Monday, February 25, 2008

Welcome to the Carnival: Big Ideas for the Nonprofit Sector

Welcome to this week's Carnival of Nonprofit Consultants! I asked, what's your big idea that the sector should be implementing? And eight bloggers offered some interesting ideas:

Does anyone else have ideas that they wish the nonprofit sector would focus on? Share them in the comments!

1 comments:

Kate Barr said...

My nomination is to declare 2008 the year that the program service-administrative cost ratio formula became irrelevant. Yes, the good old 70%-30% ratio has been declared officially useless in identifying whether or not a nonprofit organization is effective in accomplishing its mission and helping the community. Most readers of these blogs have probably been beating their heads against the wall about this anyway. I read a lot of research reports and I have never read one that demonstrated that the expense ratio is a clear indicator of the quality of programs or management, or impact on the lives of people. One reason why we continue to chase this argument, though, is because the ratio is prominent, well known, and easily calculated. We need a two-step retirement plan. First is to jointly stop using the ratio as a way to distinguish our organizations from others, in an unhealthy type of competition, as in “our administrative ratio only is 5%, so your donated dollar will go farther with us.” The second is to find a better way to convey the quality and effectiveness of the work that you do, which requires a real method of evaluating and communicating the programs and impact on clients. So don’t be irrelevant – join the movement.