America's Charities Consolidated Annual Report - page 10

8
I
’ve had the pleasure to know
Mario Morino for nearly 15
years and have watched as he
has worked tirelessly to change the
discussion in the philanthropic sector
from doing well by doing good to managing outcomes
for collective impact. For those who don’t know Mario,
he is co-founder and chairman of Venture Philanthropy
Partners and chairman of the Morino Institute. But
before that Mario was an entrepreneur, technologist
and co-founder of LEGENT Corporation, a software
and service firm that he retired from in 1992 to pursue
his passion in philanthropy.
“Institutional and individual donors
are increasingly favoring those
charities that can demonstrate their
effectiveness and impact.”
Through his work as a philanthropist and through
the eyes of a social entrepreneur, Mario has slowly
but surely been beating the drum about the need for
charities to better manage to outcomes in order to
demonstrate their effectiveness. In his recent book,
Leap of Reason, he makes the eloquent and forceful
case that given economic pressures that will not
lessen in the foreseeable future, government will not
be able to justify huge subsidies for social sector
(re: charitable) activities and entities without more
assurance that those entities and their work are on
track to produce measureable, scalable and sustaining
results.
Given the fact that about 30% of all funds going
to charitable organizations come in the form of
government grants and contracts, the implications for
the philanthropic sector are immense and increasingly
imminent. In addition, the discussion amongst
foundations, social venture philanthropist and high net-
worth donors is increasingly favoring those charities
that can demonstrate their effectiveness and impact
particularly as it occurs in collaboration with others
toward more collective impact.
What does this mean for America’s Charities and
those charities we represent?
First and foremost it means donor expectations —
with the donor being institutions and individuals
— are rapidly changing, and there will be increased
expectations around good governance and
transparency, sound management and application
of business practices that will result in greater
effectiveness and outcomes measured through the use
of data and analytics. Additionally, charities will need to
be able to not only prove their value in more focused
business metrics, they will have to be able to translate
that into effective storytelling leveraging digital and
social media.
Add to this the already existing layer of charity
evaluators and information gatherers in the form
of Better Business Bureau Wise Giving Alliance
(BBB WGA), Charity Navigator (CN), Charity
Watch, GreatNonprofits (GN) GuideStar USA (GS),
Independent Sector (IS) and others and you can
begin to see how these new expectations can seem
The New Narrative on Performance
and Effectiveness
by Steve Delfin, President and CEO, America’s Charities
1,2,3,4,5,6,7,8,9 11,12,13,14,15,16,17,18,19,20,...36
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