Toward a Robust Marketplace for Philanthropy

Beyond such informal — and often unreliable — sources of information as word of mouth and marketing brochures, facts about the effectiveness of nonprofit organizations are remarkably elusive. The problem is compounded by the complexity of the philanthropic impulse, with givers potentially motivated by a host of factors other than having an impact. Contributing to a noble cause, pleasing friends, and habit each can play a larger role in giving than whether an organization actually makes progress toward accomplishing its goals.

“The stakes for increasing the effectiveness of philanthropy are very high,” Harold said. “We’re not going to solve complex problems like climate change or AIDS unless we’re much more serious as a sector about getting resources where they can have the most impact.”

About The William and Flora Hewlett Foundation
The William and Flora Hewlett Foundation has been making grants since 1967 to help solve social and environmental problems at home and around the world. The Foundation concentrates its resources on activities in education, the environment, global development, performing arts, philanthropy, and population, and makes grants to support disadvantaged communities in the San Francisco Bay Area. A full list of all the Hewlett Foundation’s grants can be found here.

About McKinsey & Company
McKinsey & Company is a management consulting firm that helps many of the world’s leading corporations and organizations address their strategic challenges. The Social Sector Office works with global institutions and philanthropies to address chronic, complex societal challenges in health, education and economic development. With consultants deployed in more than 40 countries across the globe, McKinsey advises clients on strategic, operational, organizational and technological issues. For eight decades, the firm’s primary objective has been to serve as an organization’s most trusted external advisor on critical issues facing senior management.