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April 2019

Not-for-profit News’ Sygiel wins SPJ award

By News

(photo credit: Freddi Stevens-Jacobi)

Charitable Advisors’ Not-for-profit News was among the organizations receiving first-place prizes Friday night at the 2018 Best in Indiana awards hosted by the Indiana chapter of the Society of Professional Journalists.

Editor/writer Lynn Sygiel was honored for her three-story series “Recent legislations’ impact on nonprofits,” which looked at how changes in tax laws and a long-heralded student-loan forgiveness government program affect nonprofits and their employees. The stories were submitted in the Best Non-Deadline Story or Series category.

A weekly e-publication which provides information about area nonprofits, the Not-for-profit News competed in the category for newspapers or publications with fewer than 30,000 subscribers.

“We are very excited for Lynn and the Not-for-profit News to be recognized for her excellent work,” said Bryan Orander, Charitable Advisors president.

Charitable Advisors is a social-purpose business that since 2000 has focused on strengthening the nonprofit sector by increasing communication among organizations, creating a one-stop jobs portal and offering consulting services that help boards build sustainability and bridge leadership transitions.

The entire list of winners can be found here. Proceeds from the Best in Indiana contest help fund the Indiana chapter’s college scholarship program. The two winners of $2,500 scholarships for the 2019-20 school year were Lydia Gerike of Indiana University and Emily Ketterer of Franklin College.

Here are links to the Not-for-profit News’ winning series:

Effective altruism applies science to giving

By Feature

By Lynn Sygiel, editor, Charitable Advisors

Diehard punk rock fans may know Peter Murphy as the former front man for the once-popular British goth band Bauhaus. Bauhaus broke up in the early 80s, but Murphy is currently back on stage with a 40th anniversary reunion tour.

Getting excited? Getting your ear plugs ready? Calm down. This story is not about that Peter Murphy. 

This Peter Murphy teaches philosophy at the University of Indianapolis. He’s a bit more genteel, but in many ways, beats a philanthropic drum as loud as his namesake rocker.

Murphy, who teaches a graduate course at U of I called “Poverty, Ethics and Effective Giving,” trumpets a philosophy known as “effective altruism,” or more simply EA.

As part of the class syllabus, students are introduced to the tenets of EA, and their final assignment is designed to apply what they’ve learned. Each year, Murphy secures funds from local donors, and as a group, students must reach a consensus about which organization or organizations will be the recipient of those funds.

“When they try to persuade one another that this is the organization we should give money to, they always set up rules. (One is) you have to give evidence, and the evidence that you give has to meet some kind of rigorous standards,” he said, which is an EA hallmark.

But for Murphy this isn’t just a course. Over the past 25 years, his philosophy students have studied Peter Singer and other scholars who have written about poverty ethics. Murphy was introduced to Singer’s 1972 paper “Fame, Affluence and Morality” as a college student, but his interest in the plight of the world’s poorest people was actually sparked earlier by his brother.

“When my brother went to college in the mid-1980s, he brought home a book that was quite popular at the time called “How the Other Half Dies: The real reasons for World Hunger” by Susan George. It was a best-selling book in the United States, and it was reporting on how roughly half the people in the world were dying of easily preventable causes,” said the Canadian-born Murphy.

Curiosity led him to continue to investigate EA, which has Singer’s ideas at its core. EA, a philosophy and social movement, started in 2011 at Britain’s Oxford University and uses evidence and reasoning to determine the most effective ways to benefit others. It differs from other philanthropic practices because of “its emphasis on quantitatively comparing charitable causes and interventions with the goal of maximizing certain human values.”

“I really see effective altruism as the convergence of people in philosophy who have been interested in ethics with social scientists who came in with randomized-controlled trials,” said Murphy. “The trials have brought out a lot of surprises at least in international giving. There are all sorts of things that have turned out to be absolutely ineffective that are very counter intuitive.”

Effective altruism has also provided a framework for Murphy and his wife, Dana Harrison, for personal donation decisions.

“When we met, we were almost kind of at extremes, and for both of us individually, our personal charitable giving was really important. When I first learned about effective altruism, it was really challenging, and I definitely had a defense response,” said Harrison, who, when she met her now husband, had just left her role as executive director of Dress for Success Indianapolis. He challenged her to think about her investments based on scientific data, not just emotion, in order to do the most good.

The couple encourages others to learn about EA’s framework when making charitable contributions, and they also think it’s important that Indiana’s nonprofits are aware of and keep track of the movement.

Cindy Collier couldn’t agree more.

For the past 15 years, she has been a consultant to corporations, government, foundations, nonprofits, and prior to that, worked for Health and Human Services at the national and state levels. She believes that the EA movement is helping to harness commitment, good work and people’s desire to make a difference.

“Instead of just trying hard, we’re going to succeed more often, and I think that’s the really wonderful aspect of the whole movement. It’s not just caring and trying, it’s taking the caring and the trying, and really making change,” said Collier. She has read “Doing Good Better” by William MacAskill, one of the co-founders of the EA movement, and has recommended it to friends.

“You want to feel good about helping people, but if the next year you come back and nothing has changed, that good doesn’t really feel so good when you haven’t really made a difference,” she said.

“We need to be more agile and try something different to get the results that we want whether it’s health, education, poverty reduction, no matter what the topic might be. If the needle’s not moving, we really need to think about investing in a different way to get different outcomes,” said Collier.

Harrison has often described the movement as “outcomes and evaluation on steroids.”

People who are EA followers believe in flexibility and open-mindedness, said Murphy, and are prepared to abandon a project if it isn’t working.

Local funders, too, have changed evaluations about programming to include data, but not yet to the level of executing randomized-controlled trials.

As a board member for Project Home Indy, Collier remembers the Women’s Fund asking for evidence that the group’s local model would work. As the first funder of a program for teen moms at risk of homelessness, it sent a due diligence committee to meet with staff.

“We have a lot of great foundations, and I have uniformly seen them ask those right questions, thinking about metrics. I have seen them ask what it’s going to be like after services, what’s the impact and what is being tracked. That really changes the culture,” she said.

Harrison thinks that at a minimum every nonprofit should research what models work before adding new programs in order to ascertain that its model hasn’t been disproven already in a dozen communities.

Which is why she was excited to recently learn about the work of the George and Frances Ball Foundation in Muncie. The foundation’s team just completed a study of 130 communities in the U.S. that have had cradle-to-career efforts. The team’s intention is to compare the components and identify what change happened. This is of special interest to Harrison as she serves as TeenWorks’ interim chief executive.

Daydreaming a bit, she wonders what could change if the foundation presents its findings to its nonprofit community and shares which models work and which don’t.

“How would nonprofit leaders react if the three things that worked they would never consider or the things that didn’t work were core to their programming? What is the impact of that and what is our readiness to hear those messages?”

Both Harrison and Collier believe applying EA’s model to areas like arts and culture would be difficult, and acknowledge that measuring poverty and education gains are easier than measuring enjoyment.

Small nonprofits don’t normally have researchers or statisticians on staff or empirically researched randomized-controlled trials.  However, they do see steps for nonprofits to take.

Collier has witnessed some funders asking: When we give you this money, what will be different?

“The nonprofit has got to be able to tell them, ‘Here’s what will change. Here’s the impact we can have.’  It’s thinking about the measurements and the expectations.’

“To me, the great part about this movement is not to make people cynical, but to make them more questioning,” said Collier, and she believes it will become a permanent way to determine what gets funded.

“When you are talking to donors, you are appealing to hearts or checkbooks to make an economic difference. But effective altruism is really about both. I think it’s a way to totally raise the bar about what we want to support.”

And while MIT and other social scientists are aware of EA, there has been limited application in the U.S. with most trials being done in developing countries.

One area, though, that Murphy and others have said is ripe for application is mass incarceration and sentencing. For people in prison or jail, it may be possible to lessen hardship in communities by cutting down the use of incarceration, and that is the leading conjecture of those in organizations that are based on EA principles.

“Do you get any additional deterrents by sending a person away for 10 years for cocaine rather than just 18 months or do they actually become a more hardened criminal if you send them away for 10 years? So, they’re trying to measure things like outcomes on families, employment rates and the economy in a local community. Oftentimes these young men if they can turn it around, they can be at their peak economic performance in terms of productivity and they can really be out there helping themselves and their communities thrive,” said Murphy.

He also believes there are good candidates in the community that meet EA’s principles and standards, making it a movement worth paying attention to.

What is effective altruism?

By Feature

Compiled by Lynn Sygiel, editor, Charitable Advisors

The effective altruism movement started with a simple question: Was there a way to apply data and reason to altruistic acts?

In 1993, two economists Michael Kremer and Rachel Glennerster traveled to Kenya for a vacation. Both had studied economics at the University of Oxford, met at Harvard and married. At the time, Kremer was an MIT professor and Glennerster worked for Treasury.

While overseas, they visited a friend who was working in Kenya and wondered if there was a way to scientifically test which good intentions are most effective. Kremer’s friend worked for a Dutch charity that was providing child sponsorships in Kenya. The group was trying to improve school attendance and test scores. But which of their efforts were making a difference — uniforms, adding teachers, flip chart or textbooks.

Kremer suggested they try a randomized controlled trial to determine what intervention was most effective. They would monitor and collect data from 14 schools of which half would be a control group. By collecting data in all the schools, they could see which fared better. The idea hadn’t been applied to development world. Testing each program one by one, Kremer found that there was no discernible improvement and these interventions had no effect on student outcomes.

Then a friend at the World Bank suggested deworming to cure parasitic infections in children with an annual pill. Kremer did an experiment to see whether it had an impact on education. What they learned was that the program worked to reduce absenteeism, a chronic problem at these schools. What was more impressive is that in a follow up 10 years later, children who had received the medicine worked an extra 3.4 hours per week and earned 20 percent more.

Kremer’s revolutionary approach gained a following and saw dozens of young economists running trials of development programs. By then, Glennerster had become executive director of the Poverty Action Lab at MIT and by 2007, the couple cofounded the nonprofit Deworm the World Initiative, which provides technical assistance to developing countries’ government to launch deworming programs.

And according to William MacAskill in his book, “Doing Good Better,” it is a way of thinking about how to make the biggest difference and uses evidence and careful reasoning to try to find an answer.

MacAskill helped develop the idea while he was a student at the University of Oxford and defines effective altruism as “using evidence and reason to figure out how to benefit others as much as possible, and taking action on that basis.”

Effective altruism, according to MacAskill has five key questions:

  1. How many people benefit, and by how much?
  2. Is this the most effective thing you can do?
  3. Is this area neglected?
  4. What would have happened otherwise?
  5. What are the chances of success, and how good would success be?

Initially, the movement was focused on individual-level charitable giving, and MacAskill also co-founded, Giving What We Can, with a fellow graduate student. The organization encourages individuals to give at least 10 percent of his or her income to the most cost-effective charities.

About the same time, two New York hedge fund analysts starting GiveWell, an organization that does in-depth research to determine which charities do the most good with every dollar. It compares for example how much good $1000 will do depending on which organization you give it to. GiveWell partnered with Cari Tuna and Dustin Moskovitz and started the Open Philanthropy Project.

In the process, the term effective altruism (EA) emerged as a community formed around these groups. Since 2013, EA has held conferences, run by the Centre for Effective Altruism at Oxford University. In 2015, the conference took place on Google’s campus in Mountain View, and in 2016 at the University of California, Berkeley.

Last fall, Vox Media launched Future Perfect, a new section to cover under covered issues. The twice weekly publication is inspired by the EA movement and is funded in partnership with The Rockefeller Foundation.