Practice of Philanthropy
The Center for Effective Philanthropy focused on using data to help foundations improve their grantmaking. Kevin Bolduc, the Center’s Vice President for Assessment Tools, presents findings from phase I of CEP's Foundation Strategy Study. Photo by Richard Howard, courtesy of the Center for Effective Philanthropy.
Information available to donors to help them make smart decisions about their giving is scarce, unreliable, and often only loosely related to the actual social impact that nonprofits achieve. Individuals and foundations donate more than $300 billion each year to nonprofit organizations in the United States alone. And yet, there are few places for donors to get useful information about which organizations are most effective in a given field. To help donors make smarter decisions and direct their resources to the most effective organizations, the Foundation has devised three strategies to improve the practice of philanthropy:
Improving the marketplace for effective philanthropy. Our premise is that, all other things being equal, the more information donors have about whether organizations are making a difference, the more funding strong organizations will receive. The Foundation has spent several years, with mixed results, trying to develop systems to help donors assess whether an organization is achieving its stated goals. For example, the DonorEdge initiative of the Greater Kansas City Community Foundation provides detailed information about the goals, strategies, and results of nonprofits in the Kansas City area. Local donors are then able to use this information to inform their giving decisions.
Supporting institutions that educate donors. Educating individuals and Foundation staff about planning, evaluation, and other effective philanthropic practices will help them make wiser decisions about funding. The Foundation-funded program The Philanthropy Workshop West is widely recognized as one of the best donor education programs in the country. In 2007, it completed its sixth year of training donors to be more effective grantmakers. The Philanthropy Workshop West is now exploring ways that it might reach larger numbers of potential philanthropists.
Developing and sharing knowledge about philanthropy. High-impact philanthropy requires gathering and disseminating knowledge about the field. Our grantee, the S
tanford Social Innovation Review, publishes major studies and important debates about philanthropy. Its editorial quality and influence in the field remain strong.
Practice of Philanthropy Grants authorized in 2007.
2008 Goals
- Share the findings from McKinsey’s research on the nonprofit information marketplace. Create a new Web site to capture and share feedback from nonprofit leaders as well as from banks, financial advisors, search engine companies, and social networking site
- Collaborate with financial institutions to study donor needs and behavior
- Support The Philanthropy Workshop West in executing its new strategic plan
