The Compound Effect of Giving

Have you ever heard about the ‘compound effect’? Introduced by Darren Hardy, this concept is based on how small actions, executed consistently, can lead to hugely successful results, both in business and in life.

You see this principle at work when you’re trying to lose weight or get in great shape. A small adjustment in your diet or routine doesn’t result in an obvious impact at first…three months or even a year goes by and everything may look relatively the same. But give it two or three years and the differences can blow you away!

Over the years, I have applied this principle to my personal life with success, but it wasn’t until recently that I considered how the compound effect is also pertinent to giving.

How often have you reflected on the impact of your giving? 

I must admit that when I donate to the organisations I care for and support, I don’t often reflect on the long-term impact. I am not a major donor. My relatively small donations don’t always seem to have an immediate and tangible outcome. I am sure some of our Annual Appeal donors also feel that way.

We feel this way because our brains are hard-wired for instant gratification. For example, when you and I donate, it is still significant for us, but seems small compared to the needs of our institutions. We just can’t see our own impact.

However, when you and I give to our institutions year after year, as a collective, our impact compounds. Just like a snowball growing, every donation, no matter the size, helps us advance our own organisations, whilst at the same time building a culture of generosity.

So please, the next time you’re about to send out a solicitation letter or to host a giving day, don’t forget to set the example and give first.

Ana Gozalo 

Educate Plus SA/NT Chapter President