In the social sector, nearly all organizations face the same constant tension: big missions with small resources. The result is often a pendulum swing between day-to-day urgency and long-term promise. Campaigns, projects, and partnerships all move forward, yet real impact doesn’t always grow at the same pace. In recent years, sector research has emphasized that the problem is not lack of inspiration, but rather lack of strategic execution and funding design—how to translate purpose into measurable results without burning out teams or sacrificing integrity.
The paradox of “doing more with less”
The gap between strategy and impact is not unique to the corporate world. Studies show that between 60% and 70% of strategies fail in execution, and the nonprofit sector has its own version of this gap: lofty goals, vague metrics, and fragmented efforts shaped by how work is funded. Moving the mission from PowerPoint into reality requires systems of prioritization, measurement, and continuous learning.
On top of this lies the “starvation cycle” (chronic underfunding of indirect costs such as operations, talent, and technology), which forces nonprofits to “perform miracles” with budgets that only cover program activities. This cycle—well documented by Bridgespan and others—erodes capacity, fuels burnout, and limits innovation. The solution is not to slash “overhead” (general administrative expenses) but to fund the real cost of producing impact.
From the overhead myth to smarter funding
For years, donors and evaluators penalized organizations for having “high administrative costs.” Today, consensus is shifting toward evaluating results and organizational health, not just financial ratios. Recent initiatives and publications debunk the “overhead myth” and argue for focusing on capacity, learning, and verifiable results.
At the same time, Trust-Based Philanthropy (TBP) is gaining traction: flexible, multi-year funding; lighter paperwork; transparency; and shared learning. This approach frees nonprofits to allocate money where it matters most and, above all, to iterate and improve.
Practical strategies to multiply impact (without losing your soul)
1. Radical focus on public value. Define clearly the change you seek (Theory of Change, ToC) and have the courage to say no to projects that are “nice” but peripheral. Fewer fronts, deeper transformation.
2. Impact metrics (not just activity). Counting workshops or beneficiaries matters little without indicators of outcomes (e.g., employment achieved, health improvements, reduced recidivism). The shift is from outputs (activities or products) to outcomes (results).
3. Frugal innovation and agile learning. The logic of Lean Impact—think big, start small, test and scale what works—enables iteration with rigor, even on tight budgets. It’s not about experimenting for its own sake, but about short cycles of hypothesis-measurement-adjustment.
4. Funding aligned with impact. Negotiate real costs with funders (including technology, data, and talent), secure flexible funds, and explore funder collaboratives (donor collaboratives) to tackle large-scale challenges.
5. Partnerships and platforms. Multiply reach through alliances with companies, local governments, and other civil society organizations (CSOs). Major calls such as MacArthur’s 100&Change illustrate how systemic problems require bold proposals, coalitions, and solid evidence.
6. A culture of care and high-value volunteering. Investing in people (staff and volunteers) is strategy, not luxury. Talent retention—and the organization’s ability to learn—often predicts future impact better than any single KPI (Key Performance Indicator).
A case in practice: “from endless projects to measurable impact”
A mid-sized nonprofit focused on youth employability had long offered popular workshops but lacked clear evidence of sustained job placement. It relied on project-based grants with strict overhead caps, which prevented investment in data tracking, digital tools, and staff training.
The shift came when the organization reframed its strategy and funding model: it renegotiated with two donors for flexible, multi-year funding that included the real cost of outcome measurement; joined a donor collaborative to share data infrastructure; and streamlined its portfolio into two focus areas (digital skills and corporate mentorship). It applied Lean Impact learning cycles: quarterly pilots with small cohorts, explicit hypotheses (e.g., “mentorship + workplace practice increases 6-month hiring by 30%”), and outcome metrics (employment at 6 and 12 months).
Within 12 months, the nonprofit reduced its number of projects from 14 to 6, increased its 6-month placement rate by 2.1×, and documented improvements in starting wages. The collaborative also attracted co-funding for a shared data platform. The key wasn’t “working harder,” but working with focus, coherent funding, and a learning culture that turned meetings into evidence-based decisions.
Conclusion: strategy is not a corporate luxury
For nonprofits, strategy is not a glossy plan—it is the ability to choose, measure, and learn in order to sustain impact. Breaking the overhead myth, securing flexible funding, measuring results, and collaborating at scale are proven levers to do more with less without losing purpose. Investing in internal capacity—people, data, processes—does not “waste money on administration”: it is investing in impact.
At Levare, we help design focused portfolios, pragmatic measurement models, and funding agreements aligned with impact, so that missions don’t remain on paper—they show up in the real world.