Results,Transparency and the Realities of Present-Day Philanthropy

"We just met with a foundation the other day, and that's what piqued their interest — the outcomes. A lot of donors are saying, 'If you can't show me the difference my dollar makes, I'm probably not going to give you that next year.' "

- Joshua Hale, Big Shoulders Fund Executive Director

"...over the years there's been an increase in requests to understand the tangible outcomes. Now [donors] say, 'Give me a specific story, give me a quantitative result.' "

- Lorrie Lynn, United Way Director of Research, Planning and Education

Its no secret that nonprofits are feeling the pinch and bracing for more as they face cuts in both public and private funding this year and next.  Additionally, funders of all types are demanding more information about the impact that their dollars achieve.  These trends are highlighted in two closely related articles by Christina Le Beau in this week's edition of Crain's Chicago Business.

The first article, Adapting to New Realities, underscores the importance of building strong relationships and contingency plans to blunt the effects of economic downturns on funding.  It also explains that an organization's ability to demonstrate measured and meaningful results is critical when it comes to attracting and retaining funds.

The second article, United Way Execs Talk Transparency, is an interview with leaders from the United Way of Metropolitan Chicago.  It reinforces the importance of outcomes measurement, noting that philanthropists with limited resources want to invest in specific results, not just "good charities."