At Black Innovation Alliance, we asked our members to share their thoughts on funding best practices. This is what we heard.
1) Make Multi-Year Grants
Achieving real impact requires dedicated focus and sustained support. When nonprofit leaders are forced to fundraise constantly, it detracts from more strategic aspects of the work. In an ideal world, foundations would consider their grantees as long-term strategic partners in helping them achieve good work in the world and “ride out” with them for three to five years. Standardizing multi-year grantmaking would be revolutionary in enabling the social sector to advance the good.
2) Make More Unrestricted Grants
Within a year’s time, Mackenzie Scott has become the patron saint of Black and Brown-led nonprofits everywhere. One of the many things she has gotten right is the decision to deploy large, unrestricted grants to amazing organizations. Making “unrestricted grants” is the one best practice that everyone in philanthropy knows about, but the industry struggles to implement systematically for some strange reason. But here’s what we all know – programs are not implemented out of the ether. They require strong organizations. Organizations with low capacity don’t get funding, but funding is not provided in ways that enable organizations to build capacity. It’s a losing game.
3) Practice Humility
There is a tendency for corporations and foundations to develop, prescribe or promote interventions that miss the mark. This comes out of a belief that those with money have all the answers. On the contrary, it’s often the people without access to the resources who have most to offer in the way of solutions and those with the resources who lack access to the intel necessary to craft truly impactful interventions. The best philanthropy is done in partnership with mutual respect for what partners bring to the table and in the spirit of trust, humility, and reciprocity.
4) Put us “onto the game”
Foundations and corporations cannot always cut a check. And that’s okay. There are other ways that funders can support the work of organizations and leaders they admire. If leaders of color are deficient in any way, it is in our access to resources and the knowledge and skills necessary to unlock those resources. Therefore, funders are encouraged to take the time to provide an “inside look” into how decisions are made so that leaders of color have the intel they need to be successful. Additionally, consider opening up your network and connect them to others who might be able to support you. Yes, we need money, but we also need friends on the inside who are willing to “put us onto the game.”
5) Focus on the Impact that Matters
Grants are often burdened with strict reporting protocols, which drain time and resources but don’t say much about actual impact. For this reason, funders must get clear on the effect they want to see and create streamlined reporting measures capable of conveying the difference being made through their investment.
6) Lower Barriers to Entry
Frequently, foundations use things like “by invitation only” and funding matches to filter prospective grantees. But these mechanisms only work to reinforce systemic inequities that bias those without resourceful networks. Foundations would do well to reevaluate their screening protocols to ensure they are not screening out those best suited to help them move the needle.
7) Fund Young and Innovative Non-Profits
Philanthropy’s deep bias toward funding older, more established organizations. Unfortunately, the newer, younger organizations often carry out the most energetic, forward-thinking, innovative, and impactful work. If the goal is to address racial disparities honestly, find ways to fund younger organizations too! They just might be our best way forward.
Do these resonate? What’s been your organization’s experience with these ideas, and how are you working to advance a more equitable charitable landscape?
