Evaluation potential highlighted in philanthropic sector

The University of Otago, in collaboration with Philanthropy New Zealand (PNZ), has released what is believed to be New Zealand's first national report into grantmaking practices.

The report Grantmaking in New Zealand: Giving that Works, authored by Dr Richard Greatbanks, discusses the results of the New Zealand Grantmaker Practices Survey undertaken in August and September 2013. Based on similar research from the US, the survey aimed to "record and analyse the nature, size and shape of New Zealand philanthropic grantmaking practice".

The survey invited 105 PNZ members and four non-PNZ members to consider in detail their grantmaking practices over the 2011-2013 period. The results are based on a total of 40 valid responses (34.3%). A series of face-to-face and telephone interviews were also undertaken with a sample of the larger grantmaking organisations to address secondary objectives: looking at the effects of the 2008 Global Financial Crisis and the major challenges and opportunities for the sector over the next five years.

Amongst the seven recommendations made, the report supports the improvement of evaluation practice within the philanthropic sector. While survey results indicated a slight increase in the funding associated with grantee evaluation, the report noted that current evaluation practices are generally completed for internal communication to board members. The report notes missed opportunities for using data produced by grantees to improve grantmaking processes and recommends prioritising evaluation practices to include more of the grantee's voice, such as how the interaction between grantmaker and grantee worked, and reflection on the cost and effort of grantee reporting.

Report recommendations include:

At the national philanthropic sector level, establishing an agreed understanding of best practice in terms of evidence-based evaluation and assessment and develop a plan to disseminate this through the philanthropic sector.

At the grantmaking and process level, use more of the evaluation data produced by the grantee for external facing development rather than internal reporting to foundation governance boards.

Other resources include in the area include an article by ASB Community Trust on the Inspiring Communities website, Funder Investment in Community Capacity to Capture Outcomes and Evaluate Change.