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)

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

Right now, there is a movement in churches and nonprofits arguing that charity is toxic, that helping hurts, and that the entire nonprofit sector needs to be reformed to truly lift people out of poverty. These charity skeptics are telling Christians that traditional charity deepens dependency, fosters a sense of entitlement, and erodes the work ethic of people who receive it. Charity skepticism is increasingly popular; and it is almost certainly wrong.

Now available from Wipf and Stock’s Cascade Books imprint, Radical Charity: How Generosity Can Save the World (And the Church) weaves together research and scholarship on topics as diverse as biblical scholarship, Christian history, economics, and behavioral psychology to tell a different story. In this story, charity is the heart of Christianity and one of the most effective ways that we can help people who are living in poverty. Charity—giving to people experiencing poverty without any expectation of return or reformation—can save the world and help make God’s vision for the church a reality.

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