Vu Le: Why Budget Testing is a Terrible Way for Foundations to Determine Funding Allocation

Budget Testing allows a larger nonprofit to be able to grow, while smaller, grassroots organizations continue to struggle. Getting 10K, while great, is not nearly as helpful as getting 100K. With 100K, you can hire a full-time exempt person, an essential element in organizational growth. With 10K, you can’t do much; if you’re lucky, you may be able to Frankenstein some other sources of funding together to get a part-time person, or pay for other elements to help your program to limp along. It’s like telling a kid, “Because you’re so little, I’m going to give you a few cheerios. When you grow big and strong, I’ll give you more and better food.” The flaw with this argument is that kids cannot grow just by being fed a few cheerios every day. (Despite my 2-year-old’s insistence otherwise)