Each year, about $300 billion in philanthropic giving is distributed to more than one million nonprofit organizations in the United States. While these organizations address some of the most challenging issues of our time and provide essential services to those in need, there is no way to gauge if resources are going to the highest performers. Giving decisions often flow as much from the heart as from the head, and donors typically have limited information about social issues and how best to address them. This paper aims to increase our understanding of the information available today, and to identify opportunities to improve information transparency, access, quality, and utility.
The nonprofit marketplace lacks the robust flow of timely, accurate information that is a hallmark of high-performing markets such as stock exchanges, commodity markets, or eBay. To bridge this gap, the sector must capture, analyze, distribute, and use information on nonprofit organizational performance and social impact more effectively.
The William and Flora Hewlett Foundation has partnered with McKinsey & Company to propose a path to a stronger nonprofit marketplace. This discussion paper summarizes our perspectives on how the nonprofit sector might improve the flow of information over the next 5 to 10 years. We hope this paper will spur a lively dialogue among nonprofit organizations, foundations, individual donors, and the many intermediaries supporting the sector. Making the kinds of changes we are proposing is a huge, multi-year challenge and one that will require significant collaboration among a variety of stakeholders.
> read more at givingmarketplaces.org