Archive for February, 2010

Funders Should Do More to Help Nonprofits Build Evidence

Tuesday, February 23rd, 2010

Announcing the final funding guidelines for the Social Innovation Fund last week, the chairman of the Corporation for National and Community Service Board said, “It’s just crystal clear we can’t continue to be funding social programs the way we’re funding them without more evidence of success.”

As I discussed in my last post, I see the Social Innovation Fund – and its focus on evidence – as a welcome push in the right direction. While there have been funders and nonprofits that have worked hard to assess effectiveness over the past many decades, we remain well short of where we need to be.

Admittedly, assessment in philanthropy is complex. It happens at multiple levels:  1) determining which grantees to fund; and 2) assessing a foundation’s own overall effectiveness. These two levels are interrelated, of course, but each has its own set of challenges.

Cutting to the heart of the first level’s challenges are the requirements in the SIF Notice of Funds Availability’s “Applicant’s Track Record of Using Rigorous Evidence to Select, Invest in, Support, and Monitor the Grantees” section. Funders must describe the process they use to “incorporate evidence into the selection, investment, support, monitoring, replication, and expansion of your grantees” and provide “in detail specific examples of how your organization has used rigorous evidence to drive program improvement and increase the base of evidence of what works.”

Neither of these requirements would be easy for most foundations to fulfill.

Today, too few funders use “rigorous” evidence to select the nonprofits they fund or to drive the development of their own goals and strategies. But, while I applaud the push that SIF NOFA requirements provide, any move in the direction they suggest must be made thoughtfully.

These guidelines should not be taken as an invitation to put the onus on grantees to suddenly produce evidence of their effectiveness independently. As I said in my post last week, many nonprofits are understaffed and underresourced, lacking the people, skills, and/or funds to conduct evaluations or collect data. Funders should proactively offer support – monetary and nonmonetary – to help grantees develop the needed systems and data to more rigorously test their effectiveness. 

Today, too few funders provide the needed support for nonprofits to build better evidence bases about their work.  At CEP, we have analyzed data from over 30,000 surveys of grantees of nearly 250 funders, and the facts speak for themselves:

  •  Just 11 percent of grantees report that their funder helped them with the development of performance measures
  • Only 11 percent say their funders provided them with research or best practices
  • Of the 58 percent of grantees who reported having participated in a reporting or evaluation process, less than half (44 percent) report that after submitting a report or evaluation, their funder or an evaluator discussed it with them

These facts have consequences.  We know from our data, for example, that when discussions of a report or evaluation do not happen, grantees find the reporting/evaluation process to be much less helpful in strengthening their work. 

Funders have an opportunity – and an obligation – to step up and share responsibility for the development of more rigorous nonprofit performance data.  Because if nonprofits are in a better position to answer questions about what works, funders will be able to better decide where to direct their resources, and subsequently have  more answers to questions about their own effectiveness.

If the Social Innovation Fund can act as an impetus for this kind of evolution, that is a very good thing indeed.

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Ellie Buteau, PhD, is Vice President-Research at CEP

Experimental Design Can Be a Powerful Evaluation Tool

Wednesday, February 17th, 2010

The White House’s Social Innovation Fund, which will support intermediary grantmaking institutions that “identify and invest in promising organizations to help them build their evidence-base and support their growth,” has been a topic of much discussion and debate. Among the concerns has been the Fund’s focus on evidence of nonprofit program effectiveness and, in particular, its focus on evidence of effectiveness being based primarily on experimental design approaches.

In an op-ed in the Chronicle of Philanthropy, Katya Fels Smyth, founder and principal of the Full Frame Initiative, argues that “No one benefits” from the Fund’s proposed approach. “Not the best ideas for helping the nation’s most vulnerable, not the taxpayers, not philanthropy, and, most important, not the communities that most need help achieving a decent quality of life.”

Her critique is rooted in an inaccurate conception of what it means to take an experimental design approach. She asserts that experimental design must “require a very narrow definition of who is being studied, and people who face multiple intertwined challenges—who are the most in need—are excluded. So, for example, if a new approach to helping homeless mothers is under scrutiny, experimental-design evaluation would exclude battered women, those with chronic health problems, or those involved in the criminal-justice system unless everyone had the same problems.”

But that is simply not the case.

An experimental design approach need not be totally removed from the complexities of the real world or prevent innovative approaches from receiving serious consideration. Many factors can be taken into account through the design and statistical analysis processes.

For example, in one of its randomized trials, Nurse-Family Partnerships, which is now a grantee of The Edna McConnell Clark Foundation, had an objective “To investigate whether the presence of domestic violence limits the effects of nurse home visitation interventions in reducing substantiated reports of child abuse and neglect.” Participants did not fit a “very narrow definition” but instead differed in a number of important ways, including the number of domestic violence incidents in the family, race of the mothers in the study, mother’s marital status, and the employment status of fathers. These differences were taken into account when the data for this study were analyzed.

My experience with foundations and nonprofits tells me that we certainly are at no risk today of over-emphasizing rigor in how assessment is approached. Nor is it the case that a greater emphasis on rigor – and on really understanding what works and what doesn’t – need crowd out other valuable approaches to getting feedback.

The promotion of experimental designs often has a polarizing effect: this has been true in the field of education with the What Works Clearinghouse, psychology’s approach to the study of social issues, and in the nonprofit community and field of evaluation as well. Proponents sometimes act as if it is the cure for all evaluative ailments; opponents sometimes act as if it is the root of all evil.

But being in support of the use of experimental designs is not necessarily in tension with supporting nonexperimental designs, case studies, and the use of qualitative data (the importance of which Bob Hughes, from the Robert Wood Johnson Foundation, wrote about in a recent CEP blog post). Any design should be selected because it is the best way to answer a particular question, and the question to be answered should be directly related to the stage of the organization or program being tested. Not all questions in the field are best answered through an experimental design approach. But some are. I see experimental design as an important tool for the field to use to understand the effectiveness of its work.

Experimental designs allow us to rule out alternative hypotheses in a way that no other designs do. When testing the effectiveness of a social program being offered to those most in need, doesn’t it behoove us to get as close to an understanding of causation as possible?

We should seek to be as confident as possible that a program has positive benefits and isn’t yielding no – or even negative – effects. Philanthropy should be looking for the models that have potential to really make a difference on our toughest social problems. The field has a moral obligation to demonstrate, to the best of its ability, that a program works before funneling significant resources to expand it.

Admittedly, these are weighty statements. Many nonprofits are understaffed and underresourced, lacking the people, skills, or funds to conduct evaluations or collect data. A small nonprofit might have an excellent innovative idea that deserves to be tried on a larger scale and tested more rigorously. This is where funders come in. They have a crucial responsibility in this.

I will take a closer look at that responsibility in my next post.

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Ellie Buteau, PhD, is Vice President – Research at CEP

A Dose of Honesty: Expectations

Friday, February 12th, 2010

“There was an extremely lengthy and convoluted pre-proposal process. The program officer then seemed to need a lot of hand-holding in making the case to the trustees. Once the grant was verbally confirmed, an additional online application process seemed to duplicate the copious information requests already made. Later, after the grant was confirmed and awarded, they decided to change what it was for exactly, leading to further paperwork and back and forth. Condescending…and painful.”

“[The Foundation was] unreasonable in the demands it made for data that we could not collect or just was not available…the Foundation is asking us to collect data up to a year after the project funding has finished. We have no money to pay anyone to do this work.”

This weekend I was surprised to receive a Travelocity airline confirmation forwarded to me from my parents. They don’t fly very often, and booking travel online is a pretty new experience for them. My dad begs my mom to do the searching because he finds the multitude of sites and options frustrating.

My mom is really only concerned with price. So, when I, a frequent traveler, opened their confirmation I just sighed and began to work up some serious anger at Travelocity. Travelocity hadn’t given them any easily visible warning that the “inexpensive” flight they had purchased would require them to execute a 25 minute connection. Nor or was it clear that their second “direct” flight stops for an hour and a half in Minneapolis. Too bad – it’s a sunk cost now. They’ll just muddle through.

Like the grantees who made the comments at the beginning of this post, my parents are suffering from a lack of clear, upfront information about what to expect from a complex system. This is a frequent lament of grantees: At first a funder’s requirements and processes seem simple and straightforward but there turn out to be hidden twists, predictable by the funder but not visible to the grantee. That lack of clarity can frequently lead to an erosion of trust between two organizations that should, optimally, be partners in achieving mutual goals.

Grantees tell us that foundations are often “overwhelmed” and “unresponsive.” But both sides are complicit, as Nancy Lublin points out, mockingly, in her recent Fast Company “letter.” These issues aren’t new, and they’ve been highlighted by others, like Project Streamline. But they continue. And funders have more power, so the fix should start with them.

There are certainly opportunities for some funders to just do away with pointless complications that don’t provide them with any real value (a point I’ll touch on in a future post – but let’s just agree now that font requirements are probably over the top). However, there are also opportunities for most funders to do a better job of setting grantees’ expectations about their processes and requirements.

Imagine if Travelocity had appended a note to “your credit card is about to be charged” that said something to the effect of, “Hey, we’re about to sell you a flight with connections that normal mortals in their seventh decade shouldn’t attempt, during winter, in New England.” My mom would have still purchased a flight, but she would have asked a few more questions and probably ended up with a different one. The site would have earned her undying trust.

Or for funders: “Our typical process involves a letter of inquiry, a conversation or two with a program officer, and a final application. Sometimes it involves a few revisions as we work with you to create a strong proposal. Because we really value data for our decision making, we may ask you to collect quite a bit of it – please ask us about that as part of our conversation. Oh, and by the way, the typical application process takes our grantees about 40 hours to complete.”

Why not? Isn’t the potential opening to build trust and better mutual understanding worth it?

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Kevin Bolduc is Vice President - Assessment Tools at CEP

  

A Dose of Honesty: The Tyranny of the Anecdote

Wednesday, February 10th, 2010

“We always felt we had a ‘Hannibal-the-cannibal’ relationship: Stay where you are and mind yourself and you’re okay. Take one step forward and your arm will be bitten off.”

“The Foundation has had a negative impact on our organization in spite of funding. Runaround by foundation staff and [the Foundation’s] nontransparent priorities and processes have wasted staff time and effort…. It is disheartening to think that the viability of an important program is subject to an unqualified person’s review, analysis, and presentation of our project to the full decision group.”

In my last “Dose of Honesty,” I highlighted the positive end of the spectrum of commentary we receive from grantees. Here, I figured I’d talk a bit about the other end, using these comments from surveys of two different funders.  Just like positive remarks, the terrible need equally careful consideration.

It’s a rare foundation that solicits candid, grantee feedback through CEP’s Grantee Perception Report, that doesn’t end up with a zinger in there. Invariably, comments like these cause serious freak-outs when staff members read them in the full list of redacted comments we provide.

Yet, as these one-off comments absorb attention and focus, they can distract from the important insights hidden in less snappy language in the rest of the qualitative feedback. So, staff should be upset – but mostly if those comments are part of a broader theme and not, as the zingers often are, just an indication of one very broken funding relationship.

One comment is scant evidence of failure – or, for that matter – of success. The glowing comment that gets tacked up on a bulletin board can wipe away dozens of comments that reveal utter mediocrity, or worse, a serious problem. As intoxicating as they may seem, like the zingers, one or two compliments – in a survey or at a dinner party – are just anecdotes.

Don’t get me wrong – qualitative anecdotes have their place. Terrible comments like those at the beginning of this post make for important warnings to foundations about what to try to avoid. They provide a visceral punch in the gut. But our focus at CEP is to raise up themes worthy of significant attention – and so we try to focus on trends in negative comments that highlight areas in which grantees say funders most need to improve.

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Kevin Bolduc is Vice President - Assessment Tools at CEP


A Dose of Honesty: Greatness

Monday, February 8th, 2010

“Honestly, [this foundation] is the ideal funder. I find the whole grantee/grantor relationship distasteful in most cases, but with [this foundation] I really feel like we are equal partners working towards the same goals.”

In a guest post on this blog, Bob Hughes of RWJF highlighted one of the frequent apprehensions about assessment in philanthropy and, too often, about CEP’s work: that assessment is only focused on the numbers. Quantify this. Count that.

While I proudly admit to spending quite a bit of time thinking about the insights that we can pull from our quantitative assessment data, my colleagues and I spend a ton of time analyzing the comments we carefully solicit as part of our surveys. In fact, on many days, our teams spend a lot more time analyzing qualitative data about a foundation than they do buried in numbers.

It’s a rare assessment tool that doesn’t have at least one key finding drawn largely from the qualitative feedback. Doing substantive, frequently comparative analysis of qualitative data, though often difficult and time-consuming, is fundamental to our work. And, we believe, ultimately critical to surfacing new insight and to supporting themes from quantitative analysis.

This post begins a series that will highlight some of the candid, open-ended feedback we receive about funders. I hope the comments I choose to reflect upon will resonate, sometimes make you laugh – or gasp – be food for thought, or just plain illustrate the profound difference that many funders are making through their work.

Take, for instance, the comment at the beginning of this post. You might think that grantees throw around words like “ideal” and “best” pretty frequently in reference to organizations that have given them substantial sums of money. If you thought that, though, you’d be dead wrong.

In our experience it’s fairly unusual. However, for this funder, which I’ll identify when they make their Grantee Perception Report public, that comment was only the tip of the iceberg. About a quarter of its grantees provided open-ended feedback that used a superlative. Here are a few more.

  • “Best ever out of all the funders we work with.”
  • “Best foundation staff on earth.”
  • “The most thoughtful and helpful foundation in my field.  It adds value but respects its grantees.”

The litany continued with words like “favorite,” “most outstanding,” “stellar,” “fabulous,” “awesome,” “A++,” “impeccable,” that drove the point home to the board and staff – I think just as much as the exceptionally positive quantitative ratings grantee provided – that grantees believed this foundation was unusually effective.

In his next post, Bolduc will examine grantee quotes that give negative feedback in “The Tyranny of the Anecdote.”

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Kevin Bolduc is Vice President - Assessment Tools at CEP