Your Giving Toolkit
How do we know that our donations are making positive social change? It has to do with the data that guides your giving.
There is a need to go beyond sharing stories to articulating impact using data. This enables donors to understand whether their money has been put to good use. However, data-driven capabilities remain low in the sector. In the NCSS Sector Survey 2018, donors, partners and members of public rated charities lowest in their ability to use data and evidence in programme development.
To strengthen the capabilities of our grantee partners, TMT has developed a framework and basket of metrics to measure the outcomes of our funded initiatives across funds. More details can be found in our social impact report.
Not every social need is equally addressed. Some causes appeal more than others. Similarly, not every need in the sector is equally supported. Some charities are better supported than others.
Social needs
Our observation is that some donors may prefer to give to immediate and direct needs from targeted segments of the population (e.g. food distribution to families from rental communities). While it is useful, we also think it is important to fund catalytic longer term projects that seek to help disadvantaged groups find sustainable employment which can provide them a stable foundation for their families.
Sector needs
The majority of funding is directed towards IPC charities. Charities that are in the process of attaining their IPC status struggle with securing donors. There are promising charities in this stage that could do with more support.
Will your funds significantly add immediate capacity and capability to charities? Or will it sit in an accumulated fund or parked away in reserves?
The utilisation rate of pooled funds in the US was merely 23.8% in 2022. This means that most donations do not get mobilised quickly to meet urgent needs on the ground.
At TMT, we have set ourselves an ambitious goal of achieving 100% commitment rate within 12 months, and 95% utilisation rate within 24 months of the fund raised date.
On Reserves
Most charities try to hold between 1-2 years of reserves. Those above 2 years are generally deemed to be well funded. Conversely, those below 1 may be facing financial diculties or tend to be newer charities that are in the midst of building reserves and hence would require more support.
If we fund alone, we often do not see the bigger picture. Together, we can go further.
Ideas and initiatives that have longer-term systemic impact require more resources which is typically more than what 1 single funder can provide.
Our observation is that funding parameters can limit the ambition of charities. A lower funding cap tends to attract shorter term, project based and one-off proposals.
Donations can create positive ripple effects when done right.
One example of a fund with a multiplier effect is The Maybank Momentum Grant. It was designed as the first of its kind recyclable grant which facilitates a pay-it-forward cycle where over time, small charities who received our funding contribute towards supporting other future small charities.
Another illustration would be our investment in ground-up and peer-led projects which complements charity partners to leverages the collective goodwill and effort of the wider community.