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CCIF Methodology

Canadian Charity Impact Fund Methodology

For around 100 diverse, individual Canadian social service charities, Charity Intelligence (Ci) and Success Markets Inc. (SMI) have quantified the amount of effective help delivered to beneficiaries in a consistent manner using dollar-based figures. These by-charity value estimates are presented in the form of total benefits per donation dollar as Social Returns on Investment (SROI) ratios. These are broken down further into benefits accruing to clients and those to society at large. They provide estimates for total benefits that are highly likely and, above this, include both conservatively estimated and lower probability upside amounts.
Around 70 of these results possess a great deal more depth than the remainder. They show that likely SROIs for these better-than-average charities range from 0 to 20 with potential upsides of up to 50. This is significant given evidence indicates that most Canadian charities have SROIs in the range of 0 to 2 with an average upside of 4.
Ci & SMI results come from systematically using standard program evaluation methods and emphasize consistency of SROIs across all charities. We have used around 100 external studies as sources for values of outcomes and baseline and program success rates across a wide variety of different sectors and interventions. In addition, we can replicate the results of around 5 external SROI studies completed by other analysts. Main drivers for SROI results are presented and several charities and charity evaluation experts have provided open letters stating that SMI estimates and ranges are reasonable, comparable and congruent with other evaluations. In addition, several financial market experts have stated that SMI estimates are similar in quality to information regularly used in financial markets.
Our SROI magnitudes make sense for the right reasons. Rough improvements in quality of life for charity clients can be reasonably estimated with boundary ranges whose widths make sense.
Charity analyses include both solid baseline SROIs and additional possible SROIs whose magnitudes are less certain. Both likely and possible SROI magnitudes and their causes can be explained. Some reasons for SROI results are presented in Table I. SMI work emphasizes the rough size of what is currently known and unknown with varying levels of certainty. Some sources of and reasons for different information uncertainty levels are presented in Table II.

 

https://www.canadahelps.org/en/charities/charity-intelligence-canada/” target=”_blank” rel=”noopener noreferrer Click here to donate to the CCIF and select option 2 on the dropdown menu.

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Syrian Refugee Crisis

Helping Syria’s Refugees


Photos of Aylan Kurdi’s tragic drowning hit home the ongoing humanitarian crisis facing Syrian refugees. Yes, this is a time for Canada’s government to cut red tape and fast track refugees’ settlement. To date, Canada has committed to resettle 11,300 Syrian refugees by 2017[1] (both government sponsored and private sponsored) – the sooner, the better – and has contributed $403.5 million in humanitarian aid. file:///C:/Users/User/Documents/Charity%20Intelligence/Research/Syrian%20Refugee%20Crisis.docx#_ftn2 [2] Canada can do more. September 19, 2015 Update: The Canadian government announces it will speed up the refugee processing in an effort to resettle 10,000 Syrian refugees by September 2016, 15 months earlier than anticipated, at an additional cost of $25 million. Update December 2, 2015: Canada’s new government will welcome to Canada 25,000 Syrian refugees by February 2016.

  • Note: Doctors Without Borders is not participating in the Canadian government’s matching donation plan. See below for more information.

    . Furthermore, the lack of financial aid to date has led to cutbacks in food and welfare assistance to these refugees. These refugees have been living off what they could bring out of Syria. These resources are quickly depleting. It is these 4 million refugees that could likely benefit the most from Canadian donations, particularly the largest groups in Lebanon and Jordan.

    file:///C:/Users/User/Documents/Charity%20Intelligence/Research/Syrian%20Refugee%20Crisis.docx#_ftn1 Donations best meeting refugees needs: Another point for donors to consider is providing the humanitarian aid the refugees are asking for. A 2012 survey of Syrian refugees living in Lebanon[2] reported that what they wanted most were food (75%), shelter (69%), and household items/non-food items (64%) like cooking fuel, stoves and pots. Fewer refugees reported the need for education (26%) or mental health counselling (12%). Most refugee families have remained together; children are together with their parents, their most important support, and are less vulnerable. While there are many charities focused on supporting children, this is not the greatest need as self-reported by Syrian refugees. Similarly, funding education is popular with Canadian donors. Again, not the greatest need according to the refugees themselves.

    Nepal Earthquake



    In response to the major earthquake in Nepal, at least 15 Canadian charities are fundraising to provide disaster relief. Natural disasters are a time when Canadians respond generously. Given the urgency to quickly get aid there, donors do not have much time or information to assess these giving decisions. The sheer number of charities fundraising gives donors choices. And your choice matters. Different charities have different areas of expertise and different track records in delivering disaster relief. This donor brief is to help you give intelligently.
     
    At this time, please remember disaster relief is very different from international development. Disaster relief requires speed and expertise to most efficiently meet the needs of Nepal. This is not the time to send a goat.
     
    In disaster relief, we feel it is important to help all people. Our recommendations emphasize charities working with all in need, not just women or children.  With earthquakes, the highest priority emergency needs are typically medical, shelter and debris removal. After the emergency, there is a need for infrastructure rebuilding.

    – specialist in medical emergency as local hospitals are over-whelmed and many people are injured, requiring immediate medical care beyond first aid
     
    – expertise in shelter and on the ground in Nepal

    In our assessment of the limited facts at this time, Nepal’s needs are moderate relative to the Haitian Earthquake of 2010 and in-line with the Philippines Typhoon. The earthquake affected a much smaller population of people than the natural disasters in the Philippines and in Haiti. We anticipate strong community resilience to build back, making disaster relief donations effective.

    Each natural disaster is horrific and needs to be assessed individually on where the need is greatest, the magnitude of the devastation. This table provides quick context for donors.


     
     
    Donors Tips for Giving to Nepal Earthquake

    1. Give to a registered charity. Donating on-line through charities’ websites by-passes scoundrels on the street who have exploited disaster situations in the past. That said, if you have family in Nepal, give directly to those you know in need. Canada’s local Haitian and Filipino communities were highly effective in quickly getting aid to their families at home.

    2. Disaster relief requires different giving. Disaster relief is radically different from international development. In Nepal’s situation, aid workers are assessing the needs. In past earthquake disasters, the greatest needs have been medical expertise, ruble removal (opening roads and clearing sites), and shelter.

    3. Hold charities accountable. Donors need to give now for the emergency response without much information. Most charities are accountable and publish reports on their response 6 months and one year after the disaster. These reports give donors essential information about the emergency performance of each charity. Charity Intelligence reads these reports. These reports provide an excellent track record of a charity’s disaster response. Of great interest is how quickly a charity spends donations. In emergencies, speed matters. Each charity has a different balance between emergency relief and long-term development aid.

    From this assessment of Nepal’s situation and prior research, these are Ci’s Top Picks:
     
    http://charityintelligence.ca/charity-details/81-doctors-without-borders Doctors Without Borders Canada has rapid fast response time. In Haiti and the Philippines typhoon, Doctors Without Borders was first on the ground. Doctors Without Borders focuses on emergency medical aid. In earthquakes, medical needs typically require setting broken bones, amputations and surgery, far surpassing basic first aid. With the number of people reported injured, Nepal’s local hospitals are overwhelmed with injured people.

    Doctors Without Borders does emergency work fast. It spends most of the donations it receives within 6 months of the disaster; in the Philippine disaster relief, it spent 52% of donations in the first 3 months, and a total of 77% of donations in the first year. After the emergency response, Doctors Without Borders hands over its field hospitals to local health services and leaves.

    Doctors Without Borders has taken a contrarian approach not to launch a Nepal fundraising campaign. Its relief efforts are funded by unrestricted donations. This gives Doctors Without Borders greater flexibility in using donations to respond to other emergencies.
     
    http://charityintelligence.ca/charity-details/33-world-vision-canada World Vision Canada, even though it is Canada’s largest charity and with a primary focus on international development, responded quickly and efficiently in disaster relief in Haiti and the Philippines. In response to the Haitian earthquake, World Vision spent 31% of donations in the first 6 months and 55% of donations in the first 9 months #_edn1 [i].

    Before the earthquake, World Vision was on the ground in Nepal working in three communities: Butwal, and Doti East and Achham East on the far western border (not in the epicentre zone). World Vision has been in Nepal since 1982. We believe this local knowledge will get aid quickly where it is needed most. World Vision is targeting its efforts on 100,000 people in the affected areas of Lamjung, Lalitpur, Gorkha and other parts of the Kathmandu Valley. World Vision will focus on providing temporary shelter and distributing non-food items.
     
    In prior disaster relief efforts, World Vision provided direct cash transfers to victims. Research shows this is a highly effective and cost efficient way to deliver emergency aid. Unconditional cash transfers to the people affected by the earthquake lets them buy the relief items they need. Cash transfers get aid where it is needed faster than charities can arrive in the communities to assess the damage and appropriate response. Also direct cash helps local markets and local producers.
     
    Another highly effective program we will be listening for is paying people to help get the cleanup done. This worked well in the Philippines, gets debris cleared and roads opened, and helps communities get back on their feet.
     
    http://www.unhcr.ca/” target=”_blank” rel=”noopener noreferrer UNHCR – the UN Refugee Agency. In past disaster relief responses, providing shelter was one of the most pressing needs. In Haiti, 4 years after the earthquake, 250,000 people still live in tarp camps. This homeless situation is a disaster long after the earthquake. Providing shelter is essential. UNHCR has expertise in delivering temporary shelter. This will be critical before Nepal’s rainy season between May and September. UNHCR is already on the ground in Nepal.
    UNHCR is a new recommendation and, at this time, Charity Intelligence does not have a history of UNHCR’s disaster response. We will be watching with interest to see if UNHCR deploys the innovative IKEA Foundation shelter huts in Nepal rather than UN tents that typically only last 6 months.
     
    Canadian Charities Fundraising for Nepal’s Earthquake Recovery (to be added to).

    housing or shelter.

    Source: Human Development Index Nepal 2012.
     
    International Response
    The government of Nepal has called for international assistance to which there is growing response. So far, governments have pledged financial support; Canada has pledged C$5 million, UK C$9 million, the US $1 million, New Zealand $1 million, Australia $5 million, with the governments of India, Sri Lanka, and China sending aid.
     
    Getting the aid into Nepal is hindered by the small airport at Kathmandu and significant after-shocks still affecting the area. While some foreign aid has landed, many relief efforts had to turn back due to airport congestion. These efforts are waiting in neighbouring countries to move into Nepal.


    #_ednref1 [i] World Visions expects to release its donor accountability report on its response to Typhoon Haiyan in summer 2015.

    About Charity Intelligence: Charity Intelligence researches Canadian charities for donors to be informed and give intelligently. Charity Intelligence’s website posts free reports on over 600 Canadian charities, as well as in-depth primers on philanthropic sectors like Canada’s environment, cancer, and homelessness. Today over 185,000 Canadians use Charity Intelligence’s website as a go-to source for information on Canadian charities and have downloaded over one million charity reports. Through rigourous and independent research, Charity Intelligence aims to assist Canada’s dynamic charitable sector in being more transparent, accountable and focused on results.
    Be Informed. Give Intelligently. Have Impact.
    http://www.charityintelligence.ca/ www.charityintelligence.ca
    Charitable Registration Number: 80340 7956 RR0001

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    Charity Gift Catalogues

    text-align: left; Charity Gift Catalogues.  So Much Choice…How to Pick the Best Christmas Charity Gift
    text-align: right; Greg Thomson
    text-align: right; December 16, 2014
    text-align: right; updated October 27, 2016

    The charity gift catalogues are arriving in the mail, and you are calling in with questions. What’s better? To buy a goat or a soccer ball? Maternal health or biscuits? Charity gift catalogues showcase dozens of gifts. Some of these are nice gifts, some of these gifts are proven to save lives. 
    Charity Intelligence looks for demonstrated impact when choosing which charities we recommend, so to understand the demonstrated impact of international aid programs, we looked at studies compiled to help evaluate development projects. The best evidence we’ve found is the Abdul Latif Jameel Poverty Action Lab  (J-PAL) ( http://www.povertyactionlab.org” target=”_blank www.povertyactionlab.org), and Innovations for Poverty Action (IPA) ( http://www.poverty-action.org” target=”_blank www.poverty-action.org).
    If you are looking through the gift catalogues, we recommend these Best Buy items found to be most effective in J-PAL and IPA impact research:
    Deworming medication: If you want to help kids attend school, deworming medication has proven to be 20 to 700 times more cost effective than scholarships, uniforms and direct cash transfers in increasing school attendance in southern Africa.
    https://shop.unicef.ca/anti-infection-tablets” target=”_blank Best Buy: UNICEF’s “anti-infection” tablets, $20 for 450, $0.04 per pill. The tablets  protect children from worms and potentially deadly intestinal infections. 
     Here’s a link to buy UNICEF’s deworming tablets https://shop.unicef.ca/deworming-tablets
    2016 Gift Catalogue Prices offered by highly-rated Canadian international development charities with gift catalogues offering deworming pills and/or bed nets.




     

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    Moneysense Charity 100

    November 28, 2014

    Moneysense has released its 2015 Charity 100, rating Canada’s largest 100 charities. We applaud the fact that Moneysense is providing information to help Canadian donors.  However, we would like to point out a couple of key differences in methodology between the Moneysense grading system and the Charity Intelligence star ratings.
    A difference of opinion: Does a charity’s impact or governance matter more?
    At Charity Intelligence we believe that the most important metric that charities should be assessed on is impact. The vast majority of the 550 charities we’ve analysed are not reporting their impact. As an interim proxy, we’re grading charities on how well they report preliminary impact measures. Charity Intelligence allocates 40% of a charity’s overall rating to the public reporting of these impact measures. These reporting grades show great diversity among charities with only 3% scoring A+, 15% scoring A- or better, and over 10% scoring between a D+ and F. Charity Intelligence does not assess a charity’s governance since we haven’t found clear tools that would indicate “good” or “bad” governance.

    The Moneysense grading is skewed by its Governance Grade. Moneysense grades a charity’s governance based primarily on a survey of charity governance practices.  On this governance metric, 75 of the 100 charities score an A+. Only 16 score less than an A-. These stellar scores would show charity governance is strong in Canada’s largest 100 charities. These high marks raise the overall score of most charities.
    Funding reserves. Both Moneysense and Charity Intelligence feel that the amount of money a charity already has is important information for donors. Some charities raise money because they can, not because they have an immediate need for donations to run programs. Increasingly in Canada, charities are raising donations for endowments and long-term campaigns. Donors are aware of the opportunity cost of donations sitting “idle” in a charity’s funding reserves compared with the social good a donation could do if spent. Furthermore, some donors, particularly those who give each year, want to ensure that their charitable giving goes where it will be spent.
    The Moneysense Reserve calculation adds up a charity’s cash and investable assets and expresses it in years and months; however, it is not clear what the reserves are divided by to obtain the number of months.  Moneysense has given a grade of A+ to charities that have a funding reserve to cover between 3 months to 3 years. The reported grades are wildly different from Charity Intelligence’s calculations. Moneysense gives an A+ grade to some charities that our data shows have more than 3 years of funding reserves.
    This significant discrepancy may be due to the data source. Moneysense data comes from the charities’ 2010, 2011 and 2012 Canada Revenue Agency T3010 filings. Charity Intelligence’s financial analysis uses the most recent audited financial statements.
    No rating is perfect. Not ours. Not Moneysense’s. Interestingly, in most cases, the Charity Intelligence and Moneysense ratings show similar things about the charities.  However, in some cases there are discrepancies.  For instance, Moneysense has rated both the Ontario and B.C. divisions of the Canadian Cancer Society in the bottom half of the charities rated (B-) whereas Charity Intelligence has them both in the top third of all charities rated (3-star).  The key difference is the significant weighting of administrative and fundraising cost ratios used by Moneysense.  As well, there are a few charities that score very well on the Moneysense ratings but do not score as well using Ci’s ratings.  For instance, both War Amps of Canada and Chalice Canada received A+ by Moneysense but due to their lower-than-average reporting of their social results, they both are rated as 2-star charities by Ci. These areas of difference add to the need for donors to get the facts on charities from different sources rather than giving solely based on a rating score.

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    Charity Intelligence researches Canadian charities for donors to be informed and give intelligently. Our website posts free reports on more than 800 Canadian charities, as well as in-depth primers on philanthropic sectors like Canada’s environment, cancer, and homelessness. Today over 500,000 Canadians use our website as a go-to source for information on Canadian charities reading over 1.6 million charity reports. Through rigorous and independent research, Charity Intelligence aims to assist Canada’s dynamic charitable sector in being more transparent, accountable and focused on results.

    Be Informed. Give Intelligently. Have Impact.

    Charitable Registration Number: 80340 7956 RR0001