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“Philanthropy Measures Up,” a Report Released Today at the World Economic Forum, Challenges Global Leaders to Increase the Effectiveness of their Philanthropic Dollars

In line with the theme of Davos 2003, “Building Trust,” “Philanthropy Measures Up” aims to create a stronger bridge between the non-governmental and private sectors by encouraging more effective measurement of the impact of social programs

(To view the entire report, click here)

January 22, 2003

Davos, Switzerland (January 22. 2003) - In response to an increasing demand from donors, government and non-governmental organization’s alike, the Benchmarking Philanthropy Task Force of the World Economic Forum’s Global Leaders for Tomorrow today released a report titled “Philanthropy Measures Up.” The stark reality is that less than 50% of donors measure the effectiveness of their giving, yet there are tremendous innovative initiatives – both highly theoretical and fantastically concrete – to measure the impact of philanthropy. This report is the most comprehensive report to date that covers best practices in philanthropic giving, an analysis of various models, and catalogues resources that the any Donor/NGO can pursue to tailor their own systems and make them more effective.

Trust is theme of World Economic Forum Annual Meeting 2003

The Gallup Organization’s poll conducted in conjunction with this year’s conference revealed some interesting facts: NGO’s and Education Systems were ranked nos. 2 and 3 (behind the military) in terms of holding the trust of citizens. Meanwhile, global and large national companies are among the least trusted institutions on the planet, ranked 15th and 16th out of 17 institutions rated (national parliaments and Congresses were last). One of the most promising bridges between the respected institutions of NGO’s and education systems and global businesses is philanthropy: the voluntary transfer of resources from private individuals, trusts and foundations, and corporations to NGO’s, educational systems and public-private initiatives. In the spirit of the mission of the World Economic Forum, “Philanthropy Measures Up” seeks to accelerate the development of that bridge by providing a collaborative framework for leaders from business, NGO’s and government to work together to boost the amount and impact of philanthropy around the world.

Most comprehensive guide to date of measurement approaches

“Philanthropy Measures Up” catalogues and compares the 20 most innovative initiatives in the field of measuring philanthropy. The report breaks new ground by providing donors with a guide to a broad range of measurement approaches, fresh analysis of those approaches, and best practices. The 85 page report also presents some practical tools to help philanthropists better gauge the performance of their own grant-making and further tailor their own systems. The approaches described range from the more traditional models of outcome-based measurement to the newer “venture philanthropy” models and contain something for every philanthropist, big or small, to put into action.

Liavan Mallin, Head of the GLT Task Force, Chairperson Onemade.com with fellow GLT colleagues, Jack Hidary, Chairman Vista Research, Edward Mallinckrodt, Founder & CEO Root Capital, Marc Benioff, CEO Salesforce.com, Trevor Nielson, CEO Casey Foundation and Kim Samuel Johnson CEO, Samuel Family Foundation initiated this report, the goal of which Liavan says “is to assist donors in measuring the impact of their giving, to advance the field of research in this arena, and to encourage a more effective allocation of global philanthropic resources towards constructive change. “Philanthropy Measures Up” should provide world leaders with a framework to support the development of measurement mechanisms that increase philanthropy’s effectiveness and transparency and reduce transaction costs for donors and NGO’s alike. We hope the development of such mechanisms will increase the amount and impact of philanthropy around the world.”

What’s in the report

Part I of “Philanthropy Measures Up” provides an overview of the field of measuring philanthropic impact by providing a brief catalogue of over 20 selected measurement approaches and resources. Part II provides a summary of Best Practices for measuring impact drawn from those profiled in Part I of the report. Those Best Practices include: Participatory evaluation is critical; Don’t let measurement prevent innovation and risk taking; Evaluation should be a learning tool for nonprofits and grant-makers alike; and Know your audience, and pick a measurement approach to meet their needs. Part II also includes more detailed analysis of one of each major form of measurement methodology: Quantitative Results (The Roberts Enterprise Developments Fund’s Social Return on Investment (“SROI”) model); Performance Measurement (New Profit Inc.’s adapted Balanced Scorecard); and Comparative (The Center for Effective Philanthropy’s Grantee Perception Report).

Said Liavan Mallin, “In conclusion, we believe that the vision of developing a more effective, transparent and market-driven system for measuring philanthropy is attainable in the long term, but will come from bottom up experimentation and dialogue with non-profit practitioners rather than top down dictation. It will also be comprised of a variety of approaches. The increased effectiveness and reduced transaction costs of such a “system of systems” would meet the original goals of the GLT Benchmarking Philanthropy Task Force: to increase the amount and impact of philanthropy on a global scale. We hope this report will assist in the hot debate on the topic of how to measure philanthropy and by highlighting the strides that are being made in this area increase the amount and impact of philanthropy around the world.”

The World Economic Forum is an independent organization committed to improving the state of the world. The Forum embraces new challenges by developing initiatives which support its core principles and values, which are to: provide a collaborative framework for world leaders to address global issues; promote entrepreneurship in the global public interest; maintain a non-partisan and independent position. The World Economic Forum’s strategic vision is to be a leader in identifying strategic issues and to provide a platform for decision-makers to effect constructive change.

The Global Leaders for Tomorrow are young (under 43) but proven leaders from business, politics, the arts and civil society. The members of the GLT community demonstrate a commitment to addressing issues beyond their immediate professional interest. GLTs are global decision-makers already holding positions of considerable influence and responsibility. Each year 100 outstanding international leaders from business and society are selected by the Forum's Management Board. The active members of this task force include Liavan Mallin, Task force Head, Chairperson Onemade.com & Member Governing Board & Board of Trustees Dublin City University , Jack Hidary, Chairman Vista Research & founder of the Jack D.Hidary Foundation, Marc Benioff, CEO, Salesforce.com, Suzanne DiBianca, Executive Director, Salesforce.com/foundation, , Kim Samuel Johnson, CEO of Samuel Family Foundation, Edward Mallinckrodt, CEO & Founder, Root Capital and Trevor Neilson, CEO , Casey Foundation. “Philanthropy Measures Up” was edited by Jason Scott.

Liavan Mallin
Chairperson, GLT Task Force Philanthropy
Tel US 301-5364781
Tel Irl ++353-87-2302731 Email : Liavan@Onemade.com
Lmtsm@aol.com