There’s no such thing as free money / ranting on granting

1. Grants can lock you in prematurely

When you take a grant you psychologically commit to doing the thing you said you'd do, sometimes too early. You might still need time to traverse the idea maze — but to get a grant, you’re often forced into articulating a vision of what you’d do with that funding

Unrestricted funding is a bit better, but even if the grant is explicitly unrestricted, you’ll likely feel honor-bound to do things that the grant-giver would approve of.

2. “Grantmaker capture” — your grantmaker will shape your values

“Audience capture” describes the phenomenon where bloggers, influencers etc are slowly manipulated into different people as a result of the audience they try and cater to.

I think there’s a lesser (but real) version of this, where by taking on money from a particular grantmaker, you end up adjusting you (or your org’s) values to appeal to that grantmaker.

3. Grants give you worse feedback/impose less discipline than the free market

When you make something to sell to customers, you’re playing the game on a fundamental, base level: is your product any good?

When you make something to “sell” to a grantmaker, you’re playing one level higher: does your grantmaker think that your thing is good for <the world/the future/some other value system>?

Feedback and discipline are good — they encourage you to improve, and become more sustainable

Taking one grant puts you down the path of needing to take more

4. You take on reputational risks

People care about where you get your money:

I don’t think it’s a bad idea to accept money from an unimpressive/unknown funder — money is money! — but it is something to think twice about.

(Obligatory note: sometimes FTX happens. TBH I think this wasn’t actually bad)

Grants implicitly nudge you to inflate your costs