Like many of you, I’ve often relied on Charity Navigator to help find the “best” choices in a particular category of causes. They use the tried-and-true overhead ratio (dollars spent on programs versus dollars spent on admin and overhead) to rate the effectiveness of the charity. However, PhilanthropyAction.com, recently reported that with all the new metrics available, Charity Navigator and other evaluation websites are looking for better ways to judge an organization’s efficacy.
After all, the internet has changed the way we give. We micro-give with a dollar here and five dollars there. We forward fruitcakes and tweet hashtags and show our support in dozens of different ways, all in support of charities old and new. With that desire to spread around our donations, comes a need to quickly and clearly understand to whom we are giving. Some new websites have emerged that are looking to take advantage of the expanding amount of information available to help us judge a nonprofit.
Next year you’ll be seeing revamped ratings at Charity Navigator that emphasize effectiveness and transparency. GreatNonprofits.org invites givers to review a charity and it’s programs. Philanthropedia gathers opinions and information from nonprofit professionals. GiveWell.net solicits detailed information from the charities themselves. All of these newer sites still have a long way to go in terms of the size of their databases. They have the same problem we as donors – an ever-expanding universe of worthy (and not-so-worthy) 501c3s.
So, while those websites may help us narrow our choices, many of us will be gathering additional information on our own. Which is where many nonprofits – especially those that have been around a while – drop the ball. They’re slow to make use of the online tools and the online people who are driving this new way to give.
Scott Henderson at Rally The Cause wrote a great post about today’s “Cause Consumers” and how they relate to the “Cause Amplifiers” that have evolved in the social media universe. Nonprofits need to recognize the influence and passion of the Amplifiers – who often make the best use of social media – and to harness their power to raise awareness for their cause.
Eventually, all sides will do better by sharing their skills. Once a grassroots charity grows to a certain point, they’ll have to “cross over” into a more structured administration. That successfully expanding organization will have to begin the juggling act between staying nimble and accessible, and managing their larger programs and staff. At the same time, a decades-old institution needs to find ways to re-connect on a more personal basis with their donor base. In both cases, the young organization and the old war horse have one thing in common – the need to engage those passionate Cause Amplifiers who can help reach and support the Cause Consumers.
One of my family’s favorite organizations has long been the Salvation Army. At over 150 years old, they’ve survived every technological revolution and are still going strong. I happen to think it’s those bellringers. Every year, the Salvation Army is personified by the nice man outside of Nordstrom who always has a smile for everyone whether they put a buck in his bucket or not. It’s still personal for them. They’ve added credit/debit card readers to a few of those buckets, along with a website that allows you to give in many ways with the click of a mouse. They’ve even got an iPhone ap for people who’d like to do a little bellringing on their own. They may be one of the oldest charities in America, but they’re still changing, evolving, and adapting.
And as one guy who really knew how to upset social media once said, “Adapt or perish.”
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Tags: 501c3, cause, cause amplifier, cause consumer, charity, Charity Navigator, donate, fruitcake, GiveWell, great nonprofits, Nordstrom, Philanthropedia, Philanthropy Action, Rally the Cause, Salvation Army, Scott Henderson, social media
Some insights into how sexy charity campaigns don’t always equal effective programs. From PhilanthropyAction. com…
http://bit.ly/5hlaYR & http://bit.ly/7M6iFF