Renewal Decision Laziness
Foundations have a data visibility problem, and it's quietly compromising every renewal decision they make.
They already decided this organization deserves funding. The easiest thing is to say, let's do it again.
Renewals change for mainly two reasons:
The first is some clear signal that they should stop: The CEO left. A scandal. A financial disaster.
But those are really rare.
More likely is that foundations need to do due diligence on that organization again.
If the organization added dozens of new funders, including major ones, that is a strong signal.
If it lost a third of its funding, that is also a strong signal.
Both should materially affect a renewal decision, but foundations rarely see this data.
To get it, they have to ask nonprofits uncomfortable questions. Ones that introduce risk into an existing relationship.
So foundations don't do it.
Here's what makes this fixable: The data already exists, it's just not visible.
If foundations could see the complete funding landscape of every organization in their portfolio, renewals would be fully informed.
No awkward conversations required.
If that sounds useful, send me a DM. The Impala team is ready to help.
