ProSpeak: What Americans Really Need to Know About Charities

While efficiency is indeed important, it pales in importance next to effectiveness. As Dan Pallotta wrote in a June 22 post titled "'Efficiency' Measures Miss the Point" on his Free the Nonprofits blog at HarvardBusiness.org, "In 1995, Physicians for Human Rights had revenues of approximately $1.3 million. They spent approximately $750,000, or 58 percent of revenues, on program. Today that organization would fail all of the watchdog standards for 'efficiency.' It would be ineligible for a BBB Wise Giving Alliance seal of approval. The Nobel Peace Prize committee felt differently. Physicians for Human Rights won the Nobel Prize in 1997 for its work as a founding member of the International Campaign to Ban Landmines."