Efficiency vs Efficacy: the Metrics Myth in Grantmaking

Posted on April 25, 2012

     Richard Marker’s article on “Efficiency vs Efficacy: the Metrics Myth in Grantmaking,” makes the great point that it is wrong to assume “that[with]…the right numbers, [one] will be able to compare the objective worth of ngo’s and nfp’s around the world.”  His article addresses this problem which can be seen here:

“It is increasingly clear that efficiency is not a very useful predictor of efficacy.  I recently read a study of retail stores that showed that extreme reductions in staff did not lead to more profit but rather led to worse service and fewer customers.  The same applies in this sector: A social worker with an unconscionable case-load doesn’t become more efficient but does provide service of questionable quality.”

     This article is an important read for anyone because it provides the proper awareness for how not to judge a charity.  This article is a good one to read whether you are looking for an effective way to give out grants or are looking into charities to donate to.

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