Is the Social Sector Stuck in a Cycle of Inefficiency?

Breaking the Cycle: Rethinking Social Impact with Ori Carmel

In this special 50th episode of Untapped Philanthropy, we dive into a critical conversation with Ori Carmel, co-founder of Sowen, a data-focused social impact consultancy. His work challenges the way the sector measures success, urging philanthropy to move beyond transactional thinking and embrace systems-driven, data-informed decision-making.

The Problem: We’re Measuring the Wrong Things

Ori’s research found that most nonprofit and philanthropic leaders spend nearly 80% of their time on reactive, tactical work, rather than strategic decision-making. While funders expect results on quarterly cycles, real social change doesn’t fit into these timelines.

The Core Challenge: Impact vs. Activity

“We measure how much money we distributed, how many convenings we created, and how many people we reached. We often have no idea what happens afterward.”

The sector has grown comfortable tracking outputs—grants given, people served—but struggles to measure true impact. This leads to a cycle of funding based on activity, rather than lasting change.

A Call for Systems Thinking

Ori argues that the lack of cross-sector collaboration is a major obstacle. “Philanthropy has to meet private sector, government, academia, and nonprofits in the middle.” But each sector operates under different currencies—profit, knowledge, legacy, or goodwill. Without a framework that rewards all of these, true collaboration remains limited.

The Way Forward

Instead of chasing quick fixes, Ori urges nonprofits and funders to invest in data maturity—better tools, governance, and long-term thinking. Improving data use by even 5% can exponentially increase operational efficiency and impact measurement.

Listen Now

This episode is a must-listen for anyone questioning the way philanthropy operates today. Tune in to hear Ori’s insights on building a smarter, more sustainable sector.

Download the transcript here.