Pablo Eisenberg rightly points out the crisis facing charitable giving today in today's Wall Street Journal Report. He uses the better of a full page of print to outline his recommendations for how foundations and others can make a difference for nonprofits and their beneficiaries. While one can agree or disagree with the list – readers of this blog no doubt agree that to formalize strategy management, reporting and execution using a Balanced Scorecard would go a long way to addressing the challenges the author outlines.

The nine changes that Mr. Eisenberg proposes include: 1)Increase distribution percentage, 2)Increase general and operating support, 3)Increase multiyear funding, 4)Adopt rolling grant making, 5)Allocate more funds to the truly needy, 6)Reach out to local groups and underserved regions, 7)Simplify application and reporting procedures, 8)Improve public accountability, and 9)Fund the watchdogs.

While the author's specific views might spark an interesting debate – I agree strongly that visibility, accountability and predictability will enhance performance of nonprofits across the board. We should work together as a critical sector of our economy to make more of this a requirement. Whether we use a Balanced Scorecard or some other form of logic model – formalizing strategy and communicating strategy performance will allow philanthropists to see the strategic impact their funds can have.

Watchdogs, foundations and nonprofits themselves to date have fueled some of the challenges Mr. Eisenberg points out. Watchdogs have created the bias toward program based funding rather than unrestricted or general operating support. Nonprofits are forced to "disclose" the percent of resources that go to operations. It is as if having an organization that can achieve scale, attract talent and drive impact is a problem. Foundations have created other problems as their own book keeping requirements have created such bureaucratic procedures that "the grant you cannot afford to win" has become common place. And finally, nonprofits themselves have not held themselves to the level of accountability and transparency befitting a charitable organization. They should be forthcoming with their strategy, perhaps depicted in a strategy map. They should report results perhaps through a balanced scorecard. They should celebrate the learning that comes from true strategy management. Only then will philanthropists be willing to "invest" as partners in the long term strategy of our mission driven organizations.

To see Pablo Eisenber's articl see wsj.com/reports