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Nonprofit Radio for January 24, 2014: Giving 2013

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Marcia Stepanek, Ken Berger, and Rob Mitchell: Giving 2013

L-R: Tony Martignetti, Marcia Stepanek, Ken Berger, and Rob Mitchell
L-R: Me, Marcia Stepanek, Ken Berger, and Rob Mitchell at #2013Giving

With me from Tuesday’s live stream of #Giving2013—the release of last year’s fundraising numbers and this year’s forecast from Atlas of Giving—are Marcia Stepanek, new media faculty at the Heyman Center for Philanthropy at New York University; Ken Berger, CEO of Charity Navigator; and Rob Mitchell, the Atlas’s CEO.

 

 

 

 


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Hello and welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent your aptly named host can’t be in studio today. So me, your cosa, our host for the day, sam liebowitz, the show’s line producer and this week e-giving twenty thirteen it’s a rebroadcast of this past tuesdays livestreamed release of twenty thirteen fund-raising results and the forecast for twenty fourteen from the atlas of giving rob mitchell, ceo of the atlas, delivers a ten minute press conference style announcement. Then tony hosts the discussion with him are ken berger, ceo of charity navigator marcy, a sta panic new york university faculty member, and rob mitchell live, listener love and podcast pleasantries to all. Tony will be back next week. Here is giving twenty thirteen my name’s rob mitchell i’m the ceo of atlas of giving we’re a dallas based business concerned with monitoring the velocity and trajectory of charitable giving in the united states. First, a little background about the atlas of giving we have developed technology that allows us to estimate charitable giving by each of nine sectors each of four sources and fifty states each month. The atlas also provides the only regular and reliable forecast of giving by sector source and state for each of the upcoming twelve months each month, we produce an updated report of giving activity and an updated forecast. The report is available at no charge at atlas of giving dot com new reports come out and are available after the twenty first of each month today, i’m very pleased to announce that two thousand thirteen was a fantastic record setting year for charitable giving in the us, but i’m also here to caution that the initial forecast for twenty fourteen is much more modest. For the first time in two thousand thirteen, charitable giving crossed the four hundred billion dollar mark in the us, which bolsters the u s reputation as the most filling throb picked country on the planet. In two thousand thirteen, a total of four hundred seventeen point eight billion was contributed by individuals, corporations, foundations and through bequest that this money has benefited more than one and a half million charities and churches across our nation. Now this amount represents a thirteen point, three percent increase over the more than three hundred sixty eight billion given in two thousand twelve and it also is one hundred billion dollars more than given at the height of the great recession in two thousand nine. E-giving growth, this this tremendous giving growth was fueled largely by historic gains in the stock market, the down as many of you know, was up twenty six percent, the s and p almost thirty percent, and the nasdaq was up almost forty percent in two thousand thirteen. There were other contributing factors as well, and those included an improving employment picture, a recovery and real estate values. Schnoll very low inflation, low interest rates and improving growth in gdp. Every sector that we measure experience growth. However, several sectors perform significant significantly better than the national average, most notably, human services organizations were up more than nineteen percent, environmental charities, up eighteen and a half percent, and the education sector giving to the education sector was up sixteen point two percent. All three of those sectors have a high correlation to stock values their performance does, trailing in the national results in two thousand thirteen were our largest sector, which is churches and religion. Church giving has ah heidtke high degree of correlation with employment, and it is still dealing with the effects of high unemployment and will continue to deal with those effects for at least another year. Individual organizations, apart from churches that rely on many small gifts for many small donors, are still feeling the lasting impact of high unemployment and many of their donors out of work the atlas was giving looks it also at four sources of gifts individuals, corporations, foundations and bequest. In two thousand thirteen, the highest growth came from foundation giving, which was up more than nineteen percent. We believe that this was primarily related to stock performance in each of the last two years, the trailing source of giving was corporate gifts up ten percent. Now i’d like to look ahead two thousand fourteen and talk about the initial forecast for twenty fourteen today we believe that national giving will grow at a much slower pace than two thousand thirteen, so for two thousand fourteen, our initial forecast for the twelve calendar months is that giving will grow for percent. We fully expect that human services, environmental and education sectors will perform better than the average and that church giving will grow, but about it half the pace of national giving growth, please keep in mind that conditions can and do change and that the forecast is updated each month. Also, remember that the reliability of the forecast decreases the further out we look durney. So i would encourage you if you’re interested in keeping track of the forecast to check the monthly forecast that atlas of giving dot com every month one significant affect our event like a nine eleven event or a hurricane, hurricane katrina or a superstorm sandy, we’ll have a major impact on the forecast, so it’s important to keep checking next, i’d like to make four observations about giving from two thousand thirteen individual mega gifts of one hundred million dollars or more accounted for almost one percent of the entire national giving total in two thousand thirteen second, the second observation that we have is that we’re observing that coverage and discussion of the affordable care act. Obama care appears to be having a dampening effect on health e-giving and we are hearing anecdotal stories of people citing obama care as the reason that they’re curtailing their health e-giving ring, we will continue to monitor and report on this observation throughout two thousand fourteen third, we see that there may be a correlation between media coverage and charitable giving response in two thousand thirteen we most noted that give we most noted this in giving to environmental organizations and human needs organizations both have been particularly prominent in news reports and coverage over the last couple of years or since the recession forthe observation is that the hyre payroll taxes that began in two thousand thirteen did not appear to have any significant impact on giving. Now i’d like to talk about four trends that we’ve noted the first, and possibly the most important is that giving two churches is growing at less than half the rate of the fastest growing sectors. Now this is due to two two factors one is is a demographic church attendance and membership is continuing to decline. That’s that’s one reason the second reason is that most churches rely heavily on many small gifts for many small donors and are affected hyre by high unemployment and its after effects for several years. The second trend that we’ve noted is that the growth and donors advice funds is making a significant and positive contribution to giving in the us and his fundamentally changing our charitable giving economy. Third, the popularity of making gifts online continues to grow and improve the efficiency and effectiveness of the giving economy and then lastly, how an organization raises its money and who it raises it from, hasn’t a normal and enormous excuse me impact on fund-raising results to conclude, i’d like you to remember that the atlas of e-giving monthly report is available at no charge at atlas of giving dot com the complete report with the data for today’s announcement is there now, along with the press release for this announcement, also at atlas of giving dot com, we have an inexpensive forecasting tool on the website for less than two hundred dollars, and with answers to six quick, easy questions, any charity or church can immediately get an express custom forecast of giving for your fiscal year like our national forecast. Your express custom forecast is updated monthly for each of the next twelve months. I’d like to thank you for joining us today for this announcement on before i conclude, i’d like to give special a special shout out to tom moran and terran lubin and mutual of america for providing our facilities today. So ah again, thank you for joining us. I’m going to turn it over now to tony martignetti, the host of tony martignetti non-profit radio welcome to giving twenty thirteen non-profit radio is very proud to be co hosting e-giving twenty thirteen, with the atlas of giving many thanks to mutual of america for use of their beautiful thirty fourth floor boardroom. You may see in the background some some snow that’s, our thirty fourth floor view of the coming storm, the stone that’s arrived. We’re very glad that you’re with us on the live stream. If you want to join the conversation on twitter, use the hashtag e-giving twenty thirteen and i’ll see your questions. E-giving e-giving e-giving you’re listening to the talking alternative network, waiting to get a drink. Cubine do you need a business plan that can guide your company’s growth seven and seven will help bring the changes you need. Wear small business consultants and we pay attention to the details. You may miss our coaching and consultant services a guaranteed to lead toe, right groat for your business, call us at nine one seven eight three three four eight six zero foreign, no obligation free consultation. Check out our website of ww dot covenant seven dot com oppcoll are you stuck in your business or career trying to take your business to the next level and it keeps hitting a wall? This is sam lebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three that’s to one to seven to one eight one eight three the conscious consultant helping conscious people be better business people. You’re listening to the talking alternative network. Oppcoll with me is marshes to panic. She is new media faculty and advisor at new york university’s heimans center for philanthropy on twitter. She’s at caused global ken berger is ceo of charity navigator on twitter he is at ken’s commentary and rob mitchell you remember him on twitter, he’s at philanthropy man or it also looks to me like at philantech roman so if you want to do it at philantech roman, you could do it that way. He has a roman statue to me, it looks like it could be a century. Well, no, not a century general. It could be a roman general he’s i feel pretty pedestrian. I’m just at tony martignetti that’s that’s me on twitter. I’m going to ask rob teo to talk a little more so that we’re all starting with the same background and information. Rob, how does the atlas of giving prepare the review and the forecast? And how does it differ from the blackbaud index and e-giving yusa to the methodology? The atlas of first of all, i think it’s important to talk about why the atlas of giving came into being i spent thirty years as a practitioner in the non-profit fund-raising world and i was always disappointed that there wasn’t something available that had utility for me and benchmarking our results on a timely basis or related to our fiscal year, and there was no forecast available, and as a result of of my experiences a practitioner, i felt like there were there were correlations between charitable giving and certain factors in the economy, demographics and events. And so what we did was put together a team of twenty five phd level researchers and analyst and we examined over seventy different potential variables to determine their correlation with giving that had been public publicly reported over the last forty two years, and what we found was indeed, charitable giving is directly correlated with certain factors in the economy, demographics and events, and in fact, so we’ve built algorithms. The first one we bill tony, was for national giving the national giving figure and that algorithm when we first created it. So it measures the things that correlate to charitable giving and their strength. Give us an example a few examples of what some of those variables are. They range anywhere from stock market values, real estate values, consumer. Confidence too. Believe it or not, auto parts sales heimans okay. Oh, interesting. All right. Eso all econometric reported numbers from government sources at various levels. Yes. Okay. And so what we what what we have is we now have developed an algorithm for each of nine sectors each of four sources, and one for each of all fifty states and the things that are correlated to giving in each sector or different. For example, e-giving toe education has a high degree of correlation to stock values. E-giving two churches has almost no relation to stock market values, so the formulas are different for each of the sectors and each of the source. Okay, and how does this differ from the blackbaud index and giving yusa? Well, you know, not being a complete expert on either of those two things. I do know that the blackbaud index is based largely on i think now almost four thousand organizations that are blackbaud customers that they try, they’re able to track their data. I would say that it’s interesting if you’re a blackbaud customer to be able to see how your results compare against other blackbaud customers. Thie other thing that i think the blackbaud index is invaluable for is its online giving index it’s the only one that is available currently and then in terms of giving yusa the atlas of giving would not exist today had it not been for giving yusa weii, we took forty two years of their data to build our algorithms, and they have served our sector well for more than four decades. And what we’ve done is take it to a different level with a new technology that enables us to measure the velocity and the trajectory of charitable giving in the us. Marshall let’s, let’s, start with you just you know, generally you heard rob’s comments about twenty thirteen, twenty fourteen what your thoughts? Oh, a lot of factors, i think it’s very interesting. Of course, corporate giving is off course stagnant, lots of in-kind giving it again, i think what’s what’s really fascinating and i think it’s it portends more of the same, perhaps in future years is the trajectory of online e-giving i think it’s ah, now a small percentage but it’s it’s. Fascinating to see that technology is not only changing the way we give the changing our organization’s changing what’s. Required to engage donors and kind of turning those traditional fund-raising models kind of on their year online is is still a small proportion of total giving, but growing right quite rapidly, right? And it’s, not just the online it’s it’s what all of that online is doing to the engagement, all the online engagement and the way we run our charities, and and what what’s required of us to get more engagement? More fund-raising can. How about you? What you thought about twenty, thirteen, twenty fourteen? What we heard? Well, i mean, i think it’s a very interesting model and, you know, from our experience the mohr, different perspectives on charitable guy e-giving there are the better there is a posse t i think of different choices, so i’m pleased to see this is an alternative way of looking at at things. The other thing that strikes me right away is the question of what are the metrics and how transparent are they relative to the others that are out there were very big on transparency and there’s attention, i think here because on the one hand, you don’t want to give away your secret sauce. It’s your business. Model, but on the other hand, it’s critically important, i think teo make certain that you disclosed as much as possible so that people can look at it and make those comparisons to know for certain that the twenty five phds and what not or indeed going down the right road. So that would be one question that that i would have in terms of how ah, consumer customer non-profit would have some certainty about the question of the metrics and their transparency. Robbie wanna wanna gironde? I would say, ken, that it’s a great observation when we’ve heard many times before. Bonem and you use the term secret sauce and obviously, is the the formulas or proprietary, but i would also say that we are we’re in search of a collaboration with a major research university with whom we could disclose all of our methodology and all of our all of our results and the database of information that we now have compiled of giving by sector source and state back to nineteen, sixty eight so we would welcome the opportunity of including a an academic collaborative partner. That’s great. Okay, cool. Can rob mentioned? Well, we’re all talking. About over four hundred billion dollars in twenty thirteen. And rob mentioned a bunch of economic factors, the level of unemployment and low inflation from the watchdog perspective. What what else might you think is going on? Well, i think it’s really important to remember on i think the urban institute does some great work in this area, that from what we see, there are three buckets of money that thie non-profits sector relies upon, and this bucket of money, which is private contributions, is the smallest of the three buckets, the overall amount of money that goes into the sectors over a trillion dollars a year. Some say it’s a cz muchas one point five trillion government is estimated to give as much, if not twice a cz much depending on what you statistics you look at and then the biggest bucket of all and it’s very ironic in this world of social entrepreneurship is earned income, and it has been the case for a long time, with in the case of universities and so forth that’s the biggest bucket. So i think one of the trends that we see when you look at the overall picture, which is important to bear in mind, especially for a lot of direct service human-centered sargon is ations that rely predominantly on government money is government is imploding in many ways and, you know, there’s cutbacks going on, so so that is a scary sign. So i hope that you’re right, that the terrible giving is indeed mark it lee increasing because it’s going to need if, if that’s the case, it could at least help to fill some of that void for some of those charities that fit the profile, i think i think that that’s where we i think that’s the biggest trend right now, i think, is that we’re in the middle of dealing with the after effects of the great recession. Some people have observed that typical typically non-profits they sort of they go over the cliff there’s a sort of a delay factor because you have certain contracts and so forth. And i think that there’s it’s still going on for the non-profits and i think that’s that’s a big challenge for them. So that’s, why i really hope that you’re right, andi. I hope that research corroborates that you’re right because it’s going to be more important than ever, i think marcia human services yeah took off considerably from two thousand twelve to two thousand thirteen. And i know you have some thoughts. Well, uh, i think again what we’re seeing i told you, michael closer marchenese cycles it? Yes. Okay, uh, i think what we’re seeing is, you know, the introduction of a lot of free agents. I often say in our curriculum that we are seeing not just the one percent coming to the table, but a huge influx of the ninety nine percent coming to the table, which along with them bring new voices new causes, new ways of doing things and not to stick two heavily toe online. Right now, i think that’s the big opportunity here, i think that’s the big engine of giving in a lot of thie sectors. And so when we talk about human services, when we talk about crisis e-giving so much of this, this new platforms where there’s experimentation being done online and with some new platforms and new mobile e-giving i think these sectors are becoming the beneficiaries of some of that. Oh, and some of these new sources of giving that are being tapped on line, i want to get to ah first question from twitter again, you can join the conversation on twitter, use the hashtag e-giving twenty thirteen and i’ll see your questions. The first one is from lynette singleton at a cg for non-profits and this is for rob. Rob can can non-profits use atlas of giving to help develop their marketing communication plans and if so, how? I would say marketing and communications plans? Yes, also they’re solicitation plans because it’s going to be really exciting for practitioners to now be able to use the information on these forecast to make important decisions about when they would like to send out a direct mail piece when they’d like what’s the best time to schedule a special event? What is the best time to launch a capital? A new capital campaign that that sort of information has never been available before? And it’s a little bit scary? I wouldn’t advocate that any organization take their entire direct mail file based on the forecast and shift it shift a mail drop from from one month tio two four months later, but to test and see that the the the validity of the forecast is indeed correct would, i think, is the most prudent and the best fiduciary responsibility that anyone in a charity can have. All right, another question from stephanie meyers, thank you, stephanie. She would like to hear more about how the internet is changing e-giving and predictions for online e-giving who wants to monisha jump into that? But first of all, what does your your report on your surveys? They predict more of the same with online giving that this will continue to increase? Yes, yes, what can you share from from the way we don’t? We don’t specifically track online giving what we observe is that online giving is growing and part of that is a cannibalization of traditional methods of giving and part of it is really growth because new donors are attracted to the online platform, right? I think the you know, the point that the technology is changing behaviors it’s not just the tools. Ah, one of the big significant things coming out of ah lot of this activity now is thie ability for so many non-profits and charities to show not just tell proof is ah huge not only in marketing activities but engagement. And when you could prove show a video of something, it gets shared twice more often when you can prove with numbers can metrics that online giving an online platforms allow you to have that you didn’t have before it’s easily morris, inexplicably, you can start to prove to donors on amore continuous basis how that money is being spent, where it’s going and deep those non-profits that air using that kind of proof in those metrics, in these numbers, in the context in which we were discussing today ah, doing far better, early research is coming in ah, it’s changing everything, teo also, i think the last point on this is the change is coming because splatter of engagement, the the approach that most non-profits take to engaging donors is being shifted dramatically by the influx of social media and technology. It’s not just a question of taking someone in and then moving them along up the scale of the ladder now it’s worth vortex approach, where people engage in different ways across the life cycle. Oh, and to have those metrics and that online and those technology platforms looks inning to the tips things and forging those patterns. Is going, teo, create those new opportunities for giving. And i have. I have a lot of guests on non-profit radio talking about online engagement, finding donors on potential donors, where they are not where you’d like to engage. Have them engage with you, right. Talking alternative radio twenty four hours a day. Hi, i’m ostomel role, and i’m sloan. Wainwright were the hosts of the new thursday morning show, the music power hour. Eleven a. M gonna have fun shine the light on all aspects of music and its limitless healing possibilities. We’re going invite artists to share their songs and play live will be listening and talking about great music from yesterday to today, so you’re invited to share in our musical conversation. Your ears will be delighted with the sound of music and our voices. Join austin and sloan live thursdays at eleven a. M on talking alternative dot com. I’m the aptly named host of tony martignetti non-profit radio. Big non-profit ideas for the other ninety five percent fund-raising board relations, social media, my guests and i cover everything that small and midsize shops struggle with. If you have big dreams and a small budget, you have a home at tony martignetti non-profit radio friday’s want to to eastern talking alternative dot com. Do you need a business plan that can guide your company’s growth seven and seven will help bring the changes you need. Wear small business consultants, and we pay attention to the details. You may miss our culture and consultant services, a guaranteed to lead toe, right, groat. For your business, call us at nine one seven eight three, three, four, eight, six zero foreign, no obligation. Free consultation checkout on the website of ww dot covenant seven dot com dahna. Hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com. Can how about, you know, charity navigator? And in terms of the big data, i mean the information that’s available, the what the metrics that non-profits can share just first, just to say, i think the use of the term vortex is a good one, because that one of the strengths of of the internet is, you know, there’s so much information and the possibility for information, but it’s also the opportunity for so much abuse and chaos and and and misinformation and that gets to the question of quality information and the non we think the evidence points to the fact that in the future, as more and more reliance comes to the internet, the charities that will distinguish themselves that are most likely to do the best are those that provide the most quality and meaningful information on what they’re doing, where it stands today. Unfortunately, still the vast majority of non-profits do not publicly report in a meaningful way on their results and their a variety of reasons. It’s understandable for a variety of reasons, is cultural issues, there’s, technology issues and then there’s just capacity issues. But i think that the pressure is increasingly on the charities to move in this direction and it’s best you know, they need to find the good advice and a good assistance to get from where we are today to that point. And, you know, charity navigator is beginning to evaluate are the charities that we look at based upon the quality of how they report the results publicly, and we are finding indeed, that there is a long, long road ahead of us, and but we would really encourage the charities to to bear this in mind that in the future, in a nutshell, you know, the most successful fund-raising nowadays is still very emotionally based and storytelling based. And you, khun, use streaming videos very effectively, and that will always be the case that that’s powerful give you that granular level of understanding of how a charity is helping some people in a meaningful way. But in the future it will be increasingly important that i think it’s even now the future ah, that you need to have a t the end of that story to peel away and say and look here’s data, meaningful data that shows that this story happens every day here is meaningful reporting on our results, it’s not just activities it’s, not just overhead. It’s, not just outputs. It’s meaningful information about riel changing people’s lives called social value outcomes, that sort of thing. We think that more and more that will be the case. And the challenge will be to get the funding from the right funders to be able to build a system, to be able to report that information and that’s the challenge for the charities, i think and that’s again. Why i hope that they’ll be more charitable giving from individuals and other private sources to make that happen. Lots of hope onda future is here. The future is today. Yes, now, ken berger, charity navigator. You heard it here on giving e-giving twenty thirteen. You’re not going to find this kind of stuff anywhere else that you’re you’re in the right place. And if your friends aren’t here, tell him to join because they’re still another twenty nine minutes left. Um, let’s, go to another question about donor advised funds. There was a question dahna advice. Funds did increased considerably from twenty twelve. Twenty thirteen. Rob we heard that. Um let me see what the precise question was. I think it was just about what the aah! How? Donorsearch robin, you want, i’ll be happy to take that well, the growth and donors advised funds, especially in the last three years, has been phenomenal bonem the growth in giving to those funds and the grants that air coming out of those funds to benefit all the non-profits and churches has been very, very significant. And one thing that has been noted by several of the donorsearch advise fund managers is that they’re seeing a trend of people who have small, private family foundation’s moving assets, converting their assets from a foundation into the donor advised funds because it’s ah it’s less expensive to administer and less trouble. And so we expect that that’s going to continue and there’s also a lot of choice because doner can can start a donor advice fund, they don’t have to make a e-giving decision about where their money is going today and ken’s point about accountability. Accountability is on the minds of lots of donors, especially individual donors, and so they have the opportunity then to say, make a gift to their advice fund in one particular tax year and then not make a decision about where the money is going to go. Until later. So it’s it’s a great benefit i want to jump in and say that on this topic of accountability to it’s it’s not just where is your money going and how is it being spent? But also, how are you moving the needle? Why, you know, what have you done for us lately is very much on the minds of donorsearch it’s, not just about dahna where is it going? Oh, and it’s not just the usual prerequisites for what’s required in a report, i think the increased use of multimedia, the increased use of marketing, the trust factor all of these things, we’re seeing very creative non-profits moved the needle on this quite significantly. Charity water is, you know, one of the examples that that has really picked up, at least in marketing and some of the backend metric. Teo recognizing that trust is a huge issue. And basically reconfiguring it’s digital face teo, talk about here’s the proof here’s, here’s, the money stream where’s the money. So to the extent that a lot of non-profit behavior could be influenced by what some of these numbers are showing, they’re listening is doing in early platforms and dahna forums i think that’s, that’s critical. This is such an important segment of dollars that’s going to be coming to the table, please. Just one had one thing on donorsearch vice funds there is now for free, a called a df widget that was developed by a number of the large doner advise funds it’s completely neutral in the sense that a variety of them are using it now, and any charity can get thea widget and put it on their website to ah, expedite getting mohr donor advised funds, donations you, khun goto, fidelity charitable, schwab. Ah, and i think they’re building a number of others on there. So that’s, a free resource that people could get access to on that donor advised funds. Question came from council non-profits council. Glad you with our school. Let’s. Ah, let’s. Talk a little about states. New york. I know from the report was the most charitable state. That may be very ironic to a lot of a lot of people watching, but i don’t it’s not ironic to me. Or probably any of us. Well, maybe maybe for rob. Rob is based in texas, so maybe ironic for him. But new york was the most charitable state. Marcia, you’re at the heimans center, based here in new york at new york city, new york university. What do you think? What you think is impacting new york’s, uh, generosity. It’s, it’s, diversity, it’s it’s. Ah, so trick demographics. Ah ah, latto public private initiatives. Say what you will about from mayor bloomberg. Especially right. Hey, set up a very strong infrastructure. Tio have public private partnerships. He has also is a philanthropist set of standards, a lot of different kinds of giving lots of experimentation in area that i think it kind of sets the culture for this as well. Also to ah, again, you see in flux. And i hate to keep pounding on this, but i cannot underscore the importance of this. Enough. Where you see tech centers ah experimenting in cause giving, setting up new platforms, creating some of that. What you mentioned is the multi trillion dollar economy around the nonprofit sector that’s also adding into so much of what’s happening here. S o we’ve got the business technology business of non-profits we’ve got the influx of new giving, and we’re also seeing very interesting trends with women and philanthropy. Ah, and how ah lot of spending that hadn’t been happening in that sector is starting to time on and why you were going to be having a women’s summit. Look at this she’s pitching for in one go ahead what’s the date goes well, we’ll share the whole thing the girl, the hashtag give it all april twenty eighth um ah, and we will be posting more on that but it’s women giving hashtag women e-giving april twenty eighth and then right it was also the stock market that also helped. Yeah, a minor detail, of course stock market that goes with that saying does help new york city considerably. We have a bunch of questions terrific let’s see robin from a way we can handle this one kind of quickly from non-profit diversity us how khun jobseekers use the atlas of giving can they wow that’s when i’ve never been asked before you hear it first on give e-giving twenty thirteen it’s remarkable the breakthroughs that are coming and giving twenty thirteen i don’t know. I don’t know why everyone’s not here. I see somebody in the building across that is not at their screen there, they’re having coffee, but they’re not the screen, so that person is not benefiting from the wealth of wisdom and questions that are coming and giving twenty thirteen i didn’t go. I have had a feeling that you should think about it. I could be more long winded if is necessary. So i would say the best thing is to look at the trend. For example, if i were a job seeker, i would be looking at i would be looking at jobs in the sectors which are the fastest growing. Currently that would be the human services sector, the environmental sector and the education sector, and i would, uh i’d be more cautious if i were seeking a job in the church of religious sector, and i know that that is tough, because if you’re committed to a life of faith professionally, you’re going to stay in it, but also, you know, the health sector underperformed the national average and it’s something to at least think about take a look at all right dahna another question. I saw chris tuttle asking more show the audience would like me to admonish you that they’re having trouble hearing you. Thankyou okay tend to gesture with your microphone. Oh yeah, so i don’t know. Hold them. Figure out something. There you go. Don’t okay, don’t gesture with your mic, chris asks. Do you think we’ll see a plateau in online giving increases anytime soon? Is that the possible toe perfect? Ah there’s always this cycle with technology that it’s overrated in the beginning, underrated for the long term and the various cycles and generations of backlash is stepping forward, stepping back, stepping forward, trying to figure out how to use it more effectively. And so on so forth, i don’t think we’re going to see a plat plateau of online giving, i think again, the factors are threefold one you have this ninety nine percent coming to the table two you’ve got a fresh supply of ninety nine percent coming to the table thanks to a lot of service learning programs in schools that are helping to expand the culture e-giving from early age is keeping it close. You’ve got a lot of new causes and new startups. Ah lot of silo comes silo crashing between the for-profit for-profit sector in the nonprofit sector in terms of social enterprise is a lot of that stuff gets counted there’s a lot of new activity coming from a lot of places and a lot of it is happening online just can online just just yet two things. One is just a case in point that online giving is just that it’s beginning point charity navigator is a website. We are a charity and all we do is a website. The majority of our giving still comes from people writing checks and sending them to us in the mail. And ah, the critical nature of continuing that form of fund-raising will not end any time soon. So that’s just a a and i think we all agree on that. But just as a cautionary note, i think the other thing is, you know, i i i think it’s really important for us to bear in mind this different types of organization. The one percent of charities in this country that in our estimate get eighty six percent of the funds each year, and the remaining ninety nine percent that get about fourteen percent from our analysis. But i would say it’s, not the ninety nine cents the ninety nine percent that are coming to the table. It’s, about ten to fifteen percent mb or the vast majority of charities in this country are fifty thousand or less, and their capacity on the internet may never be there. But don’t despair. Those males checks from your friends and neighbors will still be very important in this in this future of ours. It’s never in either it’s never an either or scenario. Here, it’s it’s. You know there’s always the cake is always the traditional forms of giving and that’s not going to go away. Nor should it. Of course not. But this cake has a thickening frosting on the top. And ah, it’s, very sweet. And, uh, it will continue to attract ah lot of people who, you know i’m sorry, but five dollars, ten dollars, twenty dollars. Pretty soon it’s real. Money and we’ve seen it over and over and over again in specific campaigns. The challenge will be, of course, tow. How to use these tools more strategically against mission. Just one push back on that. I mean, i agree in concept, but the game in the nonprofit sector has been and remains he or she who does the best marketing winds and that includes the internet and the charities that are most likely to do the miss best marketing are the ones who have the most money, which tends to be the one percent. I do think the internet is beginning to open up a window for some of the sort of mid sized savvy organizations that have some resource is for marketing. But still the basic dynamic of the big charity is winning, and the smaller charity’s not having that capacity losing is there. The hope is that there’s more of a window than their wass, and i agree with you there well in in a void of transparency. Unfortunately, sometimes the pretty package gets the most attention. But i disagree with you that it are increasingly we’re going to see the charities that are not just good. At pretty packages, but the charities that air good through the use of these tools in distinguishing their most influential supporters. Oh, and can use those strategically for not only comprehensive marketing strategies, but integrated fund-raising strategies that are going to be the winners that are going to lead also just real engagement mean a small local charity. The vast majority you said have budgets under annual budget is under fifty thousand dollars what’s the percentage you notes around it’s almost fifty percent of all chairs and have ah, i have a budget under fifty thousand dollars, right? But i mean, i’ve always thought this opens up an enormous opportunity online for, for real, for local engagement, if if you’re fund-raising on ly in your town, even not even all over your state exact, i think i think it creates enormous opportunities strategies that can do this smartly and expense. I want you to be right, and i mean, all of what we’re working on hate can burger no, no, seriously, i want i want that to be right. That’s what we’re working on is to try to get to that point where that is what? That that it’s no. Longer. Here she does. The best marketing winds. It’s. He the charity that has the best results and really helps the most people wins, is where what we’re talking about here. You’re listening to the talking alternative network. Have you ever considered consulting a road map when you feel you need help getting to your destination when the normal path seems blocked? A little help can come in handy when choosing an alternate route. Your natal chart is a map of your potentials. It addresses relationships, finance, business, health and, above all, creativity. Current planetary cycles can either support or challenge your objectives. I’m montgomery taylor. If you would like to explore the help of a private astrological reading, please contact me at monte at monty taylor dot. Com let’s monte m o nt y at monty taylor dot com. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way. Look forward to serving you. Talking alternative radio twenty four hours a day. I’ll give you an analogy. I just saw this last night on new york tv ah full page ad for radio shack in nineteen ninety one and every item listed on the page a camcorder ah, a cellular phone, a computer, every item listed on the page, if bought separately, would run into the thousands of dollars today in two thousand fourteen, we have every capability of every device listed in nineteen, ninety one in our smartphone, and we treyz he was right networked community is maturing to the point where using those smartphones and connecting people in real time is having a huge impact. We see it every day on small do you have a production studio in your pocket? Look at yelp and distribution, production and distribution. Look at yelp. Oh, and increasingly we’re seeing yelps for non-profits i mean, the point of this is that the locus of power is increasingly thanks to some of this technology moving outside the traditional organizations and so there’s a lot of demand, new demand for accountability that needs to be heard. And, you know, we’ve seen this everything from the common controversy to others, politics aside, the way these things need to be handled is with more engagement from the start, in fact, your donor’s, certain demographic donors. But i’ll argue most donors want to see more accountability, and they want to know that there are answers on the other on the other end and that you couldn’t take less than a day to answer an email. Let’s, go back to some questions, kenny siegler, maybe you khun deal with this one kind of quickly, uh asks, is there any data in the report regarding generational giving? Are you tracking generational giving? We’re not, or or or by gender? Well, we have no gender or age related e-giving information, okay. J angeletti from the angeletti group, do you think the next generation of donors is reaching its prime? And can we start to expect impactful gif ts from them? Yes, he’s referring teo, millennials reaching there, you know, i would say i would say one of the things that you and i can’t define this as a trend, but just an observation is that, and it relates to the to the last questions that we were talking about in terms of engagement and online. Is that the smaller niche? More? Nimble organizations that make good use of technology, i think, have an advantage with the next generation of donors, and they’re there there by nature mohr, accountable and transparent and that’s what the next generation of donor is looking for so much of engagement is, is you think of tom sawyer and non-profits khun b the tom sawyer and get everybody else to paint the fence in terms of leveraging their ask in terms of leveraging volunteer engagement. This is an amplification technology. This is also listening technology, how critical it is to now be ableto listen by setting up these platforms to what donors have to say. So there are this donor relationship management it’s no accident that non-profits are hiring data analysts of their own or getting into you talk about pretty packages info graphic ex things like this to more succinctly say what they’re about distinguished in a tweet oppcoll length of time that’s so what? Why this? Why now? Why us? So what? You know again i think that the technology can be good used for good or ill and the packaging can be meaningful and the packaging khun b junk and the challenges for people to be able to discern the difference and that’s why, i think increasingly groups like charity navigator and others are going to be in a critical role to try to discern what is quality and meaningful information. And what is just pretty packaging of claiming accountability when there isn’t any. So that’s again, why we, you know, i totally agree that we want to get to the right place here, but we need to keep our eyes wide open of the challenges that we’re going to face and those charities out there that aspired to do the right thing you will have. I think you know that challenge of the good and the bad information, and we urge you to try to find the role models out there like charity water, you know, and others that are really on the cutting edge of of trying to promote themselves with that meaningful information. Marshal. Let me askyou charity water. It is mentioned often. Can you name some others? I’m kind of putting you on the spot or core can some others that you think are doing online engagement particularly well. Owe the american red cross the national wildlife federation? Um, traditional organizations born digital organizations as well the iraq and afghanistan veterans of america association setting up a private social network to basically convene vets who have come home and let me ask you same, you know, it’s it’s funny, because i think that what we’re fine, what we’re finding is even the early adopters of really measuring results the most they often are sort of these midsized organizations, they’re not the really large ones and they’re online presence and they’re promoting themselves were so we’re trying to say to them brag show off, you should be proud, and they’re still in the early stages of developing their online presence. So nurse family partnership, smaller groups like roca in boston, harlem, children’s zone, there’s they still have a ways to go even those those that have the most to share really need to get more savvy about how they’re presenting themselves online, and i think we talked about a lot of different things here. We’re talking about engagement of donors, traditional donors and new ones for talking about the quality data like december and analyzed. We’re also talking about outreach and marketing when we all of those to see what’s possible, i can give you a really example. We were recently in conversation with anat, a large, very large, a national organization that is comprised of nine hundred different organizations. They all have. They do not have a single fiscal year. They don’t share a single fiscal year. They don’t share a single database, so their ability to do any amount of planning at an umbrella level is almost non existent. What we hear so often, eh? I edited contribute magazine for many years. And we would hear this. And i know you look into this now so passionately. You know, this lack of standardisation this lack of you know this this proliferation of apples and oranges here. What are we measuring? What? Where is the standard? How much can we really forecast? How much can we really demand in terms of accountability? And how much can we really compare who’s doing one thing well or best? Ah, if there is very little transparency very little that our government demands in terms of disclosure and very few common standard. And i know there’s a lot of movement in the field to get to some kind of common. Set of metrics on and i applaud those efforts, but we’re not there yet, and i’d be interested to hear what you have to say. And then where is this going to go? How close are we getting any closer to having some kind of riel in depths analytical cloud here? You know, we recently signed a letter called the overhead myth letter, and it says a website overhead myth dot com, which basically was a letter to the donors of america that said, you know, overhead should not be the primary focus on the primary focus should be results, but at the same time they’re neat way all think there needs to be a second letter to the non-profits of america that says, hey, we’ve sort of given you some bit of ah wiggle room on overhead, but now the donors have know where to look for the thing we say is most important for them to look for, which is the results and so that that’s why i think the mo mentum and the challenge of this is critical, we’re going to continue to be involved in whatever way we can with all the groups that are working. On this, to try toe dr standards to set standards, to come to consensus on standards for how we go about measuring that’s a great resource called perform well, that’s trying to help with that, for example, and so i rich people to check that out, but we’re still in the early stages of this road and, ah, you know, we really need for there to be more early adopters that really understand that it’s not about the watchdogs, it’s, not about anybody, but we want to meet our mission in the most powerful way, the most effective way we can to help the most people we can. And ultimately maybe you’re not going to see it today, but we believe all the evidence is pointing toward more and more those charities, those non-profits that go down this road ultimately are going to be the most successful fund-raising wise as well as helping people wise. So it’s a win win on every level level if we get there and can i’d like people to know that you were on my show on non-profit radio, along with the other two co signers talking about first time the three of us sat down and been interviewed at the same time around what led to the overhead myth letter and ah, what you think is coming from it. So that show was think that was october or november of last year, i think was october okay and and actually have been to convene ings just this last week. So there’s more and more of a desire amongst some of the leadership groups in the sector to try to push this forward and continue to continue that conversation. And a lot of charities have told us that they’ve been very effectively able to use that letter to educate donors. Tio the what we consider to be the other factors that are equally, if not more important than that. But but non-profit media was first yes, i think yes to first. Quint. Convening that’s. Right. That’s, right. Subsequent is the controlling i promised to share the mic with marcia. I feel like i got emasculated, but but yours was not working so well. So we’re going to share her. We’re going to we’re going to share. I told you i hit ken berger. See, i knew there was a reason i knew was coming. Um and we just have a couple of minutes left. Let’s. See, uh, gene takagi is asking, has giving two non don’t advised. Fundez public charities, uh, jeanne, the lawyer, i’ii organizations that provide direct charitable goods and services grown. Yeah, sure, yeah, absolutely no question about it. Okay, there’s. Another question about donor advised funds. I just recovered that okay? Foundation giving foundation giving grew considerably. Rob wanted just remind us what the foundation giving numbers were condition growth. Do you remember? I don’t remember, okay, but it grew considerably from two thousand twelve to two thousand thirteen was the best performing sector. Okay, our source. Excuse me, sore sore source of giving and there’s a reason for that with the tremendous gains in the stock market and now with increasing real estate values, lots of the assets of foundations air held in the those two places and the way that reporting happens is i think most people are aware of the fact that the foundations are required to give away five percent of their assets each year. Well, it’s not necessarily the assets that are valued in the current year it’s the assets in the previous year and partly in the current year, depending on on when their fiscal year is and when they do, they’re reporting. So there is a lag between the stock market values and what foundation giving is going to that means, twenty fourteen has enormous promise for for charities seeking foundation support if i was twenty thirteen asset values. Increased considerably. Absolutely. If i were still a practitioner and planning my fund-raising strategy for two thousand fourteen, i would be shifting. Resource is into foundation grantmaking opportunities. Marshall, you want to come in, i’ll going to be still the mic. You won’t say anything about the foundation giving up attorneys there. I think we’re also seeing a lot of healthy it’s continuing. Sometimes call some of the major foundations kind of the you know, of course, the gates foundation is the wal mart foundations. I love the influence of having discipline, uh, the non-profit sector. So we’re not seeing a different we still have twenty seven different breast cancer charities in new york. Uh, yeah, you can, because, yeah, so so you know, one of the things that were also seeing is that, again, this gets back to the overhead issue, that there are more and more foundations that are becoming educated to the fact that if they give a charity eight percent overhead, just the infrastructure cost to manage that grant, let alone their operations, is inadequate. And as these foundations are increasingly requiring, reporting on results and not giving what is probably more resource is required infrastructure wise build a performance management system in the charity um but there is encouraging signs that at least some cherry some foundations are beginning to move in that direction of reducing their caps on overhead to the same degree, providing mohr assistance with building performance management so you can measure result but it’s also important that charity’s become their own advocates to educate. And encourage, they’re found the foundation supporters to help them in this regard, and some even bring the overhead letter with them. But it’s really going to be more and more important for the foundation community to step up and to also be early adopters to help the charities to become more focused on their results. Marshall, i’m going to give you the last question, but we only have a couple minutes left. Andi need to wrap up too. So this comes from colorado gives i’d love to understand where the statistics for online giving are coming from and where is the growth? So again, we suffer from a lack of standardization, but they’re in ten has some great statistics non-profits technology network, we have statistics in some research that gnu is starting to do in this area. People find that they will soon. Ah, and we also have some ah, a collective looking at tech soup and other places where these implementations, not to mention, you know, consulting firms and black bods, but you blackbaud all of that. So it’s it’s consistently these results nobody’s arguing with each other in terms of the trajectory nor the nor the growth the pace of the growth is a little arguable, but everybody ah, i haven’t heard anybody say it’s not going to be growing significantly. All right, we’re going to aa. We need to wrap up. My weekly podcast is tony martignetti non-profit radio there’s. Information about it at tony martignetti dot com. If you are viewing the the stream from tony martignetti dot com right below the viewing window there’s on at sign and you can click that and get weekly newsletter alerts. Aboutthe show email, email alerts about the show, thanks to very much thanks to my co host robb mitchell, and the atlas of giving is a real pleasure to do this. Thank you, tony it’s. Been it’s been great. And, of course, we want to again thank mutual america for this beautiful space on the thirty fourth floor at aa on park avenue and marshes to panic. Ken berger, thank you very much for sharing wisdom and thank you for being with us for giving twenty thirteen. The ring didn’t think dick tooting getting dink dink dink. You’re listening to the talking alternative network waiting to get a drink. Cubine are you stuck in your business or career trying to take your business to the next level? And it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s create the future you dream of two, one, two, seven, two, one, eight, one, eight, three backs to one to seven to one eight one eight three the conscious consultant helping conscious people be better business people! Hi, i’m ostomel role and i’m sloan wainwright, where the host of the new thursday morning show the music power hour eleven a m we’re gonna have fun shine the light on all aspects of music and its limitless healing possibilities. We’re gonna invite artists to share their songs and play live will be listening and talking about great music from yesterday to today, so you’re invited to share in our musical conversation. Your ears will be delighted with the sound of music and our voices. Join austin and sloan live thursdays at eleven a m on talking alternative dot com you’re listening to talking alt-right network at www. Dot talking alternative dot com, now broadcasting twenty four hours a day. Have you ever considered consulting a road map when you feel you need help getting to your destination when the normal path seems blocked? A little help can come in handy when choosing an alternate route. Your natal chart is a map of your potentials. It addresses relationships, finance, business, health and, above all, creativity. Current planetary cycles can either support or challenge your objectives. I’m montgomery taylor. If you would like to explore the help of a private astrological reading, please contact me at monte at monty taylor dot. Com let’s monte m o nt y at monty taylor dot com. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you, too? He’ll call us now at to one to seven to one eight, one eight, three that’s two one two, seven to one eight, one eight, three or find us on the web at www dot double diamond wellness dot com. We look forward to serving you. Dahna

#Giving2013

Image for blog post Atlas of Giving EventHosted by Atlas and NP Radio

Tony Martignetti Nonprofit Radio and Atlas of Giving are hosting a review of 2013 U.S. fundraising and the forecast for 2014. We’ll live stream the event, which will look back and ahead to giving by charitable mission, funding source and state.

Join us here–on this page!–on Tuesday, January 21, 10 to 11am eastern,* for the live stream. Leading up to the event, follow #Giving2013.

What you’ll see during the live stream event in the video embed window:

— Rob Mitchell, CEO of Atlas of Giving, will deliver a 10-minute press conference, releasing the review and forecast

— I’ll host a discussion of the results, forecast and fundraising trends with

  • Ken Berger, CEO of Charity Navigator
  • Marcia Stepanek, New Media Faculty & Advisor at the New York University Heyman Center for Philanthropy
  • Rob Mitchell

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Rob made his 2013 announcement on Nonprofit Radio last January.

I’m impressed by the Atlas of Giving methodology because it is based on economic, demographic and historical data. Hard numbers for precise measurement—and forecasting. Their team of mathematicians, analysts and statisticians unlocked the algorithm that delivers 91 to 99.8 percent historical accuracy back to 1972.

We’ll come to you from the stunning 34th floor Boardroom in Mutual of America’s flagship building on Park Avenue in NYC.

#Giving2013! Be here!

* I sincerely apologize to those in the pacific and mountain time zones. We didn’t anticipate live streaming when we locked in our venue. It’s our first time out. We’re shooting HD video and I’ll let you know when it’s up. Plus, it’s a G+ Hangout on Air so the stream will be available immediately.

Nonprofit Radio for July 1, 2011: Charity Navigator 3.0 Announcement

Big Nonprofit Ideas for the Other 95%

You can subscribe on iTunes and listen anytime, anyplace on the device of your choice.

Tony’s Guest:

Ken Berger, president & CEO of Charity Navigator, announces the next generation of the popular charity rating site, a reformulation of CN 2.0.

He’ll talk about lessons learned as CN has evolved from private foundation to public charity, striving to exemplify what it looks for in the 5,500 charities it evaluates. In what directions is CN nudging charities and what gives it the authority to move the sector?

This interview will be live and you’ll be able to call in on Friday at 877-480-4120.

Click here to take a 3-question survey for the show. The survey is now closed. Thanks to everyone who took the time to take the survey!

Here is a link to the podcast if you missed the show: 048: Charity Navigator 3.0 Announcement


 
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I interview the best in the business on every topic from board relations, fundraising, social media and compliance, to technology, accounting, volunteer management, finance, marketing and beyond. Always with you in mind.

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Welcome to tony martignetti non-profit radio i’m your aptly named host tony martignetti we’re always talking about big non-profit ideas for the other ninety five percent on this show. Welcome to the show. I hope you remember last week i had gail perry and fired-up fund-raising gail is the author of fired-up fund-raising turned board passion into action. She shared proven techniques to motivate your board to step up to their fund-raising responsibilities. This week, a conversation with ken berger he’s, the president and ceo of charity navigator. He has an announcement about charity navigator three point oh, we’re also going to talk about lessons learned as charity navigator has evolved from private foundation to public charity, striving to exemplify what it looks for in the fifty, five hundred charities it evaluates in what directions is charity navigator nudging charities and what gives them the authority to move the charitable sector in those directions? We’re going to talk about all of that with ken berger on tony’s take two at roughly thirty two minutes after the hour, the irs tells us what good governance means terms like transparency, accountability and governance since we talking with ken about some of those are often heard and i think rarely defined. So how does i rs to find them? I’ll talk about that at tony’s, take to roughly thirty two minutes after the hour. Right now, we take a break, and when we return, i’ll be joined by ken berger. Stay with me. You’re listening to the talking alternative network. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way. Look forward to serving you. Is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call a set to one, two, nine six four three five zero two for a free consultation. That’s lawrence h bloom two, one two, nine, six, four, three five zero two. We make people happy. Hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com welcome back to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. My guest today is ken berger for the hour, ken is president and chief executive officer of charity navigator. He has held leadership positions at a variety of human service and health care agencies large and small, and has operated programs serving the homeless, developmentally disabled, mentally ill substance abusers, the medically underserved and persons with hiv aids. His senior leadership positions have been in agencies such as johnny o professional service centers for the handicapped, the floating hospital volunteers of america, greater new york and the morris shelter. After nearly thirty years working in the charitable sector, ken berger joined charity navigator in two thousand eight. I’m very pleased that charity navigator’s work brings came to the studio. Welcome, kapin. Thank you, it’s. A pleasure to have you it’s great to be here. Charity navigator is ah, now a five oh one c three charity. Just like the charities that it evaluates. But it didn’t start that way. Why was it founded? And under what form? Basically, a family that was wealthy had become wealthy, wanted to give back and was looking for a place to go for objective information to make their charitable giving decisions, and they couldn’t find such a place. They were entrepreneurs, and so they decided to found this organization with the purpose of helping all donors make charitable giving decisions, and so that they incorporated in the year two thousand, and we were up and running in two thousand two, and you were originally incorporated not as a as a public charity, though well, it was a five, twenty three, but a private foundation, yes. And so for the first six years before i got there, basically the dugan family funded the organization, and then when i got there, one of my tasks was to help the organization transition to become a public charity and to have diversified funding sources and to try to walk the walk along with the organizations that we evaluate so that’s interesting, because you are now what you’re, as you said, you’re what you’re evaluating the same form of organisation, that five or one c three are there some lessons there since two thousand seven that you want to share? I won’t given my background, i brought the experience of of running public. Charities to the organization and so right away. Actually, i have been tasked with some other goals, and i said one of our goals needs to be that we need to be a role model. And so we put in place things such as terms for officers, term limits for board members, you know, they give her get policies for for board members and then just also trying to conform to every single standard that we had been holding, the charities that we evaluated, too, as well as the ones that we were in the process of developing so that we would meet all those standards. We took the thie independent sector guide, the principles of good governance and ethical practices, and we have been working over the years to meet every single one of those standards. So that’s, just a example of how we’re trying to walk the walk and to be clear, you’re in a waiting period now, right between the foundation status and the public charity status would just explain how that works, what we filed to become a public charity and two thousand seven, and at that time, the policy was there has to be a five year advanced ruling period where your transition and the purpose is that by the end of that five years, you need to show that you conform to the requirements to be a public charity, one of most significant being that at least a third of your funding comes from sources other than your primary funder. We’ve already achieved that goal, but it affects the official transition happens in november two thousand and twelve. But during this five year period, we can still receive donations and function like a public charity. Okay? And we’re talking about the charities that you evaluate, how many of those are there? And how do you select those? Those charities that charity navigator is looking closely at? We evaluate five thousand five hundred, and we select them from data we received from the irs. We get data on every charity that files with the irs, and we picked those that base. Basically, we follow the money because we’re our purpose is to be a guide to donors. And so therefore we go. We look at the places where donors give the most substantial amounts of money. And so of course, we only look at those that file a full nine ninety form, not the easy or anything else. And then we pick those that also are in each of the nine cause areas. So we also look for health. We look for education, we look for environmental, we look for religious affiliated all the different cause areas as well so that donors have a diverse choice and we have just a minute before the break. And so when we come back from the break, we’ll talk more in detail about the the how widely used charity navigator is these. But just before the break, these fifty five hundred charities that you’re evaluating represent roughly what percentage of all the all the revenue to the non-profit sector, the public charity non-profit sector, roughly fifty percent of all of the private contributions that come into the sector are within those five thousand five hundred and that’s actually very interesting, just so under six thousand charities, representing fifty percent of the fund-raising revenue of all the five twenty three out of one point two million five twenty three’s five thousand five hundred half, and there are other interesting numbers are going to talk about some of those the way the way it all shakes out after this break. This is tony martignetti non-profit radio, and after the break, can burger stays with us. So i hope you do, too e-giving attempting to bring good ending. Cubine you’re listening to the talking, alternate network, getting anything. Get in. Cubine are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s, create the future you dream of. Two, one, two, seven, two, one, eight, one, eight. Three backs to one to seven to one eight one eight three. The conscious consultant helping conscious people be better business people. Buy-in are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics, politically expressed hi and montgomery taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com looking to meet mr and mrs wright, but still haven’t found the one. Want to make your car relationship as fulfilling as possible? Then please join us, starting monday, may second at ten am for love in the morning with morning alison as a professional matchmaker, i’ve seen it all. Please tune in and call as we discuss dating relationship and more. Start your week off with love in the morning with marnie alison on talking alternative dot com. Talking alternative radio. Twenty four hours. Dahna welcome back to tony martignetti non-profit radio my guest is ken berger, ceo and president of charity navigator can right before the break, we were talking about the fifty, five hundred charities that you evaluate, and you said they represent fifty percent of the fund-raising revenue. I had a survey for listeners before the show. Most people thought that the fifty, five hundred represented between sixty one and eighty percent. So people listening overestimated the the value of those fifty, five hundred charities? Is that typical? Do what? What, what? What do people typically think of the of that bundle of fifty five hundred? Well, actually, your listeners are correct in the sense that if you just look at the sector without factoring in charity navigator thereabout three thousand charities in this country that garner about sixty percent of all the revenues that come in each year, so we we are working to rejigger than the ones that we evaluate to conform to those that get the most. So we’re a little bit part of the reason that we don’t get them all is because we’re trying to get all nine cause areas if we just did it that way. We would do all health and do all education. We might not do some of the smaller ones. I see. All right, so i mean, falsely imputing listeners the show. We’re actually right. Where? Where did the question maybe weasel mislead? Okay, so so three thousand. So you’re saying the three thousand largest public charities get sixty percent of the revenue of yes, of the roughly fund-raising revenue off the overall revenue of roughly one point five to two trillion dollars a year goes to three thousand charities out of the one, point, two million. Five o n c three. Okay. And charity navigator is not necessarily capturing those three thousand because you’re looking cross all the all the sectors. Exactly fair toe arts groups that would probably be grossly underrepresented if you just took the top three thousand or fifty five hundred. Yes. Okay. Um, you’re trying to be ah, role model for the charities that you are evaluating on. You said you using the independent sector guidelines could use a little more about what it is that charity navigator started looking at when it started its evaluation of charities. Well, that was before my time and, you know when sharon and navigators started, the goal was to try to find universal standards that every charity would could be held to. And it was difficult to say the least on the one place that they found was available for such information was the irs information that every charity of a certain size has to file. Go to the numbers first. Go to the numbers are should be universal, universally defined across all across all charities. Indeed. So as a consequence, the the initial system that was developed looked at seven variables. Having to do with the finances of the organization’s their financial health into areas one which has been defined as the financial efficiency and the other as the financial capacity of the organizations. And are those definitions that charity navigator devised or those air from somewhere else? Those phrases those are devised by charity navigator. Okay, so fair to say that that was charity navigator one point. Oh, that’s. Exactly what we’re now calling it. Okay, well done. Okay. I have a second career. No. And then you went to you announced two point. Oh, on dh today you’re here to announce three point. Oh, yes. Oh, what? Was what was what was new with charity navigator two point oh, i should clarify right away that we’re changing our terminology slightly right originally to point i was going to be the final zsystems but basically what we what we have learned from the through our research and deciding to go through a change process, we’ve kopperman that there are three dimensions, three critical dimensions we need to look at, so the second dimension brings us to see and to point out that second dimension we call it measures of accountability and transparency, and we have been working on this for a couple of years now, and this summer, within a couple of months from now, it will go live wear. We’ve been putting the information upon our site tabs of information up, but it hasn’t impacted the score the rating score of charities because we wanted to gather it on all charities before we did that. And so this summer, we’re going toe flicked the switch, if you will, and for the first time in our history, our rating system will be two dimensional. It will look at finance as well as accountability and transparency now for the donors that don’t look closely, it’s still going to look the same as it did before. If you type in the name of a chair, you’re going to see stars because the two dimensions air waded into the rating of the charity and that’s interesting waiting i want i want to get a chance to talk about that, too, because you’re measuring variables, then you have to have to wait them. They’re not all equal, okay, there’s a lot behind a couple of stars or several stars. Where do you get the data for cne? Two point. Oh, this the accountability, transparency. Where does that information come from? Well, part of it comes from the nine. Ninety, because for the first time in thirty years, you know the irs has revised the forms partly from the advocacy of the independent sector and other groups like it to have some of those thirty three standards i mentioned on the form, and so today the nine ninety form has much more information on things other than finance things having to do with what are considered best practices, good governance, the ethics of the organization, if you will. And so we are taking advantage of that? So part of the information for accountability and transparency comes from the nine, ninety four, but the other part, which is nufer us and is thie direction we’re going to continue to go in is to look to the websites of the charities because that’s, where the transparency also comes in, how open is the charity to its key stakeholders and how much information isn’t providing openly and the place we want to go is to the website of paris because we’re seeing increasingly that that’s where donors air going toe look, we have the luxury of spending an hour together, so i’d like to get into the sort of the details of some of the work that maybe you don’t get a chance to share very often. And i think, well, i don’t know if people wonder about it, i wonder about it. I mean, you see stars, but and you see a list of people in the, you know, in the about us section on the charity navigator website, what are those people doing? I mean, you’re getting incredible amounts of data from irs sources and now from fifty, five hundred websites that you have to go. Look at how does this all work in your office with zeal? You know, that’s that’s because you’re saying that because they’re all listening, right? Your offices listening. Okay, that aside now well, you know, that was something that was a real mind blower for me coming from running direct service organizations, we have a staff of nine small and so the work is done by our analysts on dh. They gather the information, you know, we have a customized software that they use, and they gather all the data on each of the variables we look at. And, ah, you know, the good news for us up till now is that because the information is fairly straightforward. You need to look at that number in this number over here and pull it in. And then the software does the calculations um, up till now up cn one point. Oh, it took about three or four hours to put up a new charity. And each year it takes about a half an hour latto update. So that’s, how we with the staff of nine, we can do it because it was a very straightforward and very relatively quick calculation to dio going forward it’s not going to be possible to do it that way. Okay? And we’re gonna be talking about the next generation shortly. So an analyst goes to a website. They’re looking for good governance, accountability, transparency what in detail are they looking for? Well, there are only five. There are eighteen variables that we’re looking at in this accountability and transparency section, and i may not be able to rattle off every single one of them. You know that one third of the way, but for the what can you tell us? But for the website, there are five out of the eighteen where we look at the website and so it includes some stuff that wouldn’t be a surprise. Do you post your nine ninety on the website? Do you post your audited financial statement on the website? Do you have your board listed on the website? Do you have your staff leadership listed on the website? Do you have a donor privacy policy stated on your website? Those air, the things that we look at those are the five variables we look at on the website and then the other and then the others are from the ninety okay, do they have to be easily found? Some some sites are a little clunky when things were there, but not so easy to navigate. Is that a factor? We have a five minute rule, okay? Lorts zoho so the notion is if if it’s if we have to go on an archaeological dig, the whole purpose of this is not for charity navigator it’s, because we think that donorsearch should be able to easily access this information as the stakeholders of the organization and if we can’t find it and where the experts said and we’ve gone to all these websites that we can’t find in five minutes, whether it’s there or not, they get a get a no, not there. Now we do have a fallback, which is where developing the capacity for the charities to provide us with links to the information if we can’t find it. So if they say, hey that’s, not fair it’s there, then they can email us the link and will give him credit even though it’s it’s a very, very right. My guest is ken berger he’s president and chief executive officer of charity navigator geever let’s see the, uh three point oh, now you wanted teo announce the next generation and we have some time now before a break. So why don’t you tell us about what’s coming next? Yeah, cn three point oh is when we have a three dimensional rating system and the third dimension is what we consider to be the most important, the most critical that we’ve been striving to develop for years. And that is the results of the work. How is the organization showing evidence that it’s meeting its mission? What? And we define results as it was developed? This term was developed by the gates foundation because the definition of it that is because, you know, people who use words like out comes an impact and effectiveness and so forth that we want to be clear. This is a very open term that includes your activities, you’re outputs as well as your outcomes, all of those things seeing evidence of that and it’s, really we’re looking at results reporting how well and clearly does the organization report its results to its stakeholders on its website? That’s what we’re looking for results versus outcomes on your website i see a little i see references to both and you mentioned both what what’s the difference and what have you settled on? One or the other term? The term we’re settled on is results. Okay? And how does that distinguish from outcomes then? Well, outcomes mean that you have you provide data that shows that you have provided meaningful and sustainable change in the community or in people’s lives. Unfortunately, the reality is in the vast majority of the nonprofit sector, we’re not there. We don’t have that kind of data available. And so we don’t want to create a rating system where we turn around and there’s nobody more there’s, just a small handful. So we want to be realistic about where the sector is today, so we need to also look at they’re outputs and their activities. And there may be some cause is like, if you’re a ballet company, that may be about as far as you’re going to get let’s say so we do aspire further down the road through data from others to tryto get outcome measurement information to actually make a judgement beyond the reporting of the charity. Beyond results reporting and saying ok, is this truly showing evidence that is meaningful and sustainable, we want to give the most credit to those that have that, but we will also want to be pragmatic about the different cause areas and what’s what’s available and that’s very just fair. How does charity navigator intend in three point oto seth results, but that’s again a very vague area, but in the end, you’re coming down to a couple of stars or several stars. How do you how do you do that kind of work? Well, mind you, everything i say now is in the testing phase, so it’s subject to change it’s not been finalized. We’ve set a goal for ourselves to try to have the first prototype of this completed by the end of this year, but again first prototype, and even when we announce it and show it to people, we will continue to tweak it, modify it as we learn and as we tested further, so basically so within that context, i don’t you know, we had we had an original seven questions that we sort of posted on our website while we’ve been testing those and we’re continuously testing and so we’re not. Going with those seven questions, there was, for example, there was a question where we asked, do you admit that you made a mistake and will give you credit? If you admit you made a mistake? We have come to the conclusion that xero point xero non-profits air going to provide that information on, and so we got rid of that one, but basically there are three things we’re looking at. One is, what is your theory of change? Can you explain clearly? What is the problem that you’re trying to solve? And do you have some logic, logic model, if you will, that walks us through how you get from where we are today to where you want to get teo is it’s your road map, if you will. And the second thing we want to see evidence of is data, what kind of data are you gathering to show that you’re on that road and that you’re getting to your destination and maybe even data that shows where we are now, what you’re using as your benchmark toe launch from right, and so and so, and remember, we’re talking data that can include outputs a swell, as on third and probably most important do you adjust? Do you assess as a result of that data? And then do you adjust your work if you are not meeting the results that you were shooting for? So so cn three point oh is based on surveys, surveys that the charity’s themselves are are providing to your emailing them or mailing them a survey and no return the data no house that we’re going ultimately that might happen for one year, what you just said, ok, but ultimately we want to see this information on the charity’s website. This is on the website also, yes. Ok, so in the first year that maybe a grace period you haven’t, i realized provoc only prototype coming by the end of this year with that caveat, though you might start just by having the charity self report, right? Because we know that most charities don’t have this on their website now, but we believe that more and more stakeholders want to see it as do we and that that’s where ultimately will end. So we might say after they give it to us the first year, great job next year, you can’t do it. That way we know you have it. Put it on the website, okay, and that’s. Interesting, because we’re starting toe approach some of the ways that charity navigator hopes to move or nudge the charitable sector, and we’ll get to those in the second half of the show on dh. What other directions those might be. This is tony martignetti non-profit radio. I’m with ken berger. Stay with us after the break, tony’s hoexter. Yeah, you’re listening to the talking alternative network. Are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics. Politically expressed buy-in, montgomery, taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com oppcoll are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. Dahna hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com durney welcome back to the show, it’s, time for tony’s take two at roughly thirty two minutes into the hour this week, my block post irs tells us what good governance means. There are these vague phrases and notions kind of thrown around the non-profit community and actually, ken berger and i are talking about some of them, and i’m helping to keep him out of jargon jail by defining them. He doesn’t know that, but we’re talking about what they mean and that keeps him out of jargon jail. But often these phrases are not defined like transparency and accountability and good governance, conflict of interest, a document retention. I found a neiers document buried on its website that talks a good deal about what these phrases mean to the internal revenue service and so that’s the that’s what this first segment of the post is about helping you understand what i r s thinks these things mean, and there’ll be another post or two in the coming weeks, just to tease you a little bit good governance to irs, that is the broad category, and it means having in place, quote policies relating to executive compensation, conflicts of interest. Investments fund-raising documenting governance decisions, document retention and destruction and whistle blower claims. End quote. So naturally, what are all those things mean? And i did find a couple of those in this week’s post and i’ll go on and talk about more of them and to find more of them in future weeks. That’s all on my blogged at m p g a d v dot com. And that is tony’s take two for friday, the first of july, the year is the year is half over. Can you believe that? No, no. Can i didn’t bring you back out. Kim burger already doing the rhetorical question e-giving sorry. My guest is ken berger. And he does not believe like me, that the years, years half over. But it is so we were starting to talk about some of these ways. That charity navigator would like to see the sector move, one of them being sharing results on the website. What are some other ways that charity navigator would like to see the community headed in home? Well, i think you know, having done this work for a long time, my observation is that there are a tremendous amount. Of really dedicated people who, you know, give their heart and soul to the work. And and so at the same time, i have seen and lived with very closely some real scoundrels that have run non-profits and they can have beautiful staff, but there’s, some real jerks running these places. And so i actually believe that part of the importance of moving toward results and the like is that the ability for an organisation to engage in the kind of shenanigans that some of these organizations engage in will become increasingly hard for them to dio if they are held to a standard of showing evidence of results, and then the other thing is, when you talked about accountability and transparency, i also think that the notion that the more some light there is, the less you know, you know, the the rats sort of scatter, if you will, that that that that there’s a cleansing elements. So i think that part of what charity navigator has always wanted to do is to separate the wheat from the chaff to separate those that are really not in it for the mission from those that are and, you know, that’s. Probably where we get mohr attention in the media than anything else is to is to is to avoid those scams, and we hope that these directions that we’re talking about and many others are talking about the sector moving in well, garner more trust in the nonprofit sector as there’s more of this transparency and mohr organizations of providing mohr information to people about what they’re doing. I mean, that’s the basic premise and that’s very consistent with what iris is looking for. Actually, they believe that asai said in antony’s, tick to the the organizations that have these policies in place bring the sunlight in and are more likely well from irises perspective more likely to be tax compliant, but generally that organizations that are open and transparent are more likely to be run not by scoundrels and honest and charitable way. Yes, exactly right. And this all goes back to your mean the mission of charity navigator is to be a donor guide, so let’s write, i mean let’s, steer donors toward the better charities and away from those that are not so better. And then the second and i would say, almost equally important role that we try to play is to drive more money toa high performing non-profits and that ultimately what that means is that more people in the world are helped more communities are helped because every dollar is spent more wisely than it might have been otherwise, i should have said earlier that we are live and you can call on basque can a question if you like, our number is eight double seven for a tow for one two oh eight, double seven for eight xero for one to zero. If you’d like to ask a question of ken berger can one of the other questions that i asked listeners to answer before the show on, by the way, listeners you’ll you’ll find these poles on the facebook page always before each show, very usually just two or three questions never more than three takes a minute or so to answer, and i always cite the cite your responses on the on the show. One of the questions i asked was what percentage of charity navigator users rely on the site as their sole our primary source of information and our listeners were sort of evenly divided between one to twenty. Percent and forty one to sixty percent. A few about a quarter of people thought eighty one to one hundred percent. Do you? You know, you know the number. What? What is that? How many people are relying on it for their solar primary? It’s rough decision. Roughly eighty percent. And was that about what you expected when you when you polled or was that higher or lower what it was? Hyre and it was one of the catalyst for changing the rating system. Okay, say more about that. When did you pull? First? When i do this data research, it was about i would say it was about eight months ago, but it really it clarified things with the board. It made the board see this more clearly than ever that the urgency of doing this because we had always told our users that looking at the finances of an organisation is part of the puzzle of what you need to consider. And then when we saw that it was being used differently by our our users, we determined that the need to become three dimensional as quickly as we can to meet the expectations of our users was critically important to get going on even faster than we had hoped to do before. So you learned you’re even more valuable even though you were asking people toe use charity navigator and other sources, you turned out to be more valuable than you realized. I’m okay with that. Okay, well, this is the charity navigator. Not this is not a personal assessment. Wait, we have a caller on dh she’s on line one. Hello, welcome what’s. Your name heimans highlight is welcome. Hi. I’m founded organisation were called love one forty six out of new e-giving panic it. I’m sorry. So absolutely charitynavigator. We really appreciate everything you guys were doing. Tio help raise the bar with charities and wait love’s opportunity to challenge ourselves with regard to how we assess our our work. And i wanted to ask, what are some of the other integral aspect of our work that we should look at? In addition, teo impact like when assessing our program? Well, you know, i couldn’t in the brief period of time, we have really get to all of it. But you know our website we try to be transparent with everything. And if you go there there’s a tab on the top there called myth adala ji, and it lists every single thing that we’re looking at. In the financial area. It lists the accountability and transparency information. If you want to learn more about our experiments in the third dimension of results, you can also go to my block site, which is ken’s commentary dot organ, and i keep a running tally of the work that we’re doing in that area as well. Okay, so, listen, so it sounds like you can use charity navigator’s site to learn what they’re doing and sort of get us close to that and sort of pattern yourself your own work. After that loosening, that sounds okay. We’re already actually, if i’m charity navigator, but we left for me to improve ourselves. Thanks very much for calling loose. Thank you. Other callers you are welcome to call and speak to ken berger ate double seven for eight xero for one to zero. So can carry. Navigator would like to see the sector b doing things. Ah, little differently and nudging charity’s a certain way. Why do you feel that charity navigator has the authority to nudge the charitable sector? Well, there are a number of ways. Look at it. One is with the the fact that we have three point three million households in the united states that turned to us, most of whom say where? Their primary source of information, i think there’s an indicator that they want our organization to be in this role. You know, i just related to that i got to say that, you know, having run cherries for a long time. There’s something unique about charity navigator. Even if you compare it with let’s say, guidestar, some of these other groups, we really are an outsider to the sector. And i mean that in the best sense of the term, we are independent that’s why we don’t charge anybody. We don’t charge charities. We want to be a completely independent, objective third party and advocate for donors, and they were not aware of there being anybody else that’s in a comparable role at the scale that we are to try to do that. There are other groups that are linked with trade associations and that’s. Great, you know, any standards that the sector sets for itself. It’s. Great, but they’re also needs to be. And we think it really resonates with the public that there is also this independent body that tries to do these things. And and as i said before, we’re trying to model some of this on some of the standards of the independent sector, if we think they make sense, but we go beyond that, we don’t just rely upon what, what the sector itself, you know, says it should do, because we think that donors have a unique perspective and they need to be advocated for is charity navigator, the consumer reports of the charitable sector. Without violating any trademarks were comfortable being in that universe, okay? And now there are other players in there you mentioned guide star there’s, also great non-profits dot org’s, you’re doing some collaborative work with with i wonder both of those i know great non-profits that organ, you say little about that before for a break? Yeah, well, and then that gets to trying to be a role model. We agree with the authors of forces for good that collaboration is better than competition and should be mohr embraced by the sector. And so we’ve been in discussion with great non-profits and actually, in march, we launched a collaborative effort where are users can now write a review on the charity navigator website and it’s not integrated into our star system, but you can also see how users view the charity, and it aggregates all the reviews that are done anywhere on the internet. So if if somebody writes a review on guide star, you’ll see it here you’ll see the aggregated score of all the users that write a review with great non-profits tool and any other site that great non-profits works with so that’s one example of a collaborative effort that we think is going quite well with guidestar were in ongoing discussions, and we’re exploring ways that we might do some collaborative work together because they have some capacities and analytical skills that we’d love to share and hopefully meet our mutual goal of getting as much information out to teo terrible e-giving community as possible, then there are a lot of other groups that were also in discussion with in this space to keep you out of jargon jail for people who might not know great non-profits dot or ge just in the minute we have before break. And you explain what what that site is about one one way it’s been sort of described very quickly is sort of a yelp for non-profits where anybody who’s been a volunteer, a boardmember a donor, a beneficiary, a client, that’s had some association with the organization can actually write a review and rate the organization, they have a five star system, we changed it to numbers so we don’t confuse our users, but and then they aggregate so you can see the aggregated reviews of all of the people who voluntarily did this sort of crowd sourced. Information. My guest is ken berger, president and chief executive officer of charity navigator. We take a break, and after the break, ken will stay with us, and i hope you do, too. E-giving didn’t think dick tooting getting ding, ding, ding ding. You’re listening to the talking alternate network e-giving. Thank you. Cubine. Duitz looking to meet mr and mrs wright, but still haven’t found the one. Want to make your car relationship as fulfilling as possible? Then please join us starting monday, may second at ten am for love in the morning with marnie gal ilsen as a professional matchmaker, i’ve seen it all. Please tune in and call as we discuss dating relationship and more. Start your week off with love in the morning with marnie allison on talking alternative dot com. Talking alternative radio twenty four hours a day. This is tony martignetti aptly named host of tony martignetti non-profit radio big non-profit ideas for the other ninety five percent technology fund-raising compliance, social media, small and medium non-profits have needs in all these areas. My guests are expert in all these areas and mohr. Tony martignetti non-profit radio fridays, one to two eastern on talking alternative broadcasting do you want to enhance your company’s web presence with an eye catching and unique website design? Would you like to incorporate professional video marketing mobile marketing into your organization’s marketing campaign? Mission one on one media offers a unique marketing experience that will set you apart from your competitors, magnify your brand exposure and enhance your current marketing efforts. Their services include video production and editing, web design, graphic design photography, social media management and now introducing mobile marketing. Their motto is. We do whatever it takes to make our clients happy. Contact them today. Admission one one media dot com talking dot com. Dahna welcome back to tony martignetti non-profit radio my guest, ken berger, president and ceo of charity navigator, can i also asked listeners before the show how much they thought their donors rely on charity navigator and listeners were pretty well split between more than half do fewer than half do, and i don’t know the smallest percentage is only six percent. I think fewer than half don’t use charity navigator, so there seems to be some sort of prevalent use sounds good, you know? You know, one of the one of the challenges is to try to ferret that out as much as we can. You know, if if there are roughly one hundred fifty million households in the united states and we have three million, we still have a long way to go, even though we’re the largest charity rating agency in the country and possibly in the world, i don’t know we still are at the base of the mountain there’s so many people that we hope will have a change of awareness. We think that the vast majority of giving is still almost entirely emotion driven and loyalty driven way think that that emotional, that hard part. Should always be there, but we’re hoping that people will also use their heads and look at some information as well. You’re evaluating fifty, five hundred charities. Do you aspire to evaluate more of those over time? Yeah, we have a long term goal of rating twenty thousand and for the statisticians amongst us that’s eighty five, where eighty five percent of all the revenues in the nonprofit sector go to those twenty thousand over the next five years. We’re shooting for ten thousand, which is where seventy percent of the money goes. So, you know, we want to slowly build towards that. I mean, if this volunteer effort, this wiki style effort that we’re developing really takes hold, it could be, you know, depending on how many people are interested in volunteering to rade organization’s, it could be even more than that if it really catches fire. So this is another of another form of collaboration. We’re talking about collaborating with great non-profits dot org’s, but thiss crowd sourcing and using volunteers? Well, i guess it’s really more volunteers used an actual crowdsourcing, but are you soliciting volunteers? Can people offer their time to help? The short answer is yes, but we have to remember that we are literally building this thing from scratch, and the system is not at all fully up. The volunteers that were using at this point are really more sort of kicking the tires and saying, hey, you know, you should add this to your training program would be good if we have a chat room over here, and the wording on this isn’t clear. So it’s really not toe actually, you use volunteers yet to really rate the charities it’s to test the system that we’re developing. We may not be in a position to really use the volunteers and fully implement this program until sometime in the latter part of next year. So this is sort of the prototype testing face, but we’re willing to and we would love to hear from people. And if if it’s not right now will keep their name and we’ll be in touch with them once we have this ready to go, okay? And of course, the site is charitynavigator dot or ge you could potentially maybe this is your aspirations that have thousands of people doing this work for you. That’s the dream? Yes, and you know, it’s it’s also another way to empower donors and engage them in the process, which is really what so much about what social media and the internet is is giving people an opportunity, tio and the interest, the growing interest in being even more engaged involved in the process and since can mention social media, i’ll drop that you can follow him on twitter. His idea on twitter is at ken’s commentary and also you can follow charity navigator, which is at charity knave. Is that run right? Okay, those are the two twitter ideas for ken and charity navigator. Another collaboration you have is with philanthropy dea on you tell us about that philanthropy. Dea is also a rating organization that is built on the idea of expert reviews, so essentially they will take a group of experts in a cause area and asked the experts which khun b foundation program officers it can be ceos within that cause area who, who amongst your peers or who amongst those organizations you have funded foundation, do you find to be the most high performing in this cause area? They aggregate that information to give a report on let’s. Say top ten or a group of charities that they think meets that criteria. I think they’re doing other things as well. But that’s that’s the part that we were, we are most interested in those discussions. Air very preliminary. They recently were acquired by guide star. And i think guidestar also wants to use that service as a value add for their their current customers clients. Okay, on the on the negative side of charities and charitable giving, you have donorsearch advisories for non-profits that are suspect to say that maybe put it at best. What what are the what is the donor advisory, and how do you decide that one should be issued? We developed this about a year ago, and it was because we found that there are circumstances where something so significant occurs that it goes beyond any rating system. We might develop that there’s something that’s happening with the organization that raises questions about whether any of the information that we can get from them. Self reported information is accurate because so, for example, if the organization’s being investigated by a state attorney general, the organization is in a serious lawsuit where there are questions. About the leadership and, you know, financial mismanagement. What have you, those kind of situations that are so big like that? We think that giving a score doesn’t do justice on until that’s resolved, we put up a donor advisory, so if you type the name of that charity, you won’t see a star. You’ll see donorsearch vise ary and in tow link you to the information that we found about the investigation that’s going on that leads us to say the donors, our advice to you is to take a pause and hold off until we find out how this thing plays out. So you’re not drawing the conclusion for the donors, but you’re giving them all the information for them to draw their own using the primary source material that you have found that raises your suspicion, right? But we are, in a sense, making a partial decision. We have opted not to give them a star rating of any kind because we’re not confident in the information we have just a minute before the break and there’s something else that’s interesting that i’m sorry before the end of the show, really that the charity navigator does and that’s your your annual executive compensation survey. Yes. Executive compensation on irs fray catchphrase popular. What? What is the survey? We take a look at the salaries of the middle large size charities we evaluate of the ceos and we show the trends. What is the average salary on? Then we break it out by different sectors by different sizes of organizations. And then we also highlights some of the extreme out layers on that survey gets a lot of attention. People can find that on the website. Yes, there’s a whole section of studies. And you can find all of that on the website we updated every year. The site is charitynavigator dot or ge. The organization is charity navigator. Its president and ceo is ken berger kayman one. Thank you very much for being in the studio and on the show. Thank you. Thank you for having me, it’s been my pleasure. Next week we’re cultivating and motivating women donors. One of my interviews of the speakers from fund-raising day fund-raising conference here in new york city, which was just last month. I’ll plead replay that interview on cultivating and motivating women donors also in the second half. Of next week’s show, i’ll have holly hall she’s, the features editor for the chronicle of philanthropy, she’ll be with me. She was a guest two weeks ago to question some of the methodology in last year’s e-giving yusa report, and so we’re going to talk about this year’s methodology because this year’s report is out and joining me for that discussion will be representatives fromthe e-giving institute, which sponsors wth e-giving yusa report, so it’ll be holly hall and representatives fromthe e-giving institute, and we also talk about the report’s findings on two thousand ten’s fund-raising and what they mean for your fund-raising this year and beyond, as always, you can keep up with what’s coming up on the show. Sign up for our insider email alerts on the facebook page that you know where to go for facebook and then just the name of this show and you’ll find us while you’re there. Please like the show, become a fan, you can listen to tony martignetti non-profit radio any time on the device of your choice by subscribing on itunes. Listen on your computer, your smartphone, your tablet, you’ll find our itunes archive at non-profit radio dot net. Creative producer of the show is claire meyerhoff, our line producer. Today was janice, the owner of talking alternative broadcasting is sam liebowitz, and this shows social media is by regina walton of organic social media. This is tony martignetti non-profit radio. I hope you’ll join me next friday, one to two eastern here at talking alternative dot com no. Co-branding think dick tooting getting dink, dink, dink, dink. You’re listening to the talking alternate network. Get in. E-giving cubine looking to meet mr and mrs wright but still haven’t found the one want to make your current relationship as fulfilling as possible? Then please join us starting monday, may second at ten am for love in the morning with morning alison as a professional matchmaker. I’ve seen it all. Please tune in and call as we discuss dating relationship and more start your week off with love in the morning with marnie alison on talking alternative dot com. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com. We look forward to serving you. You’re listening to talking alternative network at www dot talking alt-right dot com now broadcasting twenty four hours a day. Do you want to enhance your company’s web presence with an eye catching and unique website design? Would you like to incorporate professional video marketing mobile marketing into your organization’s marketing campaign? 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