Dollars, Not Percents Giving Model
Design the business so its own products and cash directly fund the mission
- Difficulty
- Advanced
- Time to result
- ~ongoing to results
- Steps
- 6
- Confidence
- 91%
The Dollars, Not Percents Giving Model starts with the unit economics of impact: calculate what product and distribution are needed to change one person's life, then use profitable commercial operations to fund that delivery. Sawyer's domestic outdoor and insect-repellent businesses generate the resources, while the company can donate the same filters humanitarian partners need rather than first selling an unrelated product and donating leftover cash. Kurt distinguishes the actual dollars deployed from a public percentage-of-profit figure because product donations and research costs may be incurred before accounting profit appears. Full founder ownership also removes pressure from outside shareholders to maximise distributions. A related foundation can receive after-tax funds and outside donations while the operating company covers overhead. The output is a repeatable link between commercial success, product allocation, and a measurable number of people served.
Origin
Kurt explained on Coffeez for Closers why Sawyer measures mission spending in dollars and donated filters rather than relying only on a percentage of annual profit.
Core principles
- 01Real-world impact is measured in resources deployed rather than a headline percentage
- 02A company that makes the needed product can give it directly
- 03Profitable domestic operations can subsidise humanitarian distribution
- 04Ownership structure determines how freely a founder can allocate resources
- 05Mission spending can occur before or after reported profit
How to run it
- 1
Price the impact unit
Calculate the product, distribution, and support cost required to serve one person or family for a defined period. Use that unit to turn mission language into an operating target.
Pro tip Include distribution costs rather than quoting manufacturing cost alone.
Watch out A low product cost does not guarantee low delivery cost.
- 2
Build a profitable engine
Maintain commercial products or markets capable of funding the mission without depending on uncertain donations. Keep the operating company financially sustainable.
Pro tip Separate the revenue engine from the beneficiary's ability to pay.
Watch out Giving that weakens the operating company eventually weakens the mission.
- 3
Give the useful product
When the company makes the item beneficiaries need, allocate that product directly through qualified organisations. Avoid adding an unnecessary sell-tax-donate cycle.
Pro tip Use partners with field distribution and training capability.
Watch out Product donations without deployment support may fail to create lasting use.
- 4
Fund across accounting lines
Distinguish product donations and research costs incurred in operations from cash donated after profit. Measure the total dollars and products committed to the mission.
Pro tip Have qualified accountants structure and verify the treatment.
Watch out Do not confuse an accounting presentation with the underlying social result.
- 5
Protect mission control
Understand how shareholders, lenders, and governance affect resource allocation. Set enough financial discipline to preserve both the company and its ability to give.
Pro tip Make mission allocation explicit before ownership becomes more complex.
Watch out Founder control does not remove the need to keep banks, staff, and operations secure.
- 6
Report concrete deployment
Track filters, dollars, locations, partners, and people served. Use percentage claims only as a supplement to those operating measures.
Pro tip Connect every donated unit to a defined deployment programme.
Watch out A large headline percentage can hide a small or poorly delivered absolute contribution.
In the wild
Kurt said Sawyer expected to give away about 140,000 filters overseas in the following 60 days, with each filter serving between 10 and 100 people. The operating company makes the filters, covers the foundation's overhead, and works with a network of charities to distribute them.
→ Commercial product capacity is converted directly into clean-water access rather than only into a year-end cash donation.
Common mistakes
Optimising the headline percentage
A percentage of profit can omit product donations and operating research while saying little about the absolute resources delivered.
Giving without a profit engine
The model depends on a sustainable commercial business capable of funding continued delivery.
Ignoring distribution
A useful product still needs governments, schools, charities, or community organisations to reach and train users.
Is it for you?
Best for
It is best for profitable, closely held companies whose own products directly address a social need.
Not ideal for
It is not ideal for businesses without stable operating cash, founder control, or a product that can be safely deployed through capable partners.
From the transcript
“at the end of the day you spend dollars not percents.”
“because we make the very thing that people want, and I own 100% of the company, I don't have to make a profit.”
“So you can do it above the line before it even gets to profit.”
From the episode
Turn Trash Water into Drinking Water ft. Kurt Avery
Kurt Avery