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Yale Gives Tips on Donor Effectiveness

A 2008 article in Yale Economic Review (Steven Radelet and Ruth Levine (Summer, 2008) "Can We Build a Better Mousetrap? Three New Institutions Designed to Improve Aid Effectiveness" p. 42) cited seven common criticisms of foreign aid programs. I was struck by how perfectly that list aligns with the concerns of major donors and foundations I have advised.

  1. Donors are insufficiently selective.
  2. Donors support projects that do not sufficiently reflect local priorities.
  3. Donors set up grant application processes that are too bureaucratic and time consuming for charities.
  4. Donors support projects with multiple preferred results in mind, forcing recipients to be fragmented and counterproductive in their programming.
  5. Donors do not collaborate with other donors, leading to inefficient proliferation of various programs.
  6. Donors rarely measure results, and make gifts regardless of recipients’ performance.
  7. Donors make gifts in amounts that are too small to make a significant difference, and without plans for future sustainability.

If you have ever found yourself frustrated with these challenges to effective giving, it may give you comfort to know that Yale economists share your pain.

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