How do you measure the effectiveness of a nonprofit organization? In my post, Attributes of a Successful Nonprofit, I argue that low spending on overhead is not the way to measure the worthiness of a nonprofit, and suggest new criteria for donors to use in evaluating a nonprofit organization. A reader asks: “How would you objectively measure attributes like “lifecycle preparedness” and “organizational authority,” as just two of your 12 criteria?“
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In this post, I pick up from How Much is This Dollar Worth which argues that low spending on overhead is not the way to measure the worthiness of a nonprofit. Instead, I suggest the following criteria for donors to use in evaluating a nonprofit organization.Continue reading
Nonprofits often brag that a high percentage of their money goes directly toward services – with a low percent toward actual overhead and fundraising costs – as this insert in a direct mail piece shows. However, rather than benefitting nonprofits, this strategy only undermines nonprofits’ ability to fundraise and to plan for success.
The Connecticut Association of Nonprofits’s 7th Annual Conference is built around the theme of: Imagine. Innovate. Impact. Keynote speaker William Strickland, the President and CEO of Manchester Bidwell Corporation will address the Art of Leadership and the Business of Social Innovation, in what is being billed as a simple, optimistic message for leaders: give people the tools they need, treat them with respect, and they will perform miraculous deeds.Continue reading
Last night, the UJA-Federation held a reception celebrating 25 years of its Management Assistance Program, its internal volunteer matching service to provide help to its 150 funded agencies.
MAP consultants have worked on more than 1,100 projects for UJA-Federation beneficiary agencies. Services have included strategic planning, board development, marketing, branding and creative services.
Red Rooster Group has provided pro bono branding services through MAP. The branding we did for ENGAJE!, a joint educational venture to help foster awareness of Jewish values to early childhood teachers was featured in MAP’s 25th Anniversary program. In addition, I was featured in a video of MAP consultants discussing their experiences.
For the ENGAJE! initiative, we created a logo and stationery items, brand manual, as well as invitations and program guide for their successful launch event. We are pleased that these items were selected as showcase examples to be featured in MAP’s 25th Anniversary brochure (shown above).
A recent article in The New York Times, Charities Give to State Campaigns, Despite Law, described how some nonprofits had purchased tickets to fundraising dinners for elected officials, or had otherwise contributed to their campaigns, in violation of the law. Neither party seemed to care or take responsibility, pushing off oversight to the IRS. The article acknowledged that minor amounts entailed, and yet found it fit to disparage nonprofits on the front page.
I find this quite disturbing for a number of reasons.
This entry is in response to an op ed piece by Nicholas D. Kristof in the New York Times on December 24, 2008: The Sin in Doing Good Deeds.
Easing our insistence on low overhead ratios for charities, will help them to co-opt the profit motive. One reason that nonprofits are not as effective with their own in fundraising is not specifically the profit motive, but the fact that the public insists on nonprofits maintaining low overhead ratios (such as 85%). On the face of it, it makes sense that donors don’t want to see their money spent on administration or fundraising costs – they want it to go directly into programs.
The trend toward accountability in the nonprofit sector and the resulting need for performance evaluation is a problem facing the substance-abuse treatment sector, according to an article in The New York Times on Dec. 22, 2008. The article explores the concept that few rehabilitation programs have the evidence to show that they are effective. Continue reading
Most foundations are not making changes they and their grantees say are essential to supporting nonprofit success, but there is evidence of a gradual shift to more nonprofit friendly grantmaking practices, according to a new survey from Grantmakers for Effective Organizations.
The research, conducted by Harder+Company Community Research, was the second-ever comprehensive survey of the attitudes and practices of all staff ed grantmaking foundations in the United States. It builds on a similar study conducted in 2003 by the Urban Institute in partnership with GEO.
There is a pronounced disconnect between the ways in which grantmakers are supporting nonprofits and what nonprofits say could contribute most to their success. Further, many grantmakers have not adopted practices that they themselves see as important for effective grantmaking.
In focus groups through GEO’s Change Agent Project and in surveys conducted by colleague organizations, nonprofit leaders have consistently pointed to two critical areas where changes in grantmaker practice can lead to better support for nonprofits:
Red Rooster Group is a New York based graphic design firm that creates effective brands, websites, and marketing campaigns to increase your visibility, fundraising, and communications effectiveness. Contact us at info@redroostergroup.com.
After the three-day Nonprofit Congress in May, the National Council of Nonprofit Associations (NCNA), which produced the Nonprofit Congress, organized a lobbying day to create awareness about the nonprofit sector. The New York delegation was one of many that went to Capitol Hill to lobby our Representatives and Senators about the National Capacity Building Initiative (put forth by NCNA). The bill provides $25 million for training and infrastructure for charities to help them become more effective and sustainable (half the funds from the federal government, half from private sources). That’s me (Howard Adam Levy, Principal of Red Rooster Group) in the yellow jacket, with Fred Fields, from the United Way of New York City, behind me, and Doug Sauer, Executive Director of Council of Community Services of New York State, bottom left.
The lobbying effort was important on three fronts:
1. To generate awareness about the need for funds specifically for non-program activities to allow nonprofits to pay for leadership training and operational costs.
2. To demonstrate to government the impact and importance of the nonprofit sector, which accounts for $1 trillion of the economy and 10% of the workforce.
3. To promote advocating for the nonprofit sector as an essential activity for nonprofits and to show that we can be effective when organized (with the NCNA the organizing body for the social services sector).
WAKE UP CALL: What are you doing to advocate for the nonprofit sector?
Red Rooster Group Principal Howard Levy was selected as Hazon’s Person of the Year for the 2009 Jewish Environmental Bike Ride in recognition of his accomplishments in promoting, fundraising and organizing for the 4 day event.
Photo Caption: Nigel Savage, Hazon founder and Executive Director, honors Howard Levy as Hazon’s Person of the Year for the 2009 NY Ride. Michael Hopkins and Jenny Eisenberg, Ride Co-Chairs, are in the background.