On a whim, an NGO leader walks into a fortune teller's booth. "My NGO has developed a proven intervention that is improving the lives of 10,000 people. We expect increased philanthropic funding over the next year. Please tell me how our impact will grow over time."

Gazing intently into her crystal ball, the fortune teller replies, "You appear to be at a crossroad. The first path has your NGO expanding your direct services. By growing your staff, opening new offices, and strengthening your fundraising, your organization could reach 50,000 people in five years and double that in 10 years. That is 0.1 percent of the 50 million people who could benefit from your work."

"The second path is messier," continues the fortune teller. "It involves what Co-Impact calls system change and Kevin Starr has dubbed the 'Big Shift' in a recent SSIR article on so-called 'big bet philanthropy.' This path involves engaging the government on their priorities and working with them to adapt your intervention. In this path, you must take a low-ego, low-logo approach and let the government both lead and shine. Because your efforts involve influencing and supporting the government, my crystal ball cannot guarantee your efforts will be successful. But, if they are, you have the potential to help the government reach 3 million people in five years and 18 million people in 10 years."

The NGO leader's face lights up. "That's an easy decision," she says, "I want to maximize impact. Of course, I will take the second path."

"I am not so sure," replies the fortune teller. "Nearly all of your peers have chosen the first path. And philanthropists appear more comfortable supporting that path."

How Nonprofits Can Scale Solutions: Why Government Partnerships Are Overlooked

You don't need a crystal ball to see the inconvenient truth behind our homespun fable: the NGO sector and its philanthropic supporters often overlook the most effective pathway to scale solutions to our planet's biggest challenges—partnering with government.

As Starr highlights, too many recipients of increased philanthropy are missing the opportunity to make the “big shift” toward exponential impact through partnering with government. Truth be told, as our fortune teller observed, this shortcoming is not unique to recipients of big bet grants. It afflicts NGOs of all sizes and budgets, and will require changes from both NGO leaders as well as funders to unlock how nonprofits can scale solutions.

Read the full article about government partnerships for nonprofits by Rakesh Rajani and Tim Hanstad at Stanford Social Innovation Review.