Opinion: To shift power effectively, we funders have to think long term

From boardrooms to rural program sites, funders are having important conversations about shifting more power and resources to local institutions. There are varied ways to make such shifts. One clear and essential entry point is to free ourselves from the constraints of short-term funding. A long-term model offers a promising pathway to transferring power and fostering enduring resilience. At a time when the world seems so uncertain, when funders and grantees require almost superhuman agility, it may seem counterintuitive to think long term. After all, funders don’t like to have our hands tied — it seems too risky. Yet by investing in locally driven NGOs run by visionary leaders who understand their communities and are committed to learning, taking the long view will yield dividends. Chief among these: Local organizations will be less subject to the whipping winds of philanthropic trends or undue stress about the next grant, and better able to plan and grow. The foundation that I lead, EMpower, for more than 15 years has been employing a trust-based, long-term, and flexible funding model, investing in local organizations that work with marginalized youth in emerging markets. This approach has been part of our DNA for the better part of two decades. By committing to fund NGOs over 10 years, broken into shorter increments, we, and they, can be more nimble than if tied to specific short-term outcomes. Importantly, this funding model offers the space for our partners to experiment and “fail forward,” which is really about encouragement to learn. They have the freedom to challenge assumptions — to evolve with the confidence that their funding will not evaporate. With this flexibility, an NGO may decide to experiment programmatically or expand geographically based on new insights about or from the people it works with. They can pivot without fear of veering off course of funder-focused deliverables. We saw the importance of this clearly during the height of COVID-19, when adaptability on the part of both funders and local organizations was paramount — in some cases, lifesaving. Our approach has also fostered more sustainable organizations. In two systematic evaluations we have conducted of former grantees, dozens said that by partnering with us for a minimum of 10 years, they were able to attract additional funding — often at a significant level — to scale or deepen their work. We have witnessed the results of long-term investing in local organizations and communities. In West Bengal, India, girls who completed secondary school after participating in a program run by our partner of over 10 years, Nishtha, have become change-makers in their communities. On a recent visit, the girls showed me a map they had drawn depicting all the households in a village and the progress made during our partnership: reduced child marriage, improved schooling and income, and installation of toilets. In a state where 42% of girls are married before the legal age of 18, Nishtha dramatically slowed child marriage in the villages where the program was active — gradually unraveling societal stereotypes so that educated girls were more valued. When our partnership with Nishtha began, nobody foresaw how these girls and their communities would transform over time. We did not anticipate the myriad ways the organization would learn and push boundaries over the decade of our support. How funders can move to a long-term approach We have gleaned critical insights during our own continuous learning journey that could help guide other funders in taking this approach. First, understand and work with your organization's risk tolerance and culture. EMpower started with four-year funding cycles before we went to six years, ultimately landing on 10 years when our board had become convinced of the benefits of a long-term approach. Lengthening the potential funding horizon, even if incrementally, benefits all grantees, and can be extended over time. Second, philanthropic funders can benchmark with, adopt, and adapt from other funders’ leading practices and experience. Following a path, even if not well-trodden, is less perilous than setting into the wilderness alone. We have found active sharing and setting targets with peers keeps our own practices sharp, and helps us advocate with our directors when we seek to make bolder moves. Third, as trust-based funders, acknowledge in advance that sometimes it won’t work out — and that is OK. Maybe a partnership is not the right fit, maybe missions no longer align or the funder doesn’t have the capacity to support. While it is not the norm, we have made the decision to go our separate ways once it became clear that a partner did not share a learning mindset or that our expectations were mismatched. This often leads to a greater understanding of who and what will fit. The right partners bring solutions, adaptiveness, and credibility. And we as funders bring the humility to say that we do not know all that is around the bend, but we trust our partners’ judgment and defer to their discretion in managing their budget and priorities, and assessing their progress. If we are truly committed to shifting power to local organizations, then moving toward long-term, flexible funding is critical. Despite being a public foundation tied to yearly fundraising goals and facing uncertainty about our own funding base, EMpower took this approach and it has paid off. We are confident that others — especially endowed foundations — can and should take this leap. There is no one right way to implement this approach, however, one thing is clear: Long-term, flexible, and trust-based funding will enrich your work and that of your partners for years to come.