Learn About the Issues

A foundational step to philanthropic giving is understanding the mission of the organizations within a given vertical and, more importantly, understanding the social or environmental challenge the charity is trying to alleviate. The Cause Analysis in our reports provides an in-depth guide to each issue, to prime readers on the major forces in play, which we refer to as Mission Indicators. This baseline can help inform your own philanthropic goals and lead you to the most appropriate funding decisions.

“The Most Good” Depends on Context

We all want our donations to do the most good – a definition that varies depending on the values of the funder, the organization and the issue area. For example, some organizations are trying to find radical new approaches to old problems, while other charities want to implement well-proven interventions consistently. We encourage every funder to think about the change they want to help bring forth. Learning about the issues will help clarify those goals.

Underperforming or Underfunded?

Despite our best efforts, the cause of underperformance is not always clear from the outside. Because revenues are divorced from demand and sometimes revenue is restricted in its uses, underperformance of a nonprofit cannot be immediately attributed. The cause of underperformance can dramatically affect the solution. Underperforming programs could suffer from poor program design or lack of funding. The former requires program re-evaluation; the latter requires re-allocation of resources. If fundraising and marketing efforts fall flat, it could be attributed to an ineffective team, or it could result from excessive restricted funds preventing investment in modern fundraising. Again, a single outcome implicates two potential problems, each with distinct solutions. While no organization should continue to throw good money after bad strategies, it is important to honestly assess what is driving performance. This challenge highlights the need for investment in Monitoring, Evaluation, & Learning (MEL) systems. Funders have an opportunity to work with charities to ensure that programs, and the systems to assess those programs, are properly funded to create greater long-term capital efficiency.

Pick a Cause a With Your Heart and a Charity With Your Head

Everyone gives for different reasons. Whether it’s a personal connection or a moral philosophy, the causes we find ourselves drawn to are of a deeply personal nature. Philanthropists must not only be generous, but also humble. The difficulty, sophistication and complexity of charitable work requires talented leadership with a commitment to excellence. We encourage our readers to use this research to bring appropriate analytical rigor to their philanthropic choices.