5 Nonprofit Trends to Watch in 2013

5. Increased efforts to rate and compare nonprofits
As nonprofit outcomes are increasingly in demand, donors become savvier and the “nonprofit overhead” distinction diminishes, we will increasingly evaluate nonprofits based on the results they achieve, not on how they spend their money. But that requires a whole infrastructure for evaluating and rating nonprofits to emerge, just as it has for the financial markets. This has already started with Markets for Good, GreatNonprofits and the changes Charity Navigator has made to how it rates nonprofits. I think this market for nonprofit rating infrastructure will continue to grow and evolve as we get smarter about focusing resources on the most effective nonprofits.