Giving Compass' Take:
- Dan Schoenfeld explains that scaling grantmaking practices to make the most impact can happen by ensuring three key components at a foundation: avoiding bottlenecks, automation, and building efficiency for rapid response grantmaking.
- How can donors utilize technology to bring about all three of these components?
- Read about the impact of long-term grantmaking and how to improve foundation processes.
What is Giving Compass?
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The key to lasting impact is the ability to scale and adapt. When you’re able to share, reproduce, and generate impact beyond your original reach – everyone benefits!
A key way to truly scale is with technology. A robust grants management platform brings with it automation and efficiency – saving foundations from having to overhire in order to meet their needs or overburden their current employees.
Bottlenecks
A critical reason to invest in scalability now is to avoid future bottlenecks. When a foundation only has one person who knows how to process a grant from beginning to end, this can create frustrating bottlenecks when that person is sick, takes time off, or leaves the organization. Like any industry, the philanthropy space has its fair share of turnover. No foundation wants to discover that the keys to its grantmaking processes are held in convoluted spreadsheets or documents that are dependent on a key player that is no longer available.
Automation
The need for automation heavily contributed to the rise of software as a service (SaaS) platforms. Technologists recognized that there was a growing need for teams to automate and scale in the digital age. At Fluxx, we saw a need to automate key grants management tasks and processes so foundations and nonprofits could focus their time on relationship building, impact, and insight.
True Efficiency
A foundation’s impact is closely tied to its ability to build capacity. Enabling nonprofits to make the most of a grant is a great way to reduce your grantee’s burden. Efficiency opens up so many possibilities – the most important being the potential for rapid response grantmaking.
We define efficient scalability as the act of expanding and taking on new challenges as an organization, while simultaneously alleviating burden.
Read the full article about scaling grantmaking by Dan Schoenfeld at Fluxx.