Friday, February 24, 2012
Multiplication Philanthropy - Dan Pallotta - Harvard Business Review
Multiplication Philanthropy - Dan Pallotta - Harvard Business Review: The cutting edge is investment in fundraising. Yet everyone tries to suppress it, invoking a flawed theory of social change that says the less you spend on fundraising, the more you have for programs. That's true if it's a zero sum game. But it's not. Imagine a $10 million pie with $8 million going to programs and with the 20% fundraising slice taking $2 million away from programs. The last thing we want to do is make that a $3 million slice, leaving only $7 million for programs. But that's not how it works. If done correctly, the extra million enlarges the pie — substantially. A $10 million pie becomes a $15 million pie, and the $7 million available for programs grows to $12 million.