Founder's syndrome, AI hallucinations and a flashback to the loo roll hoarding days

There’s no shortage of poignant articles, research pieces and blogs which highlight the many problems both within and around the third sector.

But it’s one thing to identify problems, and another to come up with informed actions that seek to rectify them. This selection of pieces, pulled together by Rachel Cross, aims to do just that.

Covering some of the hottest topics right now – stopping fundraisers from leaving their job, community-led co-design, funding scarcity and – of course – the uglies of AI – we hope this diverse yet enlightening range of reads will have you nodding and ‘hmming’ optimistically to yourself.
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So, grab a cuppa, and enjoy!

Passing on the essence: research findings on succession in small charities
Written by Laura Treener and published by Action Planning
No not-for-profit founder gets very far without passion. But, too often, the people responsible for an organisation’s early success can unintentionally become those responsible for its demise – by overcompensating on passion at the expense of planning for the long-haul. We’ve all heard of founder syndrome. This insightful article explores Sandra Hastings’ research on the ingredients of successful – and unsuccessful – leadership transitions from founders to second-generation leaders. Effective succession isn't simply about procedures – but it is deeply tied to passing on purpose, values and leadership identity.
 
It’s about more than just ‘doing good’: Why do fundraisers change jobs, and what will motivate them to stay?​
Written by Hannah Kowszun and published by Rogare
Now, from founders staying too long to fundraisers not staying long enough! Our sector has a problem with fundraiser retention: many fundraisers move on quickly, whether to another organisation, or another sector entirely. Hannah Kowszun’s Masters research discovered that variety and autonomy are the two key factors contributing to fundraisers’ intentions to stay in their jobs. In practice, this means having sufficient freedom and independence within their role, a voice in important decision-making, and the ability to execute and grow in wide variety of skills and tasks. Here, Hannah explains her research and provides some key insights for holding on to fundraising talent.

Hannah is also hosting a free online session on 18th September, which you can sign up to here.
 
AI hallucinations can’t be stopped — but these techniques can limit their damage
Written by Nicola Jones and published by Nature
Would it be 2025 if we didn’t mention something about AI?! Don’t glaze over though, because this article featured in Nature features a scientifically-tested leaderboard of ‘The Biggest Bullshitters’ – that is, the AI tools which are most and least likely to tell the truth, the whole truth and nothing but the truth. Even with model improvements, and better training with perfectly accurate data sets, large language models are still partial to the odd white lie – or worse. An interesting read on why AI models are still ‘hallucinating’ and giving false information, as well as helpful practical pointers for working with your chosen AI to improve its reliability.
 
Can communities redesign development? Inside the Aga Khan Foundation’s new toolkit for shifting power
Written by Ellen Agnew and published by Bond
Marginalised communities have long known what it means to do more with less. Amid fundraising challenges persist, shrinking aid budgets and growing systemic issues, the future of our sector depends on doing more with less – and on putting community participation firmly at the heart of design. Recognising this, the Accelerate Impact team at Aga Khan Foundation spent five years developing an accessible toolkit for putting community-centred design into practice in a way that is actionable, locally relevant and easy to customise. The toolkit has ethical co-design at its core and aims to give organisations the step-by-step tools to not only collect feedback and insights from their community, but design programmes which are actually driven by them.
 
Your Brain on ChatGPT: Accumulation of Cognitive Debt when Using an AI Assistant for Essay Writing Task
Academic Paper Review by Eleventh Hour Enthusiast and published on Medium
Okay, perhaps this piece isn’t so optimistic or solution-focused as the rest…but you may be keen to know that scientists now have some empirical evidence demonstrating that using AI is actually changing our brain structure. Researchers led by MIT Media Lab conducted the first comprehensive study examining what happens to human brains when people use AI writing assistants, like ChatGPT. They used advanced brain monitoring technology as participants wrote essays using either AI tools, search engines, or with no external help. Their findings reveal some concerning changes in brain connectivity patterns and cognitive performance…changes which persist even after AI use stops. Good to know.
 
Leaning Into Abundance: What If Philanthropy’s Potential Wasn’t Limited by Manufactured Scarcity?
Written by Zaineb Mohammed and published by Funders Collaborative Hub
And finally…do you remember the loo roll hoarding phenomenon in the early COVID-19 days?! Well, that was just one example of a “scarcity mindset”. A rifer and more chronic example is the driving force behind the majority of funding practices. But this mindset undermines everything we’re trying to achieve as a sector and in society. Here, Zaineb Mohammed shares how the Kataly Foundation have pushed back on this mindset and designed their grant-making from a place of abundance: spending more quickly, making larger grants, and funding the whole infrastructure around an issue, not just one organisation. As a result, their funding seeks to support a robust social movement ecosystem – and, ultimately, systems-level change for good.