Tim McCarthy and the Business of Good

Book: The End of Fund Raising

Jun 1, 2011 4:30:00 AM / by Tim McCarthy

The End of Fund Raising
Written by Jason Saul [more]

Editor’s Note: I enjoyed Jason Saul's book Social Innovation, Inc. so much I decided to read his latest work called The End of Fund Raising.

In the book Saul poses a very compelling question: Why does it cost nonprofits on average $20 to raise $100, while it costs companies only $4?

According to the author the answer is simple: Nonprofits have no leverage. No one has to make a donation. And since most funders have no direct stake in the organizations they support, they make donations out of the goodness of their hearts. If funders feel like writing a check, they will. If they don't, they won't. As a funder myself, I agree with him 100%. The End of Fund Raising teaches nonprofits how to stop begging for charity and start selling impact.

Saul states, “One of the major limitations of our current approach to fundraising is that we see our work in terms of programs and activities to be funded or underwritten rather than outcomes that can be valued and sold.”

I conclude with a couple questions: how well defined is your value proposition (outcomes and impact) – and equally important – how well can you articulate it to your stakeholders?

Read excerpts of The End of Fund Raising

Watch Jason Saul at the Satter Conference of Social Entrepreneurs

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Tim McCarthy

Written by Tim McCarthy