We’ve all heard the complaint: Nonprofits, even some of the great ones, just can’t get to the scale needed to have real impact. And funders, even ones that believe in these nonprofits, too often won’t lift a finger to help organizations really break out.
Well, here’s a story about a funder that set out to break this familiar pattern, and what it learned.
In 2007, the Edna McConnell Clark Foundation (EMCF) launched something called the Growth Capital Aggregation Pilot, which was a collaborative funding effort to mobilize $120 million in capital to “propel the growth of effective nonprofits poised for scale.”
The foundation was taking some big risks. It was taking a risk on the three social service grantees in which it initially made exponential investments. It was also risking its time and money, as it not only rounded up a number of funders to join the effort, but greatly increased its own investments.