How we stay nimble: 3 reasons why we DON'T tie funding

01 Dec 2017

Impact is the new black. In the not-for-profit world, people want to know that their support is actually making a difference. And that’s smart. We’ve all heard too much about wasted funds, inefficient operations and less than perfect ethics, to just hand over our money and leave it up to an organisation to do their thing. Instead we want to know how our money will be used, and crucially how lives will be changed as a result of our support. We want to know: “What’s my impact?” So it’s no surprise that people sometimes ask us if they can tie their support to an individual girl or a particular program - so they know exactly how their money is being used.

But it might surprise you that our answer is ‘no’. In fact we actually do the opposite. In all but the rarest of cases, we work on a system where all donations go into a central ‘pot’ and our four girl-focused programs are funded from that one source. Whether it’s money from individuals or businesses, big campaigns like Do It In A Dress or school students running a bake sale - everything goes into that one funding pot that funds our four girl-focused programs: Scholarships,businessbrains, school awesomisation and launchpad

‘But hang on,’ we can hear you say. ‘Why wouldn’t you let donors decide how their money gets used - wouldn’t they feel more connected to the work you are doing?’ It’s a good question! And we understand why ‘tied’ donations seem like a great idea - but there’s 3 reasons why we don’t work that way.

The first one is probably pretty obvious. Managing tied donations would divert precious resources away from getting girls into school. There’d be more accounting for the finance team, more reporting for the comms team and way more overall administration - without increasing the number of girls in school.

Think about the systems and processes required to tie and track Mr Smith's $50 to Project X or Girl Y, so that we only gave him updates about Project X or Girl Y. Now imagine that system multiplied for THOUSANDS of small donations (most of our funding comes from private donations from thousands of people, rather than big wads of cash). You can see we'd need a whole lot more people and resources to do that. BUT - even if we could resource the tied-donations approach, we still wouldn’t work that way. And here’s why.

Unexpected events change everything

Say a whole lot of donors told us they wanted their money to go to our Scholarship program. To honour their wishes we would have to ensure the money was used to cover the cost of sending girls to school and nothing else. Normally that wouldn’t be a problem. There are so many girls who need that support. But what if all the schools closed for seven months because of an Ebola outbreak? Which is exactly what happened in 2015. If we accepted tied donations, all the money allocated to scholarships would have been locked up until schools reopened almost a year later. Instead, we were able to redirect funds to an urgent and incredibly effective Ebola education and support program that impacted thousands of people.  Later the same year there was severe flooding in Freetown, Sierra Leone. Many of the girls in our Scholarships program live in the Freetown slum communities, and when floods raged through the city the girls lost their homes and all their possessions - including their school materials. We were able to reallocate funding from our other programs towards replacing uniforms and school materials, so they could return to school as quickly as possible. Working in places like Sierra Leone and Uganda, you have to expect the unexpected - and respond quickly when it happens. Pooled funds let us do that - they give us the flexibility and adaptability that’s essential to our effectiveness.

Working from a central pool of funds lets us keep growing

Our focus has always been on educating girls. But sometimes other issues get in the way of achieving that goal. Like years ago when we heard one of our scholars had fainted in class from hunger. When we looked into the situation a bit more we discovered lots of girls were in a similar situation. We all know how hard it is to concentrate on your studies when you’re hungry - so we had to do something. emmanuel3 We launched a pilot where we gave 16 students access to small micro loans and taught them how to run a small business that would generate enough income to buy lunches, medication and other essentials. It was a huge success and today that program has grown and evolved into Business Brains, which has expanded to become one of our four girl-focused programs. If funds are tied to existing programs it’s incredibly difficult to find the resources to trial and grow new and innovative solutions to new problems.

Some programs are sexier than others

On the surface, some programs seem more important or interesting than others - (and therefore might attract more support) - yet in reality each program is critical. That's because each program addresses a different need or removes a different barrier to education and they work with each other.  If you take away one program or reduce its funding, our overall approach isn't as strong and holistic. If 70% of donors chose to support our Scholarships program, for example, our remaining programs would be underfunded and that would reduce our overall effectiveness. So the final reason we don’t tie donations to particular programs is that we don’t want to create ‘uneven’ pools of money that didn’t match the needs of the communities we work in. So that’s the thinking behind our ‘one big pot’ approach - and why it lets us maximise the impact of our programs. But it’s not enough for us to know we are maximising our supporters’ impact. Supporters have to know it too. They have to know how their money is being used and have a real sense that they are making a difference. This is what drive all our communications. It’s why we explain how we allocate  our funding and make our financials available for anyone to read. It's why we tell real-life stories about the girls we support and the changes in their lives. And that's why we share our challenges and problems as well as our successes. We want you to know the WHOLE picture and really understand what it takes for your donation to have an impact on the ground - so if you ever have any questions about this, please ask!  We're a team of development, girls' education, and fundraising nerds - so get in touch if you ever want to chat! And if you’d like to explore any of these areas more, here are a few links: Read about our financials Read a review of programs for 2016

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