Informing Donors About Nonprofit Performance
February 26, 2009

Back in December, I wrote that the one thing I wanted to know before donating to a nonprofit was whether it was achieving its goals. Since it's hard to find that information, I was happy to see that Charity Navigator is exploring how to integrate data on outcomes — progress in achieving goals — into its notoriously distorted rating system for nonprofits. This has the potential to increase the total social good produced by the sector: Rating nonprofits based on outcomes will direct more donor dollars to the nonprofits with the greatest positive impact and will encourage all nonprofits to improve their outcomes.