Funding

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- Tom Suddes

Learning Library / Funding / Relationship Based Funding Model / No More Cash To Endowment

Funding

No More Cash To Endowment

This is an issue that we believe impacts all FOR IMPACT ORGANIZATIONS. We’re caught up in an endowment arms race. We’re communicating that “We need ENDOWMENT now to build and preserve ENDOWMENT for future generations”.

ENDOWMENT, in and of itself, is NOT the goal! The goal is and always should be around Saving Lives, Changing Lives, Impacting Lives, etc. And if that doesn’t get your attention, how about: No More Cash For Endowment

CASH is a very, very expensive and difficult way to increase endowment. Very few investors want to give you their money … so you can invest it … with an average of 5% return … which will then be used to fund some important priority.

Here’s a pretty simple way to look at it: A 5% IMPACT vs. a 100% IMPACT.

Money to endowment (5%) … or money to fund people, programs, and places that help deliver your IMPACT … NOW (100%).

*Plus, many of these investors are making five-year commitments/payments and have to ‘wait’ to see the results and actual use of the funds.

Note: As entrepreneurs and who work with a lot of business and social entrepreneurs, we would ask this question: Would a great business or business model … one that is growing and scaling their IMPACT … take revenue (cash) and put it in the ‘BANK’ and then try to fund their growth … from their INTEREST INCOME?!!! Here’s what every truly successful entrepreneur would do –  They’d go to a bank or to angels or to the market and BORROW MONEY (not put money in) so that they can LEVERAGE every dollar … in order to GROW AND SCALE … their IMPACT … RIGHT NOW!