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The first failure mode of single-use capital: surplus, capability, and intellectual property generated by grant-funded work escape the philanthropic system rather than recycling within it. The largest leakage occurs in the most successful grants, because success is where recoverable value is created.
A foundation funds an educational program that is later licensed into a fee-generating entity; the surplus accrues to whoever holds the operating rights, not the foundation whose capital made it exist. Leakage is not waste — it is value that did exist and flowed out.
SUA Section 3