“Funding Diversification is a Tradeoff” by Joey🔸

TL;DR: I think funding diversification is an easy thing to pitch as positive, but it comes with real tradeoffs to growth and time spent fundraising. In this post, I go into why I think these trades are not obvious but still end up thinking they are worth making. Mainly because I think it's good practice not to aim for the maximum amount of money you can get, but instead the sweet spot of where you produce the most impact per dollar. Funding Diversification is Good I think the first but pretty uncontroversial point is that both funders and charities prefer having funding diversification for practical and psychological reasons. I suspect other posts have and will continue to cover this point well, so I will not really dive into it deeper here. Funding Diversification has Heavy Tradeoffs Broadly, I think aiming for more diversification is virtually never free [...] --- First published: November 4th, 2024 Source: https://forum.effectivealtruism.org/posts/ZAMZh3D48NLsjJuJm/funding-diversification-is-a-tradeoff --- Narrated by TYPE III AUDIO.