The $11.5 Million Lesson: How a Small Push Can Create a Big Wave of Good

Discovering TechSoup’s Reach

In my years of philanthropy, I’ve encountered many worthy organizations. TechSoup (TS) stands out for its unparalleled reach to the nonprofit and civil society sectors. TS offers a unique opportunity for funders seeking to achieve a big, broad, cross-cutting impact. So far, it has facilitated over $15 billion of free or discounted products to hundreds of thousands of nonprofits and civil society organizations across 236 countries.

While the scale of their operation was impressive, what really caught my attention was the potential for widespread impact. TechSoup wasn’t focused on a single cause or region – it was helping many. Organizations helping children deserve a better future will help them get one. Those working to promote equity and inclusion, combat climate change, protect democracies, and countless other causes are getting the technical capacity support they need to address these causes much more efficiently.

I found myself thinking, ‘Here is an organization with an exceptional track record. What would it look like if TechSoup was amply funded and able to fully realize its potential? How would that impact its ability to help its members? How would that improve the capacities of many more nonprofits and civil society organizations not yet in its network?’

The Time-Sensitive Situation

In early 2021, I learned that TechSoup was in the final stretch of an $11.5 million capital campaign. They had about six months to raise the remaining $3.5 million, with a deadline of September 21, 2021. Success would mean a significant expansion of their services, while failure would require starting its capital campaign over after years of effort.

This situation presented a compelling case for involvement. If TechSoup could reach its goal, the effects would ripple across the entire nonprofit sector, benefiting organizations working on a multitude of causes I care about.

An Unconventional Approach

I provided a modest grant specifically to hire an assistant for one of TechSoup’s key development staff members. This person reportedly freed up about 15 hours a week for a senior development person to focus on securing those crucial final donations.

The Outcome

As the deadline approached, I found myself increasingly invested in the outcome. By September 20, just one day before the deadline, TechSoup was still $700,000 short. I prepared myself for the possibility that my approach might not have been sufficient. However, on the morning of September 21, I was pleasantly surprised to learn that TechSoup had successfully reached its goal, securing the full $11.5 million just in time.

Reflecting on the Impact

The campaign’s success meant that TechSoup could expand its services substantially. For me, it validated the potential of stepping outside traditional philanthropic boundaries by focusing on opportunities as a priority criterion for providing funding.

Taking Risks

I am a venture philanthropist who takes risks where the outcomes could be extraordinary and the potential loss easily within my fund’s capacity to absorb. However, some opportunities have very low risk with the prospects of creating an exceptionally big, broad, cross-cutting impact.

Lessons Learned Over the Last Five Years

This experience reinforced several key principles that now inform my philanthropic efforts:

1. Look Beyond Predefined Categories: While having focus areas is valuable, being open to unique opportunities can lead to outsized impact.
2. Consider Systemic Impact: Supporting organizations that have a multiplicative effect across various sectors can be highly effective.
3. Value Capacity Building: Sometimes, helping an organization build its own capabilities can be more impactful than direct program funding.
4. Embrace Calculated Risks: When the potential for impact is significant, it can be worth departing from usual practices.
5. Appreciate Indirect Effects: It’s important to recognize the far-reaching effects of supporting infrastructure organizations like TechSoup, even if they’re not always immediately visible.

Thoughts for Fellow Philanthropists

I share this story to provide other funders with a non-traditional approach that has not only worked for me but exceeded my expectations. Based on my criteria, the impact I have achieved through this and other grants has far exceeded the costs.

While remaining true to our respective focus areas, I encourage others to leave some room for big, broad, cross-cutting opportunities that benefit the social sector. My experience suggests that the field for opportunity-focused grantmakers wishing to achieve a big, broad, cross-cutting impact is very promising. Sometimes small grants can drive big results, the space is anything but crowded, and many opportunities abound.