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The truth and nothing but the truth

A legacy gift is an investment not just a donation, so before investing in the future, prospective donors want an honest view of how a charity spends its money. But what is honest?

Dan Pallotta (who you might have heard at the IoF Convention) argues for a full degree of honesty by comparing outcomes rather than giving simple ROI and admin/governance costs.  I have to disagree.  Donors want a plain and simple answer to “how much goes to the cause?” to maintain confidence in their decisions to give.

Taking Dan’s approach how could five INGOs compare the effectiveness of the tents they provided to Haiti after the earthquake? Do you measure the number of tents, the number of people in the tents, the size of the tent, or the speed in which it arrives?

Let’s give donors simple performance statistics in an honest fashion to increase trust and confidence.

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