America's Charities Consolidated Annual Report - page 20

that the percentage of charity’s expenses that go
to administrative and fundraising costs—commonly
referred to as ‘overhead’—is, on its own, an
appropriate metric to evaluate when assessing a
charity’s worthiness and efficiency.”
GS, BBB and CN want to ensure nonprofits have the
resources needed to invest in their own sustainability
and success and recommend that donors look at these
other four factors of performance when considering
which charities to support —
governance, leadership and results.
Charting Impact: A Charity
Impact Tool
As nonprofits are being asked to demonstrate
their impact, individual, corporate and institutional
donors now have a tool to examine the impact of
their investments by seeing how their dollars are
helping nonprofits carry out their missions, see their
accomplishments and measure effectiveness.
GS, BBB WGA and Independent Sector (IS)
— a means for
charities to tell their all-important story about their
vision, accomplishments, effectiveness and impact.
This process demands strategic focus and board
engagement in a self-evaluation process by answering
five key questions.
The five Charting Impact questions are:
What is your organization aiming to accomplish?
What are your strategies for making this happen?
What are your organization’s capabilities for doing
How will your organization know if you are making
What have and haven’t you accomplished so far?
CI is described as “common format to convey your
organization’s contributions to advancing the common
good will: Encourage people to invest their money,
time, and attention in effective organizations; Highlight
the difference your organization makes; Sharpen your
approaches; and Position your organization to work
with and learn from others.”
“Individual, corporate and institutional
donors now have a tool to examine the
impact of their investments.”
Between a starting point and the end goal, there are
many milestones along the way. Establish success
indicators at the outset of program development —
and communicate them, warts and all, transparently
social-impact and consistently. Ensure stakeholders
understand how they’re individually contributing to the
larger task at-hand, as well as how collective efforts are
achieving progress.
Take a look at
Since March
2013, it has over 2.6 million views. The conversation is
gaining momentum and a collective voice is gathering
As nonprofits begin to understand that investing time
and resources to meet BBB WGA’s standards, obtain
a respectable CN rating and develop the strategic and
outcome focus of CI, they face an additional challenge
since donor investment relies largely on two subjective
factors — emotional connection and disposable income.
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