July 22, 2024
How AI Fixes Public Goods Funding 💰
Levelling the playing field for small nonprofits and frontline orgs
AI fixes the public goods funding problem. To understand how, we first need to understand how public goods are funded today.
This post is inspired by numerous conversations since founding AI grant writer GrantOrb in January 2024. These discussions have sharpened my understanding of AI’s transformative role in public goods funding.
How do public goods get funded?
There are multiple mechanisms to fund public goods. Government funding via taxes collected from citizens is the biggest source. The second biggest is grants. When public goods and services are not covered by the government, the responsibility often falls to non-governmental organizations (NGOs) — aka nonprofits — which undertake programs to fill this gap.
These organizations rely on donations that come in the form of grants from big philanthropic organizations, wealthy individuals, and governments.
Obtaining grants requires filling out lengthy application forms that take weeks. Many nonprofits can’t afford professional grant writers to manage the process. Others struggle with English — it’s not their first language, and grant proposals must be submitted in English. Many mission-driven people are experts in their fields but lack the skill and time to write demanding grants.
Those with access to grant writers have an advantage in obtaining funds. This leads to an inequitable distribution of resources. Well-resourced organizations keep getting funded, while small frontline organizations doing great work are often left out — because they lack the time and resources to navigate the complex grants process.
AI changes this. It levels the playing field. Small nonprofits and one-person teams can participate in the grants process. Good English skills are not required. Weeks of work is unnecessary. Project leaders can write winning grants instantly and go directly to the source. AI democratizes access to grant funding. This is why I founded GrantOrb.
With GrantOrb AI optimized for grant writing, one can go from a project brief to a full compelling proposal in 5 minutes — saving over 95% time spent on grant writing.
Now you might say — “Wow, AI is incredible, but what about the poor foundations who’ll be inundated with applications?” AI helps them too.
Grantmakers are looking for great ideas to fund, and grant proposals are how they decide. With AI making grant writing accessible, funders will receive a more diverse range of projects with well-written proposals that communicate effectively and are aligned with the funder’s giving goal — a win-win for both the nonprofit and the foundation.
Imagine a human expert in all subject matters who never gets tired, can read thousands of documents instantly, is blind to all externalities, and simply follows predefined guidelines and rules. That’s an AI agent grant reviewer.
AI changes the grants game for the better. It makes public goods funding more equitable.
Web3 has been experimenting with novel ideas for funding public goods — quadratic funding, conviction voting. In theory these ideas are great. In practice, they’re plagued with favoritism and influence. AI fixes that too.
If you’re a grant seeker or grant giver and would like to chat about the role of AI in public goods funding, reach out here or on X or LinkedIn.
P.S. — I’m broadening the scope of this newsletter to cover AI, web3, and other technologies accelerating social good.
Originally published on Substack — read the original →.
