Charity Navigator and other watchdog agencies
Monday, November 24th, 2008
“You are being watched…”
As we approach year-end I am often asked to list the major accomplishments that I can point to at Episcopal Relief & Development.
This year I put our 4-star rating from Charity Navigator right at the top of the list. As I thought about it, I realized that while I was proud of the rating, I was also slightly unsettled by it. Let me explain why.
(No….it’s not because having achieved the top rating, there is no where to go but down, as a witty board member pointed out to me!)
Basically, Charity Navigator and other watchdog agencies, like the Better Business Bureau’s give.org, measure a very specific aspect of most organizations. They look at the financial data in our tax returns and measure our ratios on fundraising and administration against other not-for-profit organizations and external benchmarks. They are in essence looking at how efficiently we raise and spend money. There is a received wisdom that the lower those ratios are, the better the organization. But that’s not the whole picture.
What the watchdog agencies are not measuring is impact and impact is the real measure of an organization. Is the organization carrying out its mission effectively? Is it saving lives? The watchdog agencies take the donor as the primary stakeholder. To a certain extent this is certainly true, but the people for whom the organization exists are the beneficiaries—not the donors. Obviously we couldn’t exist without donors, don’t get me wrong (we love our donors!), but donors should be asking us whether we are having an impact on the beneficiaries and holding us accountable for that.
Unfortunately impact is an elusive thing to measure. It requires a very heavy investment in monitoring and evaluation of programs. Furthermore, there is no cross-industry standard on how to measure impact and therefore it is very hard to compared one agency’s impact to another’s. At Episcopal Relief & Development we are investing heavily in rigorous monitoring and evaluation and have made good progress, particularly in measuring the impact of our malaria net and child survival programs.
So, while I’m pleased with the good ratings from Charity Navigator and Give.org, what I’m really proud of is the fact that we can document the impact of our programs for those we seek to serve. We’ll be announcing the monitoring and evaluation results for NetsforLife® in December as we celebrate what we’ve accomplished and proclaim where we’d like to go in the next phase of this important program—so stay tuned!
Have a blessed and peaceful Thanksgiving.


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