Thanks for your question pete!
The non-renewable default comes from a couple of things:
(1) we see these RFP grants as more experimental and hits-based than our standard portfolio. Weâre casting a wider net to find promising new efforts, and by nature not all of them will work out.
(2) we donât want to tie up most of our budget in renewal commitments, since that would limit our flexibility to respond to new opportunities.
That said, this isnât a hard rule. For organizations with a solid track record that we can see fitting really well into our portfolio on an ongoing basis, weâd definitely consider making renewable grants. And for orgs we seed through this RFP that end up doing well, weâd likely consider bringing them into our portfolio on a more ongoing basis further down the line.
Thanks for the question!
Youâre right that we often cap our funding at a share of an organizationâs budget, and that this is a deliberate choice aimed at encouraging funding diversification and long-term sustainability. That said, if weâre funding an organization, even below its full budget, you can assume we believe they are above our bar at their full projected budget. We use their full projected expenses when estimating the giving multiplier, so a partial grant from us is not a signal that we think the marginal dollar is low-value.
We have a policy of not publishing our individual grantee assessments. However, weâve discussed specific grantees with interested donors many times and are always happy to do so. If you know people who are considering donating to effective giving organizations and would find it helpful to hear our perspective, please donât hesitate to connect them with us!