The value of charity analysis: How reviewing your organisation can help you achieve more

By: 

Dr Beth Breeze

publications editor

by Esther Paterson and Iona Joy

Whilst the benefits of analysis have been well known in the private and public sectors for years, charities have not always been subject to the same scrutiny. NPC has been analysing charities for nearly a decade and believes that it is key to charities becoming better at what they do, because it helps charities to identify strengths and weaknesses, find out what works and what does not, and work out how to improve. In this report, NPC turns the tables by inviting feedback on their own performance from 16 charities who have been analysed by NPC in the past. The aim of this exercise is to clarify why charity analysis is useful by asking questions such as: what do charities think of NPC’s analysis? How have they benefited? And how could the analysis improve? Three main benefits of analysis are identified in the report: Firstly, by identifying strengths and areas for improvement, analysis can both challenge and encourage charities in their work, and be used by the management and trustees as a tool for internal reflection and assessment. Secondly, the process of internal reflection and assessment can prompt charities to make changes and improve their work. And thirdly, independent analysis can help charities to attract funding, because it can increase the confidence of funders and potential partners in the charity.

 London: New Philanthropy Capital, July 2011. 14pp. Free to download at http://www.philanthropycapital.org/download/default.aspx?id=1158