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Philanthropy’s Drag Coefficient: When Process Costs More Than Failure

The article argues that philanthropy’s administrative processes act like a drag coefficient, consuming resources that could otherwise generate impact. It compares high‑drag grantmaking—lengthy applications, frequent reports, site visits—to low‑drag, trust‑based approaches, showing that even a single failed grantee costs less than the cumulative loss from excessive overhead. By quantifying this “drag,” foundations can see that reducing bureaucracy often yields higher overall outcomes than tightening controls. The piece calls for funders to measure and align drag with the nature of each relationship rather than assume it adds value.