EA - 5 Proposed Changes to the Funding System to Increase Org Survival and Impact by Deena Englander

Link to original articleWelcome to The Nonlinear Library, where we use Text-to-Speech software to convert the best writing from the Rationalist and EA communities into audio. This is: 5 Proposed Changes to the Funding System to Increase Org Survival and Impact, published by Deena Englander on April 18, 2023 on The Effective Altruism Forum.An approach I often use in my coaching is to pick the ONE thing, that if you could change, would have an exponential (or just the most) impact on the rest of your day. I propose that we use that mentality to pick the most easy-hanging fruit to help EA orgs be most impactful. I personally think that the ONE thing for EA orgs is mentorship and support - Charity Entrepreneurship does an excellent job of that, and it's a model that the rest of the funding community should incorporate. At the risk of sounding too critical, I will say that I think it's somewhat neglectful of funders to give people financial support to start their organizations, but not provide them with the right org infrastructure support to help them be successful.The objective of this post is to highlight key, easily actionable areas that would likely make all the EA funding dollars much more impactful.A few thought exercisesIf you, as a funder, knew that by giving each startup an extra 10% to create a healthier infrastructure, you would increase the survival rate and/or impact on average by at least 30%, would that be worth it?Say you have 2 organizations with the same agenda. One started with the right resources and guidance to create a healthy infrastructure, and the other without. What would you expect the difference in the overall impact and survival of each org to be?My Perspective of the Current LandscapeTo start with, I want to add a disclaimer that this article is based on my own experiential data with EA and EA-aligned orgs, as well as the experiences and perspectives of many other service providers in the EA space (see this article about EASE). This is by no means inclusive of all orgs and all problems - it is just my subjective perspective of the current systems.Here's how I assess the current funding landscape:FunderEntrepreneurObjectiveSpawn effective charities.Take an effective charity idea and bring it to fruitionMethodology (as I see it)Develop cause areas that should be funded. Attract applicants and initiatives. Vet applications. If the cause and numbers are in line with prior established metrics, approve and transfer funds.Do initial research, create a financial plan based on knowns, apply for funding, potentially receive funding, and report on progress annually.What’s often missingRisksEstablishing proper governance and complianceFinding talent that is good at leadership, in addition to researchAssurance that funds will be spent most wisely (minimizing investment risk)Metrics for survival rates and causes of failure (if they exist, I'd love to see them)Incorporating proper governance and complianceEntrepreneurial / business leadership experienceGuidance, mentorship and supportSupportive communityStrategic clarityWell-developed ToC and a plan to implementAccountability and supervisionA culture of asking for helpTrusted resources to support the org with supportive services and developmentWillingness to spend money on “non-essentials”, such as trainingHighest impact is often not achievedLow survival rate of young orgsMismanagement and slow growth in orgs, if anyBurnout of talent groupIneffective use of EA fundsUnable to grow effectivelyUnable to have ideal impactSlow, disorganized / hampered developmentHigher failure ratesBurnoutIncreased compliance and liability problemsMismanaged staffMismanaged fundsPoorly estimated budget -> not enough funds to implement wellProposed changes to the system:Have standard budget items that every startup should be including. For example, accounting, legal, marketing, ops, coaching, mentorship, community groups, HR, software, rent, travel, salary, benefits, hea...