Philanthropy News Digest weighs in on recent findings by FSG Social Impact Advisors describing how the emergence of common evaluation systems that enable hundreds or thousands of nonprofits to measure their performance unilaterally is helping to enhance funder and nonprofit effectiveness. The Hewlett Foundation-funded report (downloadable here) measures twenty different shared measurement systems and interviews “dozens of practitioners and thought leaders in the social sector” to identify shared approaches to performance, outcome, or impact measurement across multiple organizations.

This focus on community and calibration is especially notable in the current economy, as two-thirds of foundations expect to engage in collaborations and partnerships in response to the economic downturn (according to another new report by Foundation Center on how nonprofits are dealing with financial crisis).  FSG founder Mark Kramer sums up the issue by stating, “If we are to solve large-scale social problems, we must invest in building the capacity, aligning the efforts, and tracking the progress of all organizations working on an issue.”

It’s about time. Nonprofits have lagged behind in their business methods for far too long. NPOs have different accounting practices and accountabilities than for-proft businesses, but some everyday practices could help stabilize the field and enable them to grow their reach and overall impact.

If we look at the Bill and Melissa Gates’s charitable foundation for example, we find: it’s a transparent and evidence-based philanthropic organization that understands the value of operating in a businesslike manner and has, as a result, earned a solid brand reputation for achieving and reporting results. Consequently, it’s sustainable, evidenced by further investment from the likes of Warren Buffett and others.

Not to suggest that nonprofits sacrifice their missions or co-opt their operating strategies to appease business-minded investors, but by incorporating visibility, commonality, and even branding strategies into their daily activities, charitable organizations could likely enjoy a never before seen stability in the marketplace.