The nonprofit sector accounts for more than $1 trillion in economic activity, employs 11 million people, and receives $300 billion in charitable gifts annually. There seems, however, to be no clear way to gauge how well these resources are being used. When it comes to information on how nonprofits perform, there is insufficient transparency, access, quality, and utility. It doesn't have to be this way. If we can collect the right data and create the right analytics, we could pinpoint the highest performers. That will consequently lead to better decision making and more efficient allocation of resources, which ultimately will provide greater value to those in need. This paper explores how the world of philanthropy can learn valuable lessons from an unlikely sector: the financial services industry.
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