Guidestar CEO takes on the complex world of philanthropy

The success of a charity often depends on more than the number of gowns and black bow ties parading at a fundraising gala. It depends on more than the contributions of a chief executive shoveling dirt at a troubled elementary school. Or the mass of women in visors and pink T-shirts walking a 3K around the National Mall.

The success often depends on the data that gets churned up by the savvy analysts at a nonprofit group such as District-based GuideStar.

GuideStar combs through charity filings to produce reports on how groups spend their money, and that information is closely followed by donors who are trying to decide where to give their time, talents and treasures.

Over the past 10 years, president and chief executive Bob Ottenhoff has watched the demand grow for that data, generating revenue that rose to $9.7 million in 2010 from $2.8 million in 2000.

But donors don’t just want an analysis of IRS filings any more. They want to give to charities that make a palpable social impact, a quality that’s not always easy to measure. To stay useful, GuideStar needs to develop new yardsticks.

“That’s where GuideStar has got to go,” Ottenhoff said.

Ottenhoff recently announced that he is stepping down and making way for Jacob Harold, a 35-year-old foundation leader who has served on GuideStar’s board since 2010.

After studying literature and ethics in college, Harold worked for environmental organizations including Greenpeace and Rainforest Action Network.

During that time, he became familiar with the aggressive ways that often mark community activism. In a protest stunt against Ford Motor Co., some of his colleagues rappelled off of a building in downtown Detroit to hang a 50-foot banner. Harold bailed them out of jail that night. The next day he found himself in a suit speaking at the car manufacturer’s shareholder meeting about the need to build clean cars.

“To have the sort of impact that I think the world needs, I had to figure out how to wear a suit and multiply my impact,” Harold said. So he decided to go to business school.

“A business approach is not fully translatable to the nonprofit sector … but there’s no doubt that both sectors have a lot to learn from each other,” he said.

He spent a summer in India working on climate change for the David and Lucile Packard Foundation and in China studied the science of complex systems. Suddenly the world of philanthropy with all of its moving parts — donors, nonprofits, social impact — seemed a bit more understandable.

Harold eventually moved to Bridgespan Group, a nonprofit consulting firm that spun out of Boston management consulting firm Bain & Co. Consulting in 2000.

He then joined the William and Flora Hewlett Packard Foundation, an organization in Silicon Valley, where he managed a portfolio of $30 million. Harold was instrumental in providing grants to GuideStar and other nonprofits that look to answer tough questions around philanthropy.

Now a year and a half shy of the end of his term as a director, Harold couldn’t pass up the opportunity to bridge the world of big data to philanthropy.

“This felt like a great step for me,” Harold said.

Vanessa Small covers philanthropy and nonprofits for Capital Business. She also spotlights newly appointed executives in the New at the Top column, which chronicles their journeys to the top. Small was raised in Orange County, Ca. and graduated from Howard University.
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The success of a charity often depends on more than the number of gowns and black bow ties parading at a fundraising gala. It depends on more than the contributions of a chief executive shoveling dirt at a troubled elementary school. Or the mass of women in visors and pink T-shirts walking a 3K around the National Mall.

The success often depends on the data that gets churned up by the savvy analysts at a nonprofit group such as District-based GuideStar.

GuideStar combs through charity filings to produce reports on how groups spend their money, and that information is closely followed by donors who are trying to decide where to give their time, talents and treasures.

Over the past 10 years, president and chief executive Bob Ottenhoff has watched the demand grow for that data, generating revenue that rose to $9.7 million in 2010 from $2.8 million in 2000.

But donors don’t just want an analysis of IRS filings any more. They want to give to charities that make a palpable social impact, a quality that’s not always easy to measure. To stay useful, GuideStar needs to develop new yardsticks.

“That’s where GuideStar has got to go,” Ottenhoff said.

Ottenhoff recently announced that he is stepping down and making way for Jacob Harold, a 35-year-old foundation leader who has served on GuideStar’s board since 2010.

After studying literature and ethics in college, Harold worked for environmental organizations including Greenpeace and Rainforest Action Network.

During that time, he became familiar with the aggressive ways that often mark community activism. In a protest stunt against Ford Motor Co., some of his colleagues rappelled off of a building in downtown Detroit to hang a 50-foot banner. Harold bailed them out of jail that night. The next day he found himself in a suit speaking at the car manufacturer’s shareholder meeting about the need to build clean cars.

“To have the sort of impact that I think the world needs, I had to figure out how to wear a suit and multiply my impact,” Harold said. So he decided to go to business school.

“A business approach is not fully translatable to the nonprofit sector … but there’s no doubt that both sectors have a lot to learn from each other,” he said.

He spent a summer in India working on climate change for the David and Lucile Packard Foundation and in China studied the science of complex systems. Suddenly the world of philanthropy with all of its moving parts — donors, nonprofits, social impact — seemed a bit more understandable.

Harold eventually moved to Bridgespan Group, a nonprofit consulting firm that spun out of Boston management consulting firm Bain & Co. Consulting in 2000.

He then joined the William and Flora Hewlett Packard Foundation, an organization in Silicon Valley, where he managed a portfolio of $30 million. Harold was instrumental in providing grants to GuideStar and other nonprofits that look to answer tough questions around philanthropy.

Now a year and a half shy of the end of his term as a director, Harold couldn’t pass up the opportunity to bridge the world of big data to philanthropy.

“This felt like a great step for me,” Harold said.

Vanessa Small covers philanthropy and nonprofits for Capital Business. She also spotlights newly appointed executives in the New at the Top column, which chronicles their journeys to the top. Small was raised in Orange County, Ca. and graduated from Howard University.
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