Yoni Levitan Posted over 2 years ago Dan Pallotta: The way we think about charity is dead wrong It looks like I misunderstood your comment. When you said that for profit companies are measured by dollars and cents I incorrectly assumed you were implying charities should also be measured using financial metrics (i.e. overhead ratios). I agree that it's important to spend on evaluation. Even if it takes considerable resources. This is because of course, some NGO's focus simply on "are we doing our work as effectively as possible?" when they should at least occasionally be asking a completely different question: "What is our high level goal, and is the work we're carrying out the best way to achieve said goal?" As far as I can tell GiveWell (www.givewell.org) is the leader is evaluating charities that carry out international development work. They are highly transparent and are great about posting their thinking on their blog. I encourage you to check them out. Lastly, I'm a big fan of the talk you linked to. I've shared it with many people. My old mentor was actually a protege of George Rotor (co-CEO of Engineers Without Borders... or at least he was a few years ago).