Twenty and change years ago, Isaac was starting Seliger + Associates and expected to be hired by foundations and perhaps even some government agencies who might want help streamlining their RFPs or funding guidelines. Seliger + Associates has unusual expertise on grants, grant writing, and RFPs, which could, in theory, make helping funders part of the firm’s regular practice. Isaac imagined that funders would want real world feedback to improve the grant making process, make themselves more efficient and efficacious, ensure their money was being channeled in useful directions, and so forth. Even in the early days of Seliger + Associates, we knew a lot that could help funders, and we waited for the calls to start coming.
I was about ten at the time. Now I’m considerably older and we’ve long since stopped waiting. Funders, it turns out, strictly follow the golden rule in this respect: he who has the gold makes the rules. Funders routinely ask applicants and other stakeholders about how to make the world a better place, but they have no interest at all in talking to the people who could conceivably help them most with respect to the funding process. Isaac’s initial expectation turned out to be totally wrong.
Isaac and I were talking about the vast silence from funders in light of Mark Zuckerberg’s recent announcement that he and his wife, Pricilla Chan, plan to donate tens of billions of dollars to nonprofits in the coming decades through newly formed Chan Zuckerberg Initiative (CZI) LLC.* That’s a laudable effort and we’re happy they’re doing this. Still, we wonder if they’ll talk to people who toil daily in the grant writing mines to make sure that the funding guidelines CZI uses and the RFPs CZI issues are grounded in the reality of what would make it easiest to identify applicants most likely to achieve their charitable purposes with the minimum friction for nonprofits. Based on past experiences, we doubt it.
Despite the headlines you may have read, philanthropy as we know it is quite resistant to change—especially on the government side. On the private sector side, signaling and status are far more important than efficiency. Gates and Zuckerberg may be challenging the signaling dynamic, and we’re on their side in that respect, but we think signaling is too ingrained in human nature to have much effect. Overcoming signaling is hard at best and impossible at worst. Look at the way ridiculous SUVs continue to be a status-raiser among many suburbanites for one obvious, easy example of this at work. Geoffrey Miller’s book Spent: Sex, Evolution, and Consumer Behavior details many others.
* The name of the LLC, “CZI,” amuses us: it’s an unpronounceable acronym that sounds like a Cold-War-era Soviet ministry. The first rule of developing grant-related acronyms to to make them pronounceable.