Can We Multiply Donations?

A recent blog, You Say You Want Impact, posted in the Harvard Business Review challenges the typical approach to grantmaking. The article highlights the reality that funders want to see and be about impact. We want to fund progress. But are we going about it the right way?

Ministries know the hardest thing to get funding for is general operations, and the idea of getting funding for fundraising is almost laughable.  Supporters want to give to programs and projects – successful programs and projects. But what if the logic behind funding impact changed?

The article states, “The way to maximize impact is to fund a revenue engine that can multiply the dollars you are contributing — it is to fund the fundraising and development arm of the charity in question, not the actual program that’s making a difference. In making fundraising more robust, you create a multiplier effect: Your donation has the potential to dramatically increase the amount of money flowing in to fund the program. If you fund the program itself, your donation will have zero multiplier effect.”

The logic is simple – brilliant, yet simple.  Don’t give fish – develop the fishermen. Sound familiar?

This is one reason I am excited about bringing Mission Increase to Kansas City. The Mission Increase model is based on such logic. It’s about growing in the skill of fundraising that brings the biggest bang for the buck.  Want more? Join us February 10, 2011.

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Posted in For Givers, For Ministry. Tags: , . Comments Off on Can We Multiply Donations?
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