America's Charities Consolidated Annual Report - page 18

here is much debate,
criticism and controversy
today regarding performance
ratings for nonprofits. Many individuals
disagree with the focus on financial
metrics as a ratings tool, and there is a
growing demand to measure charities
by their impact. In addition, some
individuals want to look at charities
more like for-profit companies. All of
these viewpoints are worth considering
and together will improve the ability of nonprofit
organizations to attract sustainable funding and deliver
on their promises.
“Donors no longer rely solely on a “feel
good” barometer, but also want to
know that an organization is worthy of
their support and investment.”
What makes this possible? Our digital culture
has transformed the nonprofit landscape with the
immediacy and accessibility of massive amounts of
information. It’s the age of the democratization of
charity information. Anybody can get information about
a charity at any time. Never before in our history has
so much information been accessible to so many. You
have an almost constant supply of information and
demand for news, information, data and stories.
The result is today’s donors, whether individual,
corporate or institutional, are more sophisticated in
making philanthropic decisions. Donors no longer rely
solely on a “feel good” barometer, but also want to
know that an organization is worthy of their support
and investment. With so much information available,
the focus has turned to what impact is an organization
Impact—With a Focus on Support
and Engagement
There are two pathways of conversation around
impact. One is focused on the nonprofit organizations
themselves to demonstrate governance, leadership,
transparency and impact. The second is focused on the
corporate side to have an engaged workforce, smart
charitable investments and sustainable social impact.
America’s Charities sees itself at the important nexus
of nonprofit performance, donor expectations and
workplace giving programs. From supporting corporate
social responsibility and employee engagement to
increasing the number of individuals who give through
payroll deduction—gifts that are five times greater
than the average—to the number of values-driven
conversations, these efforts are designed to provide
a road map to help nonprofits achieve a higher level
of performance and help companies demonstrate the
impact of their investments.
Our goal is to support charities generate more
It’s Time to Invest in Performance
and Impact
by Richard Neustedter, Partner, Non-Profit Financial Specials and
Lynne D. Filderman, Vice President and Chief Marketing Officer, America’s Charities
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