emerging issues in grant-making
DESCRIPTION
This talk formed the introduction to a full-day engagement between the DG Murray Trust's staff and Trustees with practitioners across various fields. In this talk the DGMT CEO, Dr. David Harrison, outlines emerging issues in grantmaking. Additional comments are made by James Inglis (Trustee), Jeremy Ractliffe (Trustee), John Volmink (Trustee), Xolani Mtshizana (Keep Digging Africa), Andrew Venter (Wildlands Trust), and Robbie Campbell (DGMT Finance Director).TRANSCRIPT
Emerging issues in grant-making:Some key issues for consideration
Key issues
• Will ‘add-on’ or ‘add-up’ strategies achieve the greatest impact?
• Can grants portfolios be allocated more efficiently?
• Can smart foundations ‘outperform the benchmarks’?
• Can rates of return be increased through smarter investing?
• How much ‘risk’ is enough?
DGMT distribution compared with annual Government budget
DGMTDGMT
Annual Government budget
R100 m
R900 bn
DGMT distribution compared with annual budget of Departments of Education and Social Development (excl.
cash transfers
DGMTDGMT
Annual budget
R100 m
R200 bn
DGMT distribution compared with estimated combined annual distribution of foundation, bilateral & CSI funding
DGMTDGMT
Annual budget
R100 m
~R7 bn
DGMT distribution only has relevance if it is used to leverage other resources
DGMT
R100 m
Will ‘add-on’ or ‘add-up’ strategies achieve the greatest impact?
Financial resources
Impact
X X’
YY’
Add-on strategy
Will ‘add-on’ or ‘add-up’ strategies achieve the greatest impact?
Financial resources
Impact
X X’
Y
Y’
Add-up strategy
Will ‘add-on’ or ‘add-up’ strategies achieve the greatest impact?
Financial resources
Impact
X X’
Y
Y’
Add-up strategy
Can grants portfolios be allocated more efficiently?
Risk of failure
Impact
X X’
y
Y
Y’ ‘Efficiency frontier’
Can smart foundations ‘outperform the benchmarks?
Total resources available for a programme
Expected Impact
X X’
Y
Y’
Can smart foundations ‘outperform the benchmarks’?
Aggregate risk of failure
Impact
X X’
Y
Y’
Can rates of return be increased through smarter
investing?
Total finances available for a programme
Expected Impact
X X’
Y
Y’
Y”
X”
Full re-investment of profits into programme
Can rates of return be increased through smarter
investing?
Total finances available for a programme
Expected Impact
X X’
Y
Y’
Y”
X”
Partial re-investment of profits into programme
Can rates of return be increased through smarter
investing?
Total finances available for a programme
Expected Impact
X
Y
Non-financial ‘public good’ returns
How much risk is enough?
Risk of failure
Expected Impact
X
Y
Y’
?
?
?
Y”
