcome focused intent
• Relate efforts to outcomes
• Learn and adjust approach
• Continuous improvement
High
Performance
Impact
• Positive, sustainable
change
• Independently
evaluatedHIGHER RISK
INVESTMENT
LOWER RISK
INVESTMENT
* Inspired by the Alliance for Effective Social Investing
Mission Accountability: Results
(RR)
Organizational Accountability: Governance (A&T)
Financial Accountability: Financial Health

6. Financial
Health
Accountability
(Governance)
&
Transparency
Results
Reporting
A scalable, in
depth, multi-
dimensional
charity rating
system.
CN 2.0
2011 -
Organizational
CN 1.0
2002 -
Financial
FROM ACCOUNTABILITY IN ONE
DIMENSION TO THREE AND BEYOND
THE FUTURE (CN 4.0?):
OUTCOME MEASUREMENT
2013 –
Mission

7. Why is this is one of the
most important issues for
those who want to create
social value?
7

8. 8
90%
87%
78%
76%
62%
59%
46%
41%
34%
31%
30%
28%
24%
0% 20% 40% 60% 80% 100%
Org's Effectiveness
How the Org will Use my Donation
Quality of Leadership
Percent of Costs to Overhead
Ease of Donation
Not Being Asked for Money Too Often
Ability to Direct Donation's Use
Regular Progress Reports
Endorsements by Person I Trust
Prompt and Sincere Thank You
Ability to Get Involved
Org Approach - Novel / Innovative
Contact with the End Beneficiaries
THE DONOR PROBLEM
* Based on the Money for Good donor research of Hope Consulting

9. Because donors will have access to much
more robust information than ever before
about each organization’s ability to bring
about social value (long lasting and
meaningful change in the world).
9
WHY IT IS SO IMPORTANT FOR DONORS?

10. The Nonprofit Sector Problem*
“… there is virtually no credible evidence
that most nonprofit organizations actually
produce any social value.”
*“The End of Charity” by David Hunter – Philadelphia Social Innovations Journal

11. Because many more social entrepreneurs
will see to it that their charities will become
focused on measuring and managing their
performance.
11
WHY IT IS SO IMPORTANT FOR CHARITIES?

12. 12
THE BENEFICIARY PROBLEM

13. Ultimately we believe this will lead to a
significant and measurable improvement
in human welfare and acceleration in
solutions to our world’s most persistent
problems.
13
WHY IT IS SO IMPORTANT FOR BENEFICIARIES?

14. (The Nonprofit
Marketplace
Hewlett Foundation,
2008)
THE PROBLEM SOLVED

15. HOW WE ARE HELPING SOLVE THE PROBLEM

16. Recommended Resources

17. Recommended Action Steps