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ChaseAdam17's profile
Chase Adam
Chase Adam
Chase Adam
@ChaseAdam17

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Chase Adam

@ChaseAdam17

Sometimes I leave my phone on during takeoff. Cofounder, Watsi and Meso.

Internet
meso.health
Joined October 2011

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    1. Chase Adam‏ @ChaseAdam17 Aug 13

      1/ After 10+ years in the nonprofit sector, I’m convinced that relying on donations is an ineffective way to scale impact. Here’s why the donation trap is a broken model:

      8 replies 26 retweets 83 likes
      Show this thread
    2. Chase Adam‏ @ChaseAdam17 Aug 13

      2/ Fundraising doesn’t scale well. The bigger nonprofits get, the more money / time they spend fundraising, and the less they spend on programs that help people.

      2 replies 2 retweets 7 likes
      Show this thread
      Chase Adam‏ @ChaseAdam17 Aug 13

      3/ Some people think this is ok. The argument is that while impact per dollar may go down as nonprofits scale, the total impact (eg # people helped) may increase. “Nonprofits should be able to invest in growth for future returns just like Amazon!”

      9:00 AM - 13 Aug 2018
      • 1 Retweet
      • 5 Likes
      • Sadman Sadek Oussama Ammar Kendra Ott Tikhon Bernstam Jennifer 8. Lee
      2 replies 1 retweet 5 likes
        1. New conversation
        2. Chase Adam‏ @ChaseAdam17 Aug 13

          4/ The flaw in this argument is that donations are a zero sum game. They’ve been 2% of GDP in the US for 40 years. The American Red Cross isn’t expanding the pie. They’re “raising” $2B that likely would have gone to other nonprofits.

          2 replies 1 retweet 5 likes
          Show this thread
        3. Chase Adam‏ @ChaseAdam17 Aug 13

          5/ Nonprofits fight this issue by claiming they only spend x% on fundraising. Usually, this is inaccurate and results from institutional pressure + accounting gymnastics + fuzzy definitions about what constitutes “programs” vs “fundraising” as a % of people’s time.

          1 reply 1 retweet 5 likes
          Show this thread
        4. Chase Adam‏ @ChaseAdam17 Aug 13

          6/ In summary, the bigger nonprofits get, the more they focus on fundraising, the less they help people, and the more we would have all been better off if that money had gone to smaller, better nonprofits.

          2 replies 3 retweets 12 likes
          Show this thread
        5. Chase Adam‏ @ChaseAdam17 Aug 13

          7/ How should nonprofits grow? There are a few good models that can help avoid the donation trap:

          1 reply 1 retweet 4 likes
          Show this thread
        6. Chase Adam‏ @ChaseAdam17 Aug 13

          8/ One option is to stay small and only ever raise $x / spend y on fundraising. These nonprofits can be some of the most impactful per dollar spent, but they’ll never scale.

          2 replies 1 retweet 6 likes
          Show this thread
        7. Chase Adam‏ @ChaseAdam17 Aug 13

          9/ Another option is to use donations to find a revenue model (similar to how startups use VC). The more these nonprofits help, the more they earn, the bigger they get. Issue is it doesn’t work for everything (e.g. treating very poor patients).

          2 replies 1 retweet 7 likes
          Show this thread
        8. Chase Adam‏ @ChaseAdam17 Aug 13

          10/ Improving government is also very impactful. Govs control vastly more resources than nonprofits, and they have a revenue model: taxes!

          2 replies 1 retweet 10 likes
          Show this thread
        9. Chase Adam‏ @ChaseAdam17 Aug 13

          11/ I’d love any data or examples that contradict this hypothesis. I’m open to changing my mind if proof or even compelling counter examples are there. I’d also love to learn about more alternative models.

          3 replies 1 retweet 4 likes
          Show this thread
        10. Chase Adam‏ @ChaseAdam17 Aug 13

          12/ Lastly, I hope people don’t interpret this as “all nonprofits are broken” because that’s not the case. Lots of nonprofits are doing great work. But please don’t keep donating to / building nonprofits that raise more and do less. The donation trap is a broken model.

          4 replies 3 retweets 15 likes
          Show this thread
        11. End of conversation
        1. New conversation
        2. Kevin Barenblat‏ @barenblat Aug 20
          Replying to @ChaseAdam17

          Does impact per dollar go down as nonprofits scale? Should go up, right? Or is the argument that the people you’re impacting need it less as you scale beyond the initial target market? Or that the cost to reach them goes up because you already impacted the “low hanging fruit”?

          1 reply 0 retweets 0 likes
        3. Chase Adam‏ @ChaseAdam17 Aug 21
          Replying to @barenblat

          Yes, I’m arguing impact per dollar goes down as nonprofits scale bc they spend more $ / time per dollar on fundraising. The problems that arise from having one group pay while another benefits seem to compound as nonprofits scale.

          4 replies 0 retweets 0 likes
        4. Kevin Barenblat‏ @barenblat Aug 21
          Replying to @ChaseAdam17

          On what basis are you making the argument? Does the data show that larger nonprofits spend > budget % on fundraising? I don’t often hear that. That said, nonprofit work often doesn’t scale like software. Nothing scales better than SaaS. And how much of it’s $8B budget does ...

          1 reply 0 retweets 1 like
        5. Chase Adam‏ @ChaseAdam17 Aug 21
          Replying to @barenblat

          No, the data doesn't show larger nonprofits spend more on fundraising. It says the opposite! I'm arguing that self-reported data is not accurate (see accounting gymnastics tweet). Also not sure why we're comparing nonprofits to software/saas, we're a nonprofit and we sell saas.

          0 replies 0 retweets 1 like
        6. End of conversation

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