Steve Goldberg, author of Billions of Drops in Millions of Buckets: Why Philanthropy Doesn’t Advance Social Progress, writing on Tactical Philanthropy:
Fundraising relies on building relationships with prospective donors and telling engaging stories about the nonprofit’s work.It represents the personal connection of philanthropy, one that’s inherently time-consuming and labor-intensive. Moving money is data-driven: it depends on creating new value from market intelligence.
Fundraising is useful for even small donations, but spending time and effort to move money around only makes sense for sizable, usually aggregated funding looking for investment opportunities that individual donors can’t find on their own. If nonprofit capital markets became more adept at moving money, it could reduce the need to repeatedly raise new money in small amounts.