Opinion: Charities Should Be More Open and Accountable

In a special section devoted to philanthropy, an opinion article in The Wall Street Journal says that charities should be more forthcoming about their effectiveness and adopt more thorough forms of evaluation.

The opinion piece — written by Sally Beatty, a Wall Street Journal writer — cites a recent study by the Center on Philanthropy at Indiana University that found that wealthy Americans would give more if charities spent less on administrative costs and did a better job of showing how donations make a difference.

The Better Business Bureau’s Wise Giving Alliance, which evaluates charities, reports that about 30 percent of the charities that the alliance asked for information failed to provide it, an increase from 22 percent four years ago.

In an interview, Brian Gallagher, chief executive of United Way of America, says nonprofit groups can be reluctant about being evaluated. He says, “We get irrational pushback from nonprofits who say, ‘You can’t measure mission-centered work.’ You most certainly can. The question is, ‘Are you committed to do it?’ And then, ‘Are you committed to report on it?’”

The article makes three recommendations for how charities can be more accountable: 1) Provide more information online; 2) Adopt high standards of measuring efficiency; and 3) Adhere to those voluntary standards.

The special section also includes a guide to giving and financial planning, information on how to research charities, a story on how philanthropy assists disaster relief, an article about charitable foundations, and a piece on British philanthropy.

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