
How to outsource picking charities
One of the biggest inefficiencies in the nonprofit world is the fact that charities are rewarded for fundraising prowess more than they are for their skill at making the world a better place. Causeway, a new product from Charity Navigator, is an attempt to address that problem..
Why it matters: The less effort that charities have to spend reaching individuals and persuading them to open their wallets, the more they can focus on their core activities.
The big picture: "We're finding that our younger users are not as married to a nonprofit as they are to a cause," says Laura Andes, Charity Navigator's vice president of ratings and impact.
- Charity Navigator has therefore created baskets of charities working in certain areas — animal welfare, say, or organizations addressing homelessness or education in the United States.
How it works: Charity Navigator does the work of looking at all the charities working within a particular cause, and then picking a handful of them who are particularly effective and diversified.
- When you donate to one of the Causeway "funds," your money is then divvied up between those charities.
- The funds can be thought of as a bit like ETFs for charitable donations — but they're not funds in the sense that they hold money for any length of time. They're strictly passthrough vehicles.
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