The biggest issues the charity and nonprofit space face stem from the fundamental differences between the for-profit and not-for-profit space. Dan Pallotta, author of Uncharitable and TED talk speaker outlines these issues very well. A key difference is how these spaces get capital. The for-profit space receives its capital through investments and the not-for-profit space receives its capital through donations.
At Trellis, we believe charities and nonprofits don’t have to choose one over the other.
Stop donating and start investing
What if we were to start investing in charities? That doesn’t mean expecting a monetary return necessarily, but it does mean expecting a social return.
The future of giving needs to be investing, where individuals can invest in a charity or nonprofit and receive a certain return in impact to the cause they care about. People are starving for a greater understanding of how much impact their giving creates.
People would rather go to an event and support a cause, than simply just give a donation. Many businesses and individuals are longing to get connected with purposeful causes. People want to make a difference in your community, and when they use Trellis, your charity or nonprofit can provide them with simplified ways to champion your cause.
Currently, the word donation, although is still a good thing, is not taken as seriously. It says that you will never see a return on that money; when you give, you receive a sense of fulfillment knowing that you helped out, and then you move on.
When people give, they want more.
When you give, you are involved, you are engaged with the cause, and you want to be updated on what your money did or is doing.
we need to start talking about our giving in terms of investing
So next time you are asked to donate, take a look and see what return you will get for your dollar. What sorts of impact yield can you receive on your charitable investments?
If everyone started to give like that we would be getting a lot more social returns. Maybe even make some real change.