Philanthropic resources are finite. What's worse, there is always a greater need than the resources available.
New approaches to partnerships are developing. Philanthropic interest are not focusing on building sustainable and growing businesses that have an impact.
Philanthropic dollars can be exponentially more impactful by transitioning philanthropic giving from traditional grant-based giving to investment or investment-like mechanisms. Rather than subsidizing the operating budgets of programs, cost-effective services can become the core of any nonprofit's future and the philanthropic dollars can be freed to seed new impact for tomorrow.
As a funder, everyone is trying to get the most out of you, but are you getting the most for your dollar?
Giving often stops with the gift. There is some measure of duties performed. Less frequently giving is tied to the impact the programs have and fewer are tied to formal measures and evaluations of those impacts.
Philanthropic interests can do better. Giving often only gets results once. The impact may ripple through a community, but that's most often where it stops. For the impact to continue, so must the giving.
Philanthropic dollars can go further. Rather than giving once, deploying capital through investment-like instruments is more impactful. A sustainable business-model can continue delivering impact for years to come.
Nonprofits are great at being nonprofits - at advancing the mission. Rarely are nonprofits good at being businesses and even that rare gem can need help working with philanthropic interests to align behind that vision.
Assessments of the core business models that nonprofits run and how those activities create value for external stakeholders can shed light on how to monetize impact with the goal of reinvesting in the mission.
For nonprofits, that means true financial sustainability and a free-cash flow to reinvest in the organization in ways that advance the mission.