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About Bob

Bob serves as President and CEO of GuideStar and serves on the boards of Vision TV, Grameen Foundation USA, and the AAFRC Trust for Philanthropy. More...

About GuideStar

GuideStar gathers and publicizes information about nonprofits. We advocate that nonprofits share information openly and completely. Any nonprofit we track can update its report for free. More...

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Documenting a High-Performing Organization’s Work-Only Once

How much effort should an organization expend on documenting its good work for prospective donors? That was the question on the minds of participants at an interesting conference held in May by America’s Charities on the campus of Georgetown University. Under the new leadership of energetic Steve Delfin, the conference was an all day analysis of what it will take to increase workplace charitable giving. The story for affiliates of America’s Charities is that giving has continued to increase, but with a trend towards larger gifts from fewer contributors. Changing demographics and the impending retirement of baby boomers were key concerns as well.

I was there to participate in a panel with Art Taylor of BBB Wise Giving Alliance and Ken Berger from Charity Navigator. The session was billed as an opportunity to learn more about how to deal with charity evaluators and in part a challenge to their methods and conclusions. Art gave a deliberate summary of the exhaustive BBB approach to judging a charity. Ken acknowledged that the current Charity Navigator process is of limited value by focusing solely on finances, but outlined a plan to overhaul its rating system that will take several years to accomplish.

Aside from being judged, another concern on the minds of the organizations in attendance at the conference was one that applies directly to GuideStar: the time and effort that organizations spend on filling out the same information for multiple review organizations. Here GuideStar can be of particular help to over-worked charity officials. The GuideStar Exchange program is designed to be a comprehensive summary of an organization’s work: mission, programs, finances, board and management. Plus videos and other promotional materials can be added to help tell the organization’s story. And here’s where it really gets good: after posting that information on GuideStar, where it is seen by millions of people, we share your information with over 50 other sites – from community foundations, to commercial donor-advised funds, to giving portals like Network for Good, and many more all using GuideStar data. Last year, those partner sites using our data was seen by more than 5 million users and processed more than $2 billion in donations. This is an example leveraging at its best.

In today’s world, being a high-performing organization requires a commitment to transparency and accountability. Donors need regular communication on what you are doing and how you are doing in achieving your goals. It’s part of doing business. Not only do an organization’s stakeholders need to know, so do its leaders and staff in order to keep improving the organization. Will this require investments in time and people? Absolutely. Count on it. Can you do it smarter? Absolutely. Start by checking out the GuideStar Exchange: http://www2.guidestar.org/rxg/update-nonprofit-report/about-the-guidestar-exchange.aspx.

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More Questions about Nonprofit Health Care Cooperatives

I’m still trying to decide how health care cooperatives work and whether they can reach the scope and scale that our health care system needs to introduce some of the reforms that are being discussed.

Last week I interviewed Steve Delfin, executive director of the National Credit Union Foundation, who told me about how credit unions work. His blog on this issue is interesting. We learned from him that cooperatives are owned and controlled by their members—the people who use the co-op’s services or buy its goods. Any surplus revenues are reinvested in the business.

Steve also recommended an interesting Web site, the National Cooperative Business Association, or NCBA. Here’s a link: http://www.ncba.coop/abcoop_health.cfm. The site has a lot of interesting information on why NCBA thinks cooperatives can work for health care delivery. On it I learned that there are about 30,000 cooperatives in all, and that they have a significant impact in four sectors of the U.S. economy: agriculture and food, credit unions, mutual insurance, and rural electric. But not health care!

NCBA reports that there are four kinds of co-ops. Every model has at least a few examples of health care services.

  • consumer-owned co-ops (credit unions and rural electric co-ops)
  • purchasing cooperatives (hospitals buying equipment together)
  • worked owned cooperatives (there are several in home health care)
  • producer cooperatives (such as Land O’Lakes)

Unfortunately, the impact of consumer-owned health cooperatives today is relatively small. The NCBA estimates that approximately 2 million Americans are member owners of consumer-owned health-care cooperatives.

The NCBA identifies some important unanswered questions that policy makers will need to address:

  1. Will the co-ops be seeded by government grants or will they be loans?
  2. How much control will the government exert?
  3. How much time will the government give to get health care co-ops started?
  4. Will the co-ops be allowed to form into a federated co-op on a national scale?
  5. Will there be minimum federal standards that supersede state law?
  6. What laws would regulate regional co-ops?

These seem like pretty difficult and complicated issues to solve. What do you think?

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More on the Nonprofit Cooperative Option for Health Care

Nonprofit medical cooperatives still seem to be in the picture as an alternative to the so-called public option as part of the medical reforms being discussed.

In my last blog on this issue, I mentioned there are very few co-ops in the GuideStar database, and I expressed some doubts about the capabilities and scalability of creating new nonprofit co-ops to provide health services. To learn more about how co-ops work, I contacted a friend, Stephen Delfin, who serves as the executive director of the National Credit Union Foundation. Steve says that "credit unions are not-for-profit, member-owned financial service cooperatives. The thread between different types of coops is the non-profit, member-ownership stature and commitment to social responsibility."

He says they all operate with a commitment to the following principles:

  • Open and voluntary membership
  • Democratic control
  • Non-discrimination
  • Service to members
  • Distribution to members
  • Building financial stability
  • Ongoing education (financial)
  • Cooperation among cooperatives
  • Social responsibility

Steve also told me that the co-op is a "business model uniquely positioned to tap into the post-economic melt-down psyche of Americans. Whether in health care or financial services, the business motives of cooperatives are not profit, but service to members." He discusses the cooperative model in a recent blog.

After talking to Steve, the concept of a nonprofit health co-op sounds a little more intriguing to me. Wouldn’t it be great to be a member of an organization focused solely on providing me and my family with excellent health care, rather than fighting through all the paperwork and bureaucracies that exist in health care today?

In my next post, I’ll take a closer look at how current health co-ops work.

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