Study Calls for Greater Flow of Information in Philanthropic Sector

Each year, individuals, foundations and businesses in the U.S. give more than $300 billion to more than a million nonprofit organizations. But are these gifts going to the most effective organizations?

A recently released study by consulting group McKinsey & Co. for the William and Flora Hewlett Foundation urges that if nonprofits, foundations and donors want to increase their social impact, they need a more robust marketplace of information about charitable activity. The study sought to discover what information donors need to make smart decisions about giving and how the philanthropic sector can meet those needs to ensure the most effective nonprofits get the resources they need.