As organisations receive more funding, the value of extra funding changes. This is relevant for donation decisions. People have used various concepts to discuss this feature:
- Room for more funding
- Funding gaps
- Diminishing (marginal) returns
In this pair of posts I discuss what people might mean by these different terms:
- Defining returns functions and funding gaps sharpens up the definitions of these terms.
- Selecting the appropriate model for marginal returns analyses the strengths and weaknesses of different models
The second post is co-authored with Owen Cotton-Barratt. He provided many of the ideas in the posts.
Fair question. This argument is all conditioned on A not actually having good ways to expand capacity -- the case is that even then the funds are comparably good given to A as elsewhere. The possibility of A in fact having useful expansion might make it noticeably better than the alternative, which is what (to my mind) drives the asymmetry.