Posts Tagged ‘transparency’

 

Transparency on Trial?

Posted by dennis on October 22nd, 2009

[Reposted from the Huffington Post, 10/22/09]

A number of commenters have asked me to weigh in on the lively debate that emerged from David Roodman’s Microfinance Open Book Blog about transparency–not only on Kiva, but really about all attempts to make philanthropy more direct, starting with the pioneering efforts of Save the Children in 1940.

I’ve hesitated about weighing in–mostly because we have shared war stories, best practices, and worst moments with our friends at Kiva. We know that they are classy folks who know how to work constructively with feedback. And no one has written more openly than Matt Flannery has about the ups and downs of starting a new organization. So I have wondered what we could add to the debate.

Upon reflection, though, I do want to add a couple of things. It’s partly because, as I reflect on this nascent space of direct philanthropy enabled by technology–including GlobalGiving, DonorsChoose, GiveIndia, and others–I think we have a collective responsibility to keep pushing the envelope on transparency and authenticity of the experience.

Let’s face it: since the space is so new, we don’t always know what works. So we keep trying things, based on what we think will work. Sometimes we get it right, and often we find we can improve.

Overall, we provide an enormous amount of information and transparency to our users about the organizations and projects on the site. We try to put the salient information on project home pages and provide links to more detailed information. At the beginning, we provided far too much information on the home pages. Users told us they couldn’t see the forest for the trees – they felt overwhelmed and were paralyzed into inaction. Over time, we have gotten better in achieving a balance, and users tell us that they like our presentation much better now. Most of them feel we are giving them what they want.

But we can always do better.

For example, though the overwhelming majority of projects on the site are run by the equivalent of US 501(c)3 non profits, a few are run by self-help groups and community coops, which are sort of a hybrid type legal form. We even work with a handful of socially oriented for-profit companies that represent a new wave of entrepreneurs trying to leverage business principles to promote the common good. According to IRS guidelines, all of these different organizations are eligible to receive donations as long as they are carrying out a charitable purpose that is not possible under normal market conditions. Regardless of their structure, all are subject to our rigorous due diligence process. When these organizations list projects on GlobalGiving, we monitor their expenditures to make sure they are not making a profit from the donations.

We’ve received feedback that we should make this information more prominent on the project pages to make it clear to potential donors. That is a fair point, and we have in fact been considering making these categorizations visible, including a “for-benefit” category for these organizations that aren’t equivalent to US 501(c)3s. My guess is that we will find that some donors are specifically attracted to this type of organization.

One of the positive things about the web is that we can get feedback – and respond to it – much faster than we could imagine back in the 20th century. Case in point: we recently piloted getting beneficiary feedback (via text message) in Kenya. We ended up with an incredibly rich dialogue between beneficiaries and donors that ultimately led to the beneficiaries moving on to work with another organization, and the original organization closing up shop.

We’re constantly looking for more ways to get that feedback more quickly, and from more people. We even put in place what may be the first-ever philanthropic guarantee – the GlobalGiving Guarantee. This give donors a powerful way to tell us if they are unhappy in any way, and signals to them that we are serious about listening. And it gives us a chance to address the issue not only for that donor, but for all donors.

I admire how Matt and Premal have responded to the debate over at Kiva. Their response sets an admirable standard for speed and transparency. (And in that context, if you have any ideas about how we could get more feedback from more people faster, please let us know…!)

4 Stars – and Proud of It!

Posted by alison on September 7th, 2009

It’s with pride, and a virtual bang of the gong (banging on a real gong is the way we celebrate achievements and good news in the GlobalGiving office) that we announce some exciting news:  GlobalGiving has been awarded a 4-star rating by Charity Navigator!

Charity Navigator 4 Star RatingCharity Navigator currently “rates” over 5,000 501(c)3 organizations in the US by examining a charity’s financial health, and then awarding an overall rating – between 0 and 4 stars.  While sometimes criticized for focusing too narrowly on financial ratios that do not evaluate the “big picture” and outcomes of an organization’s work, Charity Navigator remains the most-utilized evaluator of charities, and many donors factor these ratings into their giving decisions.

In 2008, the first time GlobalGiving was eligible to be evaluated (4 years of IRS Form 990s are required to be considered), we scored a respectable 3 stars. This year, based on updated financial information, we were excited to learn that we have earned the 4-star rating based on (in Charity Navigator’s words) “(its) ability to efficiently manage and grow its finances.  Approximately a quarter  of the charities we evaluate have received our highest rating, indicating that GlobalGiving executes its mission in a fiscally responsible way, and outperforms most other charities in America.  This exceptional designation from Charity Navigator differentiates GlobalGiving from its peers and demonstrates to the public it is worthy of their trust.”

GlobalGiving is committed to extremely high standards around accountability, fiscal responsibility, and transparency, and we are proud of what this rating represents.  Especially during these tough economic times, we know that donors are giving extra thought to how they spend their donation dollars – and we hope this external validation gives them even greater confidence that they are making smart choices when they give to a project on GlobalGiving.

We appreciate your continued support!