Our theory of change
A theory of change is a working hypothesis, which sums up the change we are seeking to address in the world, and how we go about it. This is ours.
Amplifying impactful change-makers, exponentially.
The funding gap
Thankyou generates and redistributes wealth using a social enterprise model, and practises trust-based philanthropy, funding impactful partners to help build a world where not one person lives in extreme poverty.
A world where not one person lives in extreme poverty.*
*Extreme poverty is defined as living with per capita household consumption below 1.90 international dollars per day (in 2011 PPP prices). International dollars are adjusted for inflation and for price differences across countries.
Extreme poverty affects 736 million people – who live on <$1.90 a day1. They are deprived of education, healthcare and adequate living conditions, and suffer from poorer health, economic, and educational outcomes2.
The funding gap
The UN’s Sustainable Development Goals (SDGs) call upon individuals and societies to end extreme poverty by 2030. However, there is a real funding gap. It is estimated that the funding gap is $2.5 trillion per year3.
To serve people living in extreme poverty, solutions must address the complex root causes of poverty. But often donors can actually harm the communities they’re serving.
A recent study showed that funders – in trying to do good – were responsible for 46% of program failures4. We tend to fund charities that look and speak like us, and tangible activities that make sense to us. Instead, we need to trust in the capabilities and understanding of local organisations and communities to uncover root-causes and solve issues.
Discover more about this in our annual letter: The system is broken, we helped break it
1Source: World Bank. 2018. Poverty and Shared Prosperity 2018: Piecing Together the Poverty Puzzle. Washington, DC: World Bank https://www.worldbank.org/en/publication/poverty-and-shared-prosperity on the 3/08/2020
2For example, on the long-term impacts of undernutrition see Martins, V.J.B.; Toledo Florêncio, T.M.M.; Grillo, L.P.; Do Carmo P. Franco, M.; Martins, P.A.; Clemente, A.P.G.; Santos, C.D.L.; Vieira, M.F.A.; Sawaya, A.L. Long-Lasting Effects of Undernutrition. Int. J. Environ. Res. Public Health 2011, 8, 1817-1846. On the impacts of inadequate sanitation, see Singavarapu, Praneet & Murray, Emmanuel. (2013). Impact of Inadequate Sanitation on the Marginalised. For impacts on child poverty please see Ahmed H. Effects of poverty on child health and paediatric practice in Nigeria: An overview. Ann Afr Med [serial online] 2007. Source: http://www.annalsafrmed.org/text.asp?2007/6/4/142/55705.
3UNCTAD 2019 Annual Report. Source: https://unctad.org/annualreport/2019/Pages/index.html on 3/08/2020
Thankyou aims to help close the funding gap required to end extreme poverty by 2030. We aim to redress the power imbalance between donor and doer by generating and redistributing wealth, using social enterprise and trust-based philanthropy to amplify change-makers exponentially.
Thankyou will generate and redistribute wealth using a social enterprise funding model
Thankyou is a vehicle to redistribute wealth, created through the $63 trillion in annual consumer spending, by giving consumers alternative choices.5 We also hope that by scaling up and replicating our model, other organisations join us in committing to eliminate extreme poverty.
We believe we can inform and empower millions and in time, billions of consumers to tackle extreme poverty – to amplify the work of our partners and the communities they serve. Ultimately, we hope to help change the mindsets and behaviours of donors, individuals, business, and governments to a ‘trust-based’ model of giving.
Practising trust-based philanthropy
We believe in partnerships grounded in trust, and rooted in humility, transparency, curiosity, and collaboration6. A trust-based philanthropic model helps us to be aware of and mitigate the power imbalance between funders and doers.
Thankyou’s commitment to our partners:
- Provide multi-year, unrestricted funding, giving our partners maximum flexibility to deploy and use funding where there is the greatest need
- Reduce the duplication of administration and reporting requirements of our grants, to free up our partners to do more life-saving work and increase administrative efficiency
- Provide honest, timely, responsive, accurate and clear communication
- Commit to learning with our partners and the communities we serve, to help shape and inform our decision making
- Seek, and act upon partner feedback, so we stay accountable to our partners
- Build an internal culture that embodies these values
- Provide partners with non-monetary support to help amplify and realise their mission
Funding impactful partnerships
We believe in partnerships. Because when it comes to identifying and solving the causes of extreme poverty we don’t have all the answers. Real change relies on the ingenuity, passion, and innovation of local communities, governments, businesses, academia and NGOs.
In our interconnected and complex world, multiple variables have a cause-and-effect impact on the poor. Thankyou works with partners who understand this, by funding them and their solutions.
Our impact partners:
Are impact-driven to create measurable, positive change through their programs. Because of the immense responsibility in serving extremely vulnerable communities, our Impact Partners rigorously monitor and evaluate their programs, to ensure their approach has a positive impact.
Have an endgame. Change is only sustainable if the Impact Partner can transition their programs to local stakeholders, whether civil society, business or government (or a combination). They know philanthropic approaches are short-term, and focus on involving scale partners right from the start.
Think critically about changing systems. Impact Partners find sustainable solutions that tackle the causes of poverty, and address challenges at micro, meso and macro levels. There’s no one-size-fits-all approach, so they work hand in hand with government, business and communities, drawing on local expertise and knowledge.
Have a remarkable team. Our Impact Partners are high in character and in competence. They have a proven track record, are dedicated to serving vulnerable communities with empowering solutions, and have grit and perseverance. They are also backed and governed by an engaged and empowering board.
5Worldbank data on Final Consumption Expenditure - Final consumption expenditure is the sum of household final consumption expenditure and general government final consumption expenditure. Source: https://data.worldbank.org/indicator/NE.CON.TOTL.CD on the 02/08/2020
6Please read more about the principles of Trust based philanthropy here https://trustbasedphilanthropy.org/