America's Charities Consolidated Annual Report - page 21

19
Measuring either of these specific drivers is difficult.
Unlike for-profit organizations, which provide a tangible
feature/benefit equation, charities are challenged to
meet more personalized criteria for investment. Utilizing
a common set of tools and language will provide the
highest opportunity for success, and should be a key
strategic factor for developing sustainable investment in
their mission.
“It’s time to help donors, too,
understand what what they are being
asked to look for.”
To maximize success, charities should use ratings as
a means of promoting good stewardship of donors’
dollars and ensuring their public image adheres to
standards of transparency and accountability with
demonstrable impact and outcomes. This will attract
donors and, possibly more importantly, assure you do
not lose donors due to bad ratings or publicity.
The challenge for each organization is to understand
the operational requirements needed to manage the
ratings and how it integrates with an impact narrative.
Good governance, which includes providing all
the tools needed for success, should incorporate
strategic objectives specifically designed to enhance
accountability, transparency and effectiveness. This will
allow the organization to focus on impact by telling your
story instead of defending how funds are used.
As companies are being asked to demonstrate the
impact of their investments and charities are being
asked to demonstrate their impact, operate with good
governance, be transparent in their operations and be
leaders in transforming society, it’s time to help donors
understand what they are being asked to look for.
As Jacob Herald, GS CEO says,
“It’s time to retire the overhead ratio in favor of a
multidimensional, impact-oriented framework to
achieve what really matters: getting more money to
the best performing organizations.”
In 2013, America’s Charities began to focus on this
essential dialogue.
1...,11,12,13,14,15,16,17,18,19,20 22,23,24,25,26,27,28,29,30,31,...36
Powered by FlippingBook