Nonprofit overhead seems to be the most popular way to evaluate nonprofits, although even watchdogs that made program and expense ratios a focus are trying to come up with other ways to measure an organization’s effectiveness.
Jason Coupet, assistant professor in the department of public administration at North Carolina State University, and Jessica Haynie, a third-year doctoral candidate, poke holes in the idea of nonprofit overhead as a way to rate a charity but also come up with alternatives. Their paper titled “Toward a valid approach to nonprofit efficiency measurement” first was published in the journal, Nonprofit Management & Leadership.
The duo used financial and operational data to rank the efficiency of hundreds of Habitat for Humanity affiliates using the overhead ratio but also employed two economic models that measure efficiency: Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA).
The 2018 Global Trends in Giving Report surveyed more than 6,000 donors in 119 countries. It asked donors of all ages and backgrounds about everything from giving online and social media to crowdfunding, monthly giving, #GivingTuesday, and much more.
Heather Mansfield, founder of Nonprofit Tech for Good, and Jim LeFevre, senior director of marketing at Public Interest Registry, talk about just a few of the data points in the study that nonprofits should take note of ahead of this year’s giving season.
There are statistics galore in the 28-page report, which breaks down responses by gender, generation, gift size, religion, and trends by continent, and concludes with 25 key findings. Some of the new questions in this year’s report include tribute gifts, how crowdfunding might affect the size of a gift donors make to a charity, and whether they use Facebook fundraisers.
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