For Immediate Release

CENTER FOR EFFECTIVE PHILANTHROPY RELEASES "TOWARD A COMMON LANGUAGE," DETAILING 13 WAYS FOUNDATION CEOs CAN MEASURE THE PERFORMANCE OF THEIR FOUNDATIONS

Boston, MA: The critically important question of what information CEOs and boards need to assess overall foundation performance requires additional attention, concludes a Center for Effective Philanthropy report released today. The report, entitled "Toward a Common Language: Listening to CEOs and Other Experts Talk About Performance Measurement in Philanthropy," suggests that "while evaluations of specific grants, or even clusters of grants, are currently widely utilized," a new, holistic assessment framework is needed.

The report is based on 74 discussions including 18 interviews with CEOs of major foundations. "The thinking represented in the paper is informed by those with whom we spoke," said Phil Buchanan, CEP's Executive Director. "Our objective was to distill and organize what we had heard and guide our own ongoing research as well as to offer to the field what we believe is a powerful framework for thinking about this issue." The report concludes that there is growing interest in performance metrics among foundation leaders and that a common language for thinking about overall foundation performance is beginning to emerge. "Everyone is now going to need to look at, with fewer resources, how do we become more effective," predicted one foundation CEO interviewed for the report.

Although many CEOs expressed frustration with what they perceive as a lack of reliable foundation performance measures, there is significant consistency both in those measures currently utilized and in those that are desired, were better data available. The report outlines 13 current and potential measures of performance in three broad categories - achieving impact, setting the agenda, and managing operations.

The report was produced as part of the Center for Effective Philanthropy's Foundation Performance Metrics Pilot Study, funded by The Atlantic Philanthropies, The David & Lucile Packard Foundation, and the Surdna Foundation. "This document represents a beginning, not an end," said Buchanan. "The first step in our Study was to listen to those in the field, in order to take the pulse of this important issue. Now, guided by what we have learned, the challenge is to develop data where it doesn't yet exist to allow executives and trustees to make better-informed decisions about how to maximize the effectiveness of their foundations."

To that end, a number of research activities are underway, including a major survey of over 3,000 grantees across more than 20 different foundations, a survey of CEOs from the 250 largest foundations, in-depth interviews with foundation trustees, and an analysis of publicly available IRS data on foundations and their grantees. The goal of the study, which concludes later this spring, is to "advance the discussion regarding foundation-wide performance measurement," said Buchanan. "These are complex questions, and we don't expect to generate definitive answers through this Pilot Study. But we do hope to demonstrate the power of foundation performance assessment as a means to achieving greater social impact and to build data around key potential measures that are seen as useful to the field."

The development of the report was informed by the Study's Advisory Board, comprised primarily of foundation CEOs, and its Committee of Experts, as well as by the interviews conducted by CEP's staff. The report does not represent a consensus of those involved, but is informed by their perspectives.

To to obtain a copy of the seminar publication, please click here.

The Performance Metrics Pilot Study Advisory Board includes Michael Bailin, President of the Edna McConnell Clark Foundation; Paul Brest, President of the William and Flora Hewlett Foundation; Dennis Collins, former CEO of the James Irvine Foundation; Alexa Culwell, CEO of the Charles and Helen Schwab Foundation; Jonathan Fanton, President of the John D. and Catherine T. MacArthur Foundation; Joel Fleishman, former President of The Atlantic Philanthropic Service Company, Inc.; Rebecca Rimel, President & CEO of the Pew Charitable Trusts; Edward Skloot, Executive Director of the Surdna Foundation; Lou Smith, former President and CEO of the Ewing Marion Kauffman Foundation; and Mark Smith, President of the California Healthcare Foundation. Also on the Advisory Board are Page Snow, Chief Officer of Institutional Planning at the Pew Charitable Trusts; Barbara Kibbe, Director of Organizational Effectiveness at the Packard Foundation; and Vince Stehle, Program Officer at the Surdna Foundation.

ABOUT THE CENTER FOR EFFECTIVE PHILANTHROPY

The Center for Effective Philanthropy is a nonprofit research and educational organization whose mission is to provide foundation executives and trustees the management and governance tools to define, assess, and improve overall foundation performance. The Foundation Performance Metrics Pilot Study is CEP's first major project. In addition to the Study funders, listed above, support for CEP's work is also provided by the Ewing Marion Kauffman Foundation.