Category: uncategorized

The Opportunity in Impact

 

Charity Intelligence is in full agreement that the dialogue on assessing charity performance needs to be changed. I would suggest a slight wording change from  http://www.imaginecanada.ca/blog/trekking-ratings#comment-124951″ target=”_blank” rel=”noopener noreferrer Bruce MacDonald’s Nov. 24 post where he talks about Redefining the Problem though; I would call it Focusing Attention on the Opportunity. At the heart of it, I believe I am saying the same thing – the Canadian charitable sector would benefit greatly from a focus on measuring and reporting on impact.
Donors have to make assessments in their giving. How should they decide which charities to support? Ideally donors would support charities that have the highest impact – charities that do the most good with donations.
At this time, the vast majority of charities do not report on their impact. Many charities are struggling with how to measure the change that they help to create. Therein lies the Opportunity, and it is a dual opportunity. Charities that are able to better measure their impact will both have the tools to be able to continually improve their operations, as well as the ability to provide donors with the information they need to make better giving decisions.
The charities that we have seen that actively measure their impact – where, how, and how much change they help create – are manic about helping their clients or improving on delivering against their mission. In order to continually know that they are doing a better job at whatever they are doing, they need to measure what matters and use that information to improve. This is the key opportunity in measuring impact.
The second opportunity is that donors will be better able to truly understand what matters when assessing charities. In the absence of information on impact, donors looking to assess charities fall back on what is available, on what charities often proudly put forth – cost efficiency metrics. Given the inadequacy of these simple metrics, charity ratings have emerged and have become a tool that many donors find immensely useful.
In compiling these ratings, charity analysts are using a variety of different measures: transparency, accountability, governance, leadership, funding need, and cost efficiency (fundraising and administrative cost ratios).
The current charity lists and ratings use different combinations of these factors. MoneySense’s grading assesses cost efficiency, governance and funding need. Imagine Canada’s accreditation is based on governance, financial transparency, ethical fundraising practices, and staff and volunteer management. Charity Intelligence’s ratings are based on donor accountability, financial transparency, funding need, and cost efficiency.
As charity analysts, we’re all trying to measure what matters most. This is an evolutionary process for us all and there is general consensus that we need to move more towards understanding impact.
This is the goal for our ratings at Charity Intelligence. As a start, we have measured the impact of 50 Canadian charities in the social services sector. We recently released our  https://www.charityintelligence.ca/canadian-charity-impact-fund” rel=”alternate list of the 10 highest-impact charities from this small subset. As part of the evolutionary process towards what matters most, we plan to incorporate impact into our charity ratings.
It is early days in measuring impact. Shifting the focus from cost-efficiency to charity impact will change the discussion. This is the opportunity before us.
 


 
If you find Charity Intelligence’s research useful in your giving, please consider donating to support our work. Being entirely funded by donors like you maintains our independence and objectivity to help Canadians be informed in their giving. Canadians donate over $17 billion each year. This giving could achieve tremendous results. We hope Charity Intelligence’s research helps Canadians give better.
Legal disclaimer:
The information in this report was prepared by Charity Intelligence Canada and its independent analysts from publicly-available information. Charity Intelligence and its analysts have made endeavours to ensure that the data in this report is accurate and complete but accepts no liability.
The views and opinions expressed are to inform donors in matters of public interest. Views and opinions are not intended to malign any religion, ethnic group, organization, individual or anyone or anything. Any dispute arising from your use of this website or viewing the material hereon shall be governed by the laws of the Province of Ontario, without regard to any conflict of law provisions.

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Fort McMurray Fires Update: Transition From Disaster to Recovery

Canadian Red Cross announces another $25 million in money transfers to Fort McMurray evacuees, on top of previous $50 million

 
May 31, 2016: In another unprecedented move, the Canadian Red Cross announced yesterday an additional $25 million transfer to all Fort McMurray area evacuees. The first person in a household will receive $300, each additional family member will receive $50. A family of four will therefore receive $450. This money will be electronically transferred to all evacuees after they have registered at one of several Fort McMurray information centres on re-entry. The staggered re-entry of residents begins June 1, 2016.
To date, Canadians have donated $112 million to the Canadian Red Cross beforematching government funds. This is the largest donor response to a Canadian disaster, topping the $45 million donated for Alberta Floods in 2013. Donations will continue to rise, albeit at a slower pace. Charity Intelligence estimates total donations to the Canadian Red Cross (before matching donations) will reach $140 million – three times greater than support for the Alberta Floods.  
This direct financial aid is unprecedented in Canadian disaster relief efforts. The Canadian Red Cross has paid out, and will pay out shortly, $75 million in direct cash payments to all Fort McMurray area evacuees. The evacuees in the Alberta Floods of 2013, Lac Megantic, and the Slave Lake Wildfire did not receive similar direct cash payments.
Direct cash payments are the evidence-based best way to help those hit by disaster get back on their feet. Direct cash payments treat all disaster victims equally and maintain their dignity. It is psychologically difficult for people who have been givers to charities suddenly to be receivers of charity. Providing cash lets each person freely meet his and her individual needs.
In addition, the Canadian Red Cross will provide transportation aid to help residents return to Fort McMurray. This includes chartered busses from Edmonton, Lac La Biche and Calgary, airplane tickets for residents from all points across Canada, and gas money for those driving cars, trucks and other vehicles. The Canadian Red Cross estimates this transportation aid will cost $15 million.
As evacuees return to Fort McMurray they will also receive the typical Canadian Red Cross support: each household will receive relief supplies (bucket, cleaning supplies, respirator mask, gloves, flashlight and batteries). The Canadian Red Cross has provided a list of these relief items that is far more extensive than relief supplies provided in previous disasters. Those with urgent needs will be individually assessed by the Canadian Red Cross for additional financial support for rent and mortgage payments, food, clothing, and household goods.
The Canadian Red Cross is helping Fort McMurray’s businesses through covering all the costs of a hot line. This hotline will provide updates for Fort McMurray businesses and link them to resources to help with recovery issues. There will be a future survey that will help allocate resources. 
 
Moving from disaster relief to recovery
In the transition from disaster relief to recovery, attention needs to be paid to counselling, child care and Fort McMurray’s local charities. Counselling is critical. The emotions of returning home, witnessing the destruction, survivor guilt for those with homes undamaged, and the job ahead is overwhelming. Sadly, domestic violence incidents historically spike in the first year following a Canadian disaster. Child care is also a critical service. Parents will be physically busy and emotionally drained. Having child care gives parents the time to recover.
 
Fort McMurray’s local charities update
Fort McMurray SPCA was one of 16 Alberta charities that worked tireless in the heroic rescue of 1,177 pets from Fort McMurray. It reports using up every available resource to provide health checks, veterinary care when needed, food and supplies for the evacuation of pets. Donations are desperately needed to help Fort McMurray SPCA recovery to support returning families.
Wood Buffalo Food Bank reports that all its non-canned food must be thrown out and, with the power out, its fridges and freezers must be emptied. A gruesome job. Albert food banks have rallied to Wood Buffalo Food Bank’s support. Replacement food is in Leduc to get the food bank up and operational. Wood Buffalo Food Bank hopes to start serving the community June 6, 2016.
Fort City Church’s parking lot is the operations base for Samaritan’s Purse and the Billy Graham Evangelical Association of Canada. Samaritan’s Purse is living up to its reputation of “getting dirty and doing the heavy lifting” in disaster recovery. It is on call to help Fort McMurray residents carry fridges and freezers to the curb. Billy Graham has 6 disaster/crisis-trained counsellors available to provide counselling.
United Way Fort McMurray will receive the proceeds from the upcoming FireAid benefit concert in Edmonton on June 21st. To date, the United Way Fort McMurray has raised $280,000.
Conrad Suave, President and CEO of Canadian Red Cross, has met with United Way Fort McMurray and has assured it that it is considered a conduit for the money raised. Donations given to the Canadian Red Cross will be distributed to partner agencies in the Fort McMurray area in stages and likely over a number of years.
 
For additional comments, please contact Kate Bahen, Managing Director, Charity Intelligence Canada 416.363.1555 

Wisdom Gained: Lessons from Slave Lake’s Recovery

Today is the 5th anniversary of the Slave Lake fire. http://www.nadc.ca/Docs/Wisdom-Gained.pdf Wisdom Gained: The Town of Slave Lake shares its reflections on recovery from the 2011 wildfire is a 42-page review on the story of Slave Lake’s disaster relief and recovery. It is a jargon-free account of what worked and what did not. Wisdom Gained is the how-to guide to rebuild a Canadian community in 3 years. It’s also a fascinating peek at how charities help in a Canadian disaster with useful insights for donors to give intelligently.  Let’s learn from the past to best help Fort McMurray’s recovery.  
Key giving tips from Slave Lake fire:

  • Donate cash to help the township and its local charities – Salvation Army, foodbanks, community centres
  • Do NOT send donated goods
  • Know the local needs of the community
  • Do not show up to help without checking in with the township who is leading the recovery and do not expect the township to provide you with room and board while you do your charity work.

… NGOs can sometimes stand in the way of effective assisting with recovery.”

Wisdom Gained has an entire section on donations. Giving stuff hurt Slave Lake’s recovery. Donations show donors care and lets those hit by a disaster know that they are not alone. But donate cash, not stuff. Slave Lake was inundated with donations of stuff. Pallets of items arrived in the town, truckloads of clothes, furniture and household items. Sorting and storing these goods was very labour intensive. This created an enormous burden on Slave Lake when energy was needed elsewhere. Around 75% of the goods that arrived could not be used. Slave Lake, already in a cash-flow crunch (municipal infrastructure like fire hydrants and side walks were not covered by insurance, disaster relief funding had not yet arrived), had to pay the unexpected additional disposal cost of getting rid of these donations.  
Ironically, while Slave Lake was awash in donated stuff, its local charities suffered during the recovery. “Regular donations to the Salvation Army, food bank and the Friendship Centre were down drastically during this time as the focus was on those affected by the disaster.” The town’s volunteers were all in high demand (maybe sorting stuff?). This made it harder for Slave Lake’s most vulnerable to get help.
Cash donations also maintain the dignity, pride and freedom of the recipients. Nobody wants to receive charity. The people of Slave Lake found the sudden turn of the tables psychologically hard. Just weeks before they were giving to charities, now they were receiving charity.  
This was also hard for charities working in Slave Lake to grasp. Most of Slave Lake’s homeowners were well-insured and an estimated 75% did not miss a pay cheque. Yet they had needs. All those affected by a disaster have needs. “Initially, the Red Cross had a hard time justifying support for these families because these were not its typical clients.” Learning the needs of Slave Lake, the Red Cross modified its ways of doing things. The Red Cross provided support services for two years after the fire and funded community initiatives from the donations it received.
Wisdom Gained recollects that many NGO’s were less involved in the recovery of Slave Lake for a variety of reasons, including the high level of government support and involvement, and due to these NGO’s lacking local knowledge on Slave Lake’s people and needs.
Wisdom Gained’s checklist delineates its local charities and outside charities. For effectively helping in a recovery, it recommends townships:

  • Delay arrival of outside NGOs into the community until you are ready for them.
  • Ensure outside NGOs have realistic expectations and understand the need.
  • Pick a local organization to accept cash donations for the town’s recovery efforts.
  • Include information about donations in early public communications.
  • Arrange with one or more outside organizations to run a physical donations centre.
  • Encourage ongoing donations to charities such as the food bank and Salvation Army.
  • Encourage organizations who have received donations to work together to select worthwhile community projects.

Wisdom Gained mentions 5 main charities that came into Slave Lake and provided services:

  • the Canadian Red Cross interviewed and assessed people’s needs, assisted with finances, referrals, accommodation and provided psychological support to children and families. Donations funded school lunches and recreation for children and have supported many other community projects,
  • the Salvation Army provided a mobile truck with meals,
  • Samaritan’s Purse helped clean up debris from the fire and floods,
  • Mennonite Disaster Services came prepared to search through rubble and rebuild houses; since neither of these were options, it helped Samaritan’s Purse in general cleanup,
  • The Billy Graham Evangelical Association of Canada had trained counsellors who provided emotional support.

“If volunteer agencies called saying they needed food, accommodation, showers, they were advised not to come.”
Many other NGOs showed up unannounced and uninvited in Slave Lake and did not check in with the township that led recovery efforts. If you are thinking about going to Fort McMurray to help out, don’t ask for room and board, check in to see if there’s a need that matches your expertise, and don’t get in the way.
Wisdom Gained’s checklist is a nearly complete recovery manual except it forgets to provide Kensington Palace’s telephone number. Will and Kate’s royal visit was a highlight community event lifting Slave Lake’s spirits. Disaster recovery is far more than building new houses; it is rebuilding a whole community’s strength and resilience to adjust to the new normal.
On this 5th year anniversary, congratulations Slave Lake. Fort McMurray’s recovery will be even better if we act on Slave Lake’s wisdom.
 
http://www.nadc.ca/Docs/Wisdom-Gained.pdf Wisdom Gained: The Town of Slave Lake shares its reflections on recovery from the 2011 wildfire, compiled by the Northern Alberta Development Council (NADC) at the request of the Town of Slave Lake (2013) 
 


 
If you find Charity Intelligence’s research useful in your giving, please consider donating to support our work. Being entirely funded by donors like you maintains our independence and objectivity to help Canadians be informed in their giving. Canadians donate over $17 billion each year. This giving could achieve tremendous results. We hope Charity Intelligence’s research helps Canadians give better.
Legal disclaimer:
The information in this report was prepared by Charity Intelligence Canada and its independent analysts from publicly-available information. Charity Intelligence and its analysts have made endeavours to ensure that the data in this report is accurate and complete but accepts no liability.
The views and opinions expressed are to inform donors in matters of public interest. Views and opinions are not intended to malign any religion, ethnic group, organization, individual or anyone or anything. Any dispute arising from your use of this website or viewing the material hereon shall be governed by the laws of the Province of Ontario, without regard to any conflict of law provisions.

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Canada Red Cross Revised Numbers for Giving to Local Charities

The Canadian Red Cross issued a press release on May 12, 2016 that Charity Intelligence has received questions about. All organizations revise numbers – public companies, government bodies and charities too. Numbers are restated and numbers change with additional information.
1. The 2% reported by Charity Intelligence was not an error. And it was definitely not a media error. Charity Intelligence takes full responsibility for reporting that 2% of the Red Cross’s donations went to local charities after the Alberta Floods. Charity Intelligence’s strength is doing numbers – and getting them right – based on the best information publicly disclosed.
This number is calculated based on what the Red Cross reported on its annual CRA filings for F2014 and F2015. The breakdown of this $916,719 figure was:

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ALS Ice Bucket Challenge: A 2 Year Update

Two summers ago the ALS Ice Bucket Challenge was all the charity buzz. In intelligent giving, it is critical to check in on what happened to the money, get updates and evaluate results. Here’s an update for the 260,000 Canadians who donated to ALS Society Canada in the Ice Bucket Challenge.
Canadians participated more and donated more in the ALS Challenge than any other country. Canadians donated $16.2 million to ALS Canada. Canadians donated the most to the ALS Ice Bucket Challenge on a per population basis; Canadian gave US$0.39, 18% higher than US giving and significantly higher than British and Dutch giving.

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