The Ford Foundation’s BUILD initiative is over — but its influence isn't

For a decade, the Ford Foundation’s Building Institutions and Networks, or BUILD, was one of the biggest initiatives offering nonprofits flexible funding that could be put toward general operations. Last month, the foundation shared that it would be discontinuing BUILD — but embedding flexible support across the majority of its grantmaking. That change has some development professionals apprehensive. “I hope it does turn out for the best, but I also know the way that this sector typically trends,” said Monique Curry-Mims, founder and principal of social impact consultancy Civic Capital. “I would love to have this conversation in a couple of years.” The brainchild of former Ford Foundation President Darren Black, BUILD launched in 2015 as a means of offering social justice organizations, especially those led by or benefiting minority groups, the funds they need to strengthen their organizations over a five-year period. That could mean funding staff training, salaries, and overheads — the costs most organizations have but few donors are willing to fund, preferring project-specific items. BUILD began with an initial $1 billion, which was then replenished in 2021. Over the last decade, 350 nonprofits from 30 countries have received a portion of the collective $2 billion, the foundation told Devex in an email, as well as technical expertise to help strengthen nonprofits’ functionality. That money has been used by the likes of Action Aid Nigeria, the National Asian Pacific American Women's Forum, and Astraea Foundation. BUILD’s influence could echo past its own existence, though. While the majority of development funding tends to be project-based and time-bound, Ford’s model has influenced other foundations to take a similar trust-based approach over the years, said Rick Cohen, chief operating officer of the National Council of Nonprofits, which has received BUILD support from the Ford Foundation. Black told the Chronicle of Philanthropy its decision to fold BUILD was part of an effort to offer the incoming president — former dean of Yale Law School, Heather Gerken, who took up the role on Nov. 3 — a clean slate from which to lead. The foundation told Devex that Gerken has made it clear to staff that she is a strong supporter of BUILD and “looks forward to carrying forward its next iteration.” According to a Ford Foundation spokesperson, the second iteration of BUILD was designed with the goal of embedding a trend toward flexible, multiyear funding across the foundation and wider philanthropic sector. “Since its inception, we understood that BUILD would evolve — the foundation has always been committed to innovation and the adoption of new practices that make our sector better,” they shared. Over 80% of the Ford Foundation’s grants, which total $17.5 billion, are now in the form of flexible, multiyear funding, which includes general operating and core support, said the spokesperson. “It’s a reimagination of what they can do under their current circumstances,” said Eric Bergthold, a consultant who has held various positions with DAI, Pact, and USAID, describing how encroaching authoritarianism in the U.S. is impacting the social justice organizations — some of which focus on upholding democracy, the rule of law, and human rights — the Ford Foundation has typically supported. The foundation itself has become a target under Donald Trump’s presidency; it was accused by the administration of drumming up political violence. Gerken, who specializes in electoral law, told The New York Times that she intends to focus the foundation on upholding democracy. But some have concerns. Curry-Mims said if a nonprofit, for example, wanted to halt a program amid a change in leadership, that wouldn’t be in line with a donor’s expectations. “It’s baffling to me when foundations easily change what they’re doing and then expect nonprofits to not change,” she said. “It's not equitable.” Additionally, discontinuing something, said Curry-Mims, rather than explaining that the values are being incorporated into all their grant-making, creates ambiguity. “I would have liked to have seen that statement made with actual facts around what worked, what they're going forward with, and why they’re ending this program but ingraining all of that,” she shared. Such changes can also have reputational consequences for NGOs. Amber Hamilton, who has been a CEO of multiple U.S.-based nonprofits, likened the foundation to an “800lbs gorilla in the space” — and said there also has to be an acknowledgement that the philanthropy’s decisions to rethink their funding model “lands on a nonprofit’s balance sheet, only to be judged by other funders as risk and uncertainty.” “It’s not a question about whether they should evolve or better integrate these principles. They obviously should, and that's a good thing, but they have to hold the question, how can they evolve without transferring the cost of that transition onto institutions that don’t have million dollar cushions?” Hamilton added. “The bills are due now … and [nonprofits are] being left to do the work when philanthropy has the room to step back and continue to think about strategy,” she said. This is a luxury nonprofits themselves can’t afford, right now, she added. The Ford Foundation spokesperson confirmed to Devex that the remaining $130 million it had committed to BUILD through 2026 will still be distributed. There is a lack of clarity, though, on how former BUILD grantees and others engage with the Ford Foundation, said Camille Emefa Acey, founder of conscious closure consultancy The Wind Down. “Who do people call? What is the process for trying to access funds moving forward?” she asked. BUILD grantees were selected from a pool of existing grantees by the foundation’s program teams, rather than there being an application process. The Ford Foundation said it would “continue to solicit feedback from grantees and the sector about how we can best meet their needs.”