Research by New Philanthropy Capital and YouGov finds that 40% of people would like a system of grading charities, and they advocate that charities should do more to measure their performance, John Plummer reports in Third Sector Magazine. (http://tinyurl.com/3yypmjy)

Their findings also suggest that 68% of people are likely to withdraw funding from charities that are performing badly.

Does this mean that ignorance is bliss, and if donors don't know how you perform they will continue to give? In the trying times we're in, and as things are getting tighter and tighter economically, people will be giving carefully. They will be thinking

"how much of my money actually helps the cause I give to, and how much is wasted?"

So while many people do give with their hearts, the best way to keep people giving, and to encourage new donors, is to reassure their heads by proving your performing well. And that is where a grading system could help.

In the meantime, you need to point to how you do things to reassure your donors. Taking advantage of new technologies to streamline and join-up data and processes, educating your staff and volunteers in best practices, encouraging information and knowledge sharing so your not re-inventing or duplicating are all things you should be doing to demonstrate your commitment to good performance.