Our North Star metric is lifetime earnings growth per dollar spent by the Foundation; our primary goal is to maximize impact as defined by this metric.

We have an ambitious initial impact target of driving over $100 in lifetime earnings gained per dollar spent. For $1 million invested, we expect to drive income increases by at least $100 million.

We take impact prediction and measurement seriously, as we believe it holds us accountable to achieving results and encourages ambitious proposals from our partners. We invest in understanding how our financing is helping us to reach our goals, both to improve our own efforts and to share what we’re learning with the broader field.

Clarifications

  1. “Dollars spent” refers to spending by the Foundation, including our overhead.
  2. If it weren’t for GitLab Foundation’s investment, the earnings growth wouldn’t be achieved.
  3. We focus on programs supporting individuals and families earning below a living wage in their local context, though we model and measure our impact based on all parties that might benefit from our investments.
  4. We believe that an impact made today is preferable to an impact made later, hence we apply a Net Present Value (NPV) discount rate to our North Star calculations.
  5. Our initial minimum investment threshold is in programs, organizations, or ideas that we believe can achieve at least $100 increase in lifetime earnings per dollar we spend.

Considerations

  1. One concern with using an efficiency metric like our North Star is the idea of "skimming the cream," or prioritizing the most easily addressable populations - who might be most easily addressable because they have other underlying advantages. For example, it may be true that upskilling and placing into jobs middle-class college graduates is more cost-efficient than assisting poor adults who have only completed high school. To address this, we will focus our investments towards individuals and families earning below a living wage.
    1. Helpful resources for calculating a living wage that we refer to include MIT’s Living Wage Calculator (US-specific) and the Global Living Wage Coalition.
  2. We recognize that as we progress in our work, we will likely uncover challenges in political dynamics, local laws, and cultural norms. These constraints may prevent us from addressing the neediest in some locations, though it shouldn't prevent us from attempting to have an impact.
  3. There are other things we hope to influence positively, but are not explicit goals of our Foundation. These include:
    1. Building a positive reputation for GitLab Foundation and GitLab, Inc (and certainly not having a negative impact on the reputation of these organizations)
    2. Driving increased team member engagement for GitLab, Inc
    3. Contributing to research and knowledge within our fields of operation (philanthropy, workforce development, etc.)