What's Wrong With Charitable Giving - And How to Fix It (Post #3)

In the November 9th issue of the Wall Street Journal, Pablo Eisenberg, a senior fellow in the Center for Public and Nonprofit Leadership at Georgetown Public Policy Institute in Washington, D.C., wrote an article entitled “What's Wrong With Charitable Giving—and How to Fix It.” This is the LAST post about that article.

Eisenberg’s final three recommended changes for donors and foundations in order to fix what’s wrong with charitable giving are:

7. Simplify Application and Reporting Procedures

Foundations need to use common grant applications and simplify both the grant application process and follow up financial reporting process.

8. Improve Public Accountability

Who holds the nonprofit sector accountable? Not government so much any more. Not independent investigative journalism which is disappearing. One idea: Eisenberg recommends converting failing or at-risk newspapers into nonprofits that could, among other things, perform this function.

9. Fund the Watchdogs

A dearth of funding for advocacy and watchdog organizations exists, and foundations are reluctant to subject themselves to criticism. Needless to say, this is probably the biggest challenge facing the sector.

In summary, Eisenberg is calling for a complete overhaul in the way foundations think about and do philanthropy. More funding, flexible capital, grassroots outreach, true understanding of critical community needs, public accountability. Less bureaucracy.

Sounds about right.