managing your charity watchdog profile to increase giving

Managing Your Charity Watchdog Profile to Increase Giving

6/4/15 1pm Eastern

The presentation will begin shortly.

Before We Get Started3

This presentation is being recorded!

The recording and slides will be emailed to you later this afternoon.

Please chat in any questions for our guest. We will answer them in the formal Q&A session

at the end of the presentation.

3

Our guest presenter »

Peter Miragliotta, Jr., MBA

• Founder and president of MASST Associates, LLC

• Developer of Charity Watchdog Review

Optimize Your Charity Watchdog ProfileTo

Improve Fundraising

© 2015 MASST Associates, LLC When Results Matter

Managing the Charity Watchdogs

Workshop Objectives

• Why you should care about the CWDs• Understand how they work (opportunity)• Recognize how the CWDs could be impacting

your ability to attract and retain supporters • Know your CWD Profile• Enhance your CWD profile with simple, low

cost steps you should take• Grow your donor database

Managing the Watchdogs


2.1%

8.9%

Blackbaud report for CY 2014Online giving grew 4 times faster than overall giving• Overall giving up 2.1%• Online giving up 8.9%

Source: Blackbaud Index May 1, 2015© 2015 MASST Associates, LLC When Results Matter

According to the Association for CertifiedFraud Examiners 2013 report, 12 – 13% ofall reported workplace fraud occurs in thenonprofit sector. Contributing factors thatcause this sector to be susceptible include:lack of transparency, weak internalcontrols, lack of business/financialexpertise and lack of resources, amongothers.

SundayReview | OPINION

Who Will Watch the Charities?

Charity WatchdogsBuilding Bridges Between NPOs & Donors

“Many donors are concerned that their giving is not making a real difference. And many of the

most effective nonprofits—those clearly making a difference for the people and causes on which

they focus—struggle to find enough donors”.

More Money for Good Guide: Bob Ottenhoff and Greg Ulrich

© 2012 GuideStar USA, Inc. and Hope Consulting

Charity WatchdogsBuilding Bridges Between NPOs & Donors

“We certainly try to match up donors with the correct charity, but we often find that many people come to our website with a specific

charity in mind and are looking for validation that it is indeed as good a charity as they

thought it was…” [emphasis added]

Ken Berger: CEO Greater Good Associates; formerly CEO Charity Navigator



• Charity Navigator• GuideStar / Philantropedia (acquired 2011)• GreatNonprofits• BBB Wise Giving Alliance• CharityWatch (Amer. Institute of Philanthropy)

www.highperformingnpo.org

The “Watchdogs”Managing the Watchdogs

http://www.highperformingnpo.org/



• Free – “Guide to intelligent giving”• 8,000 + charities rated / > 7 million visits• 336,000 registered users• $10 Billion in (estimated) annual giving• Financial, Accountability & Transparency,

Results Reporting (developmental)• Information about unrated charities

– Expected to expand

Charity Navigator

Four Star CharityManaging the Watchdogs


MASST’s Charity Navigator ScorecardManaging the Watchdogs

Dimension Element 990 Web

A&T Independent Board ✔

A&T Diversion of assets ✔

A&TAudited financials / independent / oversight committee

✔ ✔

A&T Loans – related parties ✔

A&T Document board meetings ✔

A&T990 to board before publishing

✔

A&T Conflict of interest policy ✔

A&TRecords retention / destruction policy

✔

A&T Whistleblower policy ✔

A&T CEO listed with salary ✔

A&TProcess to determine CEO salary

✔

A&TBoard listed / not compensated

✔ ✔

A&T Publish senior staff ✔

A&T Publish 990 ✔

A&T Donor privacy policy ✔

A&T Opt-out donor privacy ✔

Dimension Element 990

Financial Program Expenses ✔

Financial Administrative Expense ✔

Financial Fundraising Expense ✔Financial Fundraising Efficiency ✔Financial Primary Revenue Growth ✔Financial Program Expense Growth ✔Financial Working Capital Ratio ✔

> 90

80 - 90

70 – 80

55 - 70

0 Stars < 55

Financial – 7 Elements A & T– 18 Elements


• Developmental / not yet rated - 14 Elements • IRS 990 – Programs ≥ 60% of program expense• NPO’s website and survey:

– Element One: Alignment of Mission, Solicitations and Resources

– Element Two: Results Logic and Measures– Element Three: Validators– Element Four: Constituent Voice

Charity NavigatorManaging the Watchdogs

Results Reporting


“Unrated” CharitySources of Revenue: Because our goal is to help individual givers, we evaluate only those charities thatdepend on support from individual givers. Specifically, we require public support to be more than$500,000 and total revenue more $1,000,000 in the most recent fiscal year. And we do not review charitiesthat receive most of their funding from government grants, or from the fees they charge for their programsand services.



GuideStar:• “Revolutionize philanthropy…,advance transparency,

enable users to make better decisions…”• 2.4 million charities / ~7.8 million users• 107,463 nonprofits have provided data• Free & premium to users / Free to charities

Does not do ratings• User reviews; award up to five stars • GuideStar Exchange – nonprofit provided web page

– Charting Impact


Impact and effectiveness information

Financial information

Basic information such as contact information, mission statement, etc.

External perspectives –– User reviews

GuideStar Exchange - TodayManaging the Watchdogs




GuideStar Exchange - Today

Quantitative Program Results

• Self report:– Select from library of metrics

• Establish baselines– Cause area (20) relevant– Publish on GuideStar

• Future system to validate data

GuideStar Exchange – Coming SoonManaging the Watchdogs



GreatNonprofits:• “a place to find trustworthy nonprofits”• users can rate more than 1.8 million nonprofits

– Small / local nonprofits– over 170,000 reviews

• “Partner sites”, e.g. JustGive, GuideStar, and GlobalGiving



Great Nonprofits


BBB Wise Giving Alliance:• “…helping donors find charities they can trust.”• 1,200 reports on national charities• Over 10,000 reports by local BBBs• 20 Standards (Pass / Fail):

- Governance - Fundraising & other - Finances - Effectiveness information

• Charity Seal Program – Licensing fee (national charities)




BBB Wise Giving Alliance



CharityWatch:• “America's most independent, assertive charity

watchdog”• Approximately 600 charities “graded” from A+

to F• Minimum $50 membership donation required

to access Charity Rating Guide & Watchdog Report


Some Keys toOptimizing Your CWD Profile

• Educate yourself about how they operate and opportunities for you

• Familiarize yourself with rating elements and criteria

• Register and provide information (more is better)• User test your website

– Make it easy – Promote your rating(s)

• Seek expert advice and assistance



Peter Miragliotta, Jr., MBAPresident

MASST Associates, LLC

[email protected]

www.masstassoc.com

Twitter: @MASSTPMirag

When Results Matter

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managing your charity watchdog profile to increase giving

Government & Nonprofit