PSC vs
Traditional Philanthropy
Traditional philanthropy assumes that a dollar donated is a dollar spent. PSC asks: what if that dollar could cycle forever?
The Terminal Problem
Traditional philanthropy is terminal: a donated dollar is spent, creates impact, and disappears. To continue helping, you need to raise new money. This creates:
Donor Fatigue
40% of donors lapse after first gift. Annual appeals exhaust goodwill.
Fundraising Overhead
20-30% of nonprofit budgets go to fundraising—money that doesn't serve mission.
Impact Ceiling
Impact = money raised × efficiency. Capped by fundraising capacity.
30-Year Impact: $100K Donation
Same initial gift, different architecture. PSC with 85% recycling rate creates 6.67× more cumulative impact.
Traditional: $100K impact (flat). PSC: $667K cumulative impact over 10 cycles (6.67× multiplier).
The PSC Difference
Capital Cycles
Instead of being consumed, capital is deployed, used, and then paid forward to the next beneficiary. The cycle repeats indefinitely.
Beneficiary Agency
Recipients aren't passive. They become active participants who decide when and how to pay forward, building ownership in the system.
Built-in Impact
Impact isn't claimed—it's structural. The recycling rate (R factor) mathematically determines total system value.
One Gift, Forever
Donors make one decision. No annual appeals, no donor fatigue. Their gift creates impact perpetually.
Feature Comparison
| Feature | Traditional | PSC |
|---|---|---|
| Capital After Use | Gone (consumed) | Recycled to next beneficiary |
| Donor Relationship | Annual appeals, donor fatigue | One-time gift, perpetual impact |
| Impact Duration | Until money spent | Perpetual (infinite cycles) |
| Beneficiary Role | Passive recipient | Active participant, future donor |
| 30-Year Total Impact | $100K (1×) | $667K (6.67×) |
| Admin Overhead | High (constant fundraising) | Lower (self-sustaining) |
| Emotional Simplicity | Simple: give, feel good | Requires understanding cycles |
| Immediate Control | Donor chooses recipient | System chooses based on rules |
Evolution of Philanthropy
Almsgiving
Direct cash gifts to the poor
Limitation: Consumed immediately, no lasting change
Endowments
Perpetual funds, 5% annual spend
Limitation: Capital locked, only interest deployed
Program Grants
Time-limited project funding
Limitation: Grant fatigue, impact ends with funding
Venture Philanthropy
Startup-style capacity building
Limitation: Requires high-growth contexts
Perpetual Social Capital
Gifts that cycle forward
Limitation: Requires pay-forward contexts