Six attributes of flexible funding
What exactly does flexible funding entail and how can funders adopt it effectively? Our working group tackled the issue and identified the six essential attributes that funders need to stay relevant, respond to dynamic needs, build trust, and foster innovation and sustainability. They also provided practical examples to show how each of these attributes can be successfully applied.
- Adaptability: Funders must adjust support based on evolving needs, including unrestricted funding.
A foundation in San Francisco, known for its traditional approach of funding after-school programs, faced challenges when the local school suffered budget cuts. However, the Foundation adapted by restructuring its funding to support teacher training in creative learning. This innovative approach saved the after-school programs and allowed teachers to deliver similar benefits within the day school, sparking a new wave of creativity and learning.
- Collaboration: Funders need to engage in participatory grant-making and involve stakeholders in decisions.
In Detroit, a health funder partnered with local community leaders to design a grant program addressing infant mortality. The collaboration identified transportation barriers as a critical issue, leading to funding for mobile health clinics in underserved areas that urgently needed attention.
- Transparency: Funders must clearly outline funding criteria, decision-making processes, and reporting requirements.
A Foundation was criticized for unclear grant application processes. In response, they developed a user-friendly online portal that outlined step-by-step instructions and eligibility criteria, as well as a timeline for the application process. They also established a grant review committee and published its members’ information, to show transparency in the decision-making process.
- Risk-taking: Funders can support innovation by taking calculated risks and providing upfront financial support.
An environmental funder in Kenya took a risk by providing a young non-profit with upfront funding for a pilot program on sustainable farming practices. The potential reward was improving environmental health through sustainable farming practices that could reduce soil erosion, support water conservation and protect biodiversity. The program proved successful, inspiring similar initiatives across East Africa, demonstrating that taking funding risks to support innovation have fruitful scalable impact.
- Strengthening competencies: Funders can support grantees by including training and knowledge-sharing components in every program.
An arts Foundation in New York City incorporated workshops into their program, offering grantees training on budgeting, marketing and fundraising. This customized training component equipped grantees with the skills and knowledge to effectively manage their projects and secure additional funding, contributing to the program’s overall success and sustainability.
- Trust-based partnership: Funders must collaborate with NGOs and CSOs to foster trust, transparency, and accountability.
An international development funder partnered with a local NGO in Syria to deliver essential humanitarian aid. The NGO’s knowledge allowed for the safe and efficient distribution of resources, while the funder provided financial and global advocacy support. Working in isolation or in uneven partnership dynamics would have not allowed critical aid to safely reach those in need.
