radical flexibility: strategic funding for the age of local activism … · 2020-02-19 · 4 /...

Radical Flexibility: Strategic Funding

for the Age of Local Activism

2 / Radical Flexibility: Strategic Funding for the Age of Local Activism

Contents

Executive Summary 4

Context 10

Definitions 10

Structure 11

Part I: Introduction, Problem Statement, and Research Process 12

Introduction 12

Theproblem 14

Threeconcerns 15

Howdidwegethere? 16

Whyisitimportanttosolvethechallengeoffundingpeacebuilding–andlocalpeacebuilders–now? 18

Whylocalpeacebuilders? 19

Whoisworkingonnewapproachestofundinglocalactorsandwhattoolsandstrategieshavetheydeveloped? 20

Part II: Seven Strategies of Highly Effective Donors (for Supporting Local Actors) 22

STRATEGYONE:Implementinnovativeandparticipatoryapproachestofunding,programdesign,andevaluation 23

STRATEGYTWO:Shiftfromtransactionaltorelationalpartnerships 25

STRATEGYTHREE:Focusonsystems-levelissues 26

STRATEGYFOUR:Prioritizelocalknowledgeandexpertise 27

STRATEGYFIVE:Shifttheburdentofunders 28

STRATEGYSIX:Providesupporttomovementsandcollectiveaction 29

STRATEGYSEVEN:Emphasizelonger-termandflexiblefunding 30

Implementingthesevenstrategies 33

Conclusions 34

Dynamicsofpower 35

Howdowemoveforward? 36

Radical Flexibility: Strategic Funding for the Age of Local Activism / 3

Part III: A New Approach to Funding Local Peacebuilders 38

Community-drivenphilanthropy 38

Developing“innovativefinance”toolsforcomplexsettings 39

Addressingcomplexity 40

Grant-givingbasedonradicalflexibilityandcollectiveaction 41

Summary 41

Conclusions 42

Part IV: Supporting Evidence – Challenges 43

CHALLENGEONE:Assumptionsandfallacies 43

CHALLENGETWO:Accountability 47

CHALLENGETHREE:Silos,systems,andcomplexity 48

CHALLENGEFOUR:Collaboration,movements,andcollectiveaction 51

CHALLENGEFIVE:Evaluation/impact 53

Conclusions 55

Annex: List of Research Participants/Interviewees 57

About the Author 58


Executive Summary

Executive Summary

Violent conflict is at a 30-year high. Building peace in any country requires local leadership, broad participation, and unwavering effort. Yet, the people, communities, and organizations best equipped to prevent violence and sustain peace are not receiving the recognition, respect, or resources they need from the international community. This is a situation that funders – including traditional government and private funders as well as new donors interested in social impact and solving big global problems - can and should change. Doing so offers the potential of ushering in a new era of more effective, locally led peacebuilding and conflict transformation. To achieve this, a radical reevaluation of the current system of donor funding is needed, as well as meaningful investment in new approaches supporting locally led efforts.

Peacebuildingisdedicatedtoresolvingconflictnon-violently,rebuildinglivesafterviolenceandensuringlocalcommunitieshavetheskillsandresourcestomakepeaceareality.Thismayberealizedthroughawiderangeofefforts,includingdirectlymediatinglocalconflicts,helpinggangmembersandchildsoldiersadapttocivilianlife,andempoweringwomeninallrealms,includingbusinessandpolitics.Despiteviolencepreventionandresilience-buildingbeingkeytoanyeffectiveintervention,currentfundingislargelydirectedatreactingto,ratherthanpreventing,conflict.Preventionortransformationincludesactivitiesthataddressthepotentialrootcausesofviolence,suchashumanrightsabuses,theinequitabledistributionoflandandotherresources,andthemarginalizationofcommunitiesfromdemocraticprocesses.

Localorganizationsonthefrontlinesofconflictareoftentheactorsbestequippedforpeacebuildingandconflicttransformation.Yet,theyaresystematicallyneglectedandmarginalizedfromtheinternationalpeaceandsecurityfundingecosystem.AstheFoundation Center’s–nowCandid–StateofGlobalGivingreportreveals,ofthe$4.1billionthatUS

foundationsgaveoverseasbetween2011and2015,just12%wentdirectlytolocalorganizationsbasedinthecountrywhereprogrammingoccurred.Peacebuildingingeneralisalreadyunderfinanced,withprivatedonorsspendinglessthan1%ofthealmost$26billioninglobalgivingonpeaceandsecuritywritlarge,includingpeacebuildingandconflictprevention.PathwaysforPeacestatesthattargetingresourcestowardjustfourcountriesathighriskofconflicteachyearcouldsave$34billioninforeignaidbudgets.Incomparison,spendingonresponsestoviolentconflictthroughpeacekeepingandhumanitariancrisisresponseoperationsin2016was$8.2billionand$22.1billion,respectively.

TheUnitedNations,alongwithmanyothers,hasnotedthatsuccessfulstrategiestoaddressviolenceandconflictshouldplacelocalactorsattheforefront.Furthermore,researchhasdemonstratedthatincomplexoperatingenvironments,supportingcivilsocietytocreatetheirownsolutionsisoftenthemostconstructivepathtowardsustainablesocialchange.A2019reportexaminingmorethan70externalevaluationsfoundthatlocalpeacebuildersdemonstratedsignificantimpactinpreventing,reducingorstoppingviolence;


Executive Summary

improvingrelationshipsamongcitizens(i.e.horizontalrelationships);andimprovingrelationshipsbetweencitizensandthosewhogovernthem(i.e.verticalrelationships).

Grantsarethebackboneofdonorsupporttocivilsocietyorganizations,yettheyareakintousinganalogtechnologytosupportsocialchangeinadigitalworld.Grantsareanoutdatedandineffectivetoolifthefundstheyprovidearenotusedwithgreatflexibility.Indeed,thisreportarguesthattheprevailingforeignassistanceparadigmhasledtothreeinterrelatedproblems:1)anantiquatedandcalcifiedglobalfundingsystem;2)inadequatefundingforlocalactors;and3)fundingthatispoorlystructuredforthepurposesofeffectiveactionandimpact.Inshort,thecurrentapproachconstitutesabadbusinessmodel.Lackofinvestmentinlocaleffortsunderminesthebillionsofdollarsspentonothertypesofintervention,creatingcompetitioninsteadofcollaborationandforcingsmallorganizationstowastevaluable

resourcesonconstantfundraisingbasedonimmediate-termsuccess.Throughappliedexperience,priorresearchondonorfinancing,25qualitativeinterviewsandathree-dayonlineconsultationwithlocalactorsfromallovertheworld,thisprojecthighlightsthefundingapproachesthatholdthemostpromiseinassistinglocalactorstopreventviolence.

Donorsutilizearangeofprogrammaticmodelstoeffectivelysupportlocalorganizations,fromparticipatorygrantmakingtoseedingcommunityfoundationstofundingthematicorgeographic‘clusters’oforganizationsandtheyalsorelyonseveralkeystrategies.Thesevenstrategiesproposedhereexplore:1)promotingmoreparticipatoryapproachestofunding;2)cultivatingauthenticpartnerships;3)encouragingfunderstosupportimprovementofsystemsratherthanprovisionofservices;4)lettinglocalpartnersleadwhiledonorsfacilitatetheirwork;5)shiftingadministrative


Executive Summary

burdenstofundersbyeliminatingopencallsforfunding,orbyallowinglocalorganizationstosubmitlimitedand/orexistingorganizationaldocumentsinsteadofcreatingnewdocumentsforeachdonor;6)providingsupporttomovementsandcollectiveaction,includingwithinthedonorcommunity;and7)adoptinglonger-termand“radicallyflexible”fundingapproaches,suchascreatingflexiblepotsofmoneythatcanbeallocatedrapidly,enablingpartnersonthegroundtochangeprogrammingplansascircumstanceschange.Someoftheseapproachesarerelativelynew(innovativefinancetools,suchasoutcomefundsandsocialimpactbonds),otherslessso(participatorygrantmaking,community-ledfinancing).Irrespectiveofage,noneofthemhavetakenholdasstandardpractice.Moreover,localorganizationsareforcedtowasteresourcesonconstantfundraisingthatisbasedonanabilitytodemonstrateimmediate-termsuccess.Donorsmustalsousesignificantresourcestomonitorgrantsusingtraditionalapproachesandareoftennotreasonablyabletokeepupwithvastpilesofquarterlyreports.Ineffect,weareusinganalogtechnologytosupportsocialchangeinadigitalworld.

Thisisanimportantsetofpractices;yet,it’snotenoughtoshiftthepowerdynamicintheinternationalfundingindustry.This report is a call to action, also outlining how a groundbreaking new fund is needed to address the lack of funding for local actors.Thisproposednewfundcombinesanumberofpromisingapproaches:community-ledfinancing;amplifyingtheprincipalsofdonorsthatpracticepartnershipandflexibilityingrantmaking;anddevelopinginnovativefinancetoolstosustainpeace.Indoingso,itarticulateswhichstrategiesarethemostviableforsupportinglocalorganizationspreventingviolence.Inpractice,thismeansgivinglocalorganizationsradicallyflexibletoolswhichwillenablelocalactorstobettergenerate,implement,andscaletheirownsolutions.

Thereisnowasignificantbodyofevidencedemonstratingthatcommunity-ledfinancing–whichincludessuchmethodsassupportingcommunityfoundations–works.Community-basedfinancingismoresustainablethantraditionalgrantfunding,asitallowscommunitiestoincreaseandtransferresources,orfindnewrevenuestreams.Localactorsanddonorswhoutilizewhattheauthorterms“radical flexibility”ingrantmaking,includingprovidingcoresupportwithlimitedadministrativeburdens,concludethattheygetahigherreturnoninvestment.Thisisbecauseorganizationsareneitherlockedintoprogramsthatarenotworkingnorrequiredtospendexcessivetimepreparingsupplications,fulfillingprojectrequirementsandraisingmoneyinsteadofimplementingtheirtoworktopreventviolenceandconflict.Innovativefinanceapproachespresentinterestingmodelsbecausetheyhavethepotentialtoattractnewsourcesoffundingnotboundupbytheoldconstraints.Theyalsoflipthecurrentforeignassistanceparadigm.Forexample,inoutcome-basedfundingdonorsandinvestorsareonlyconcernedaboutwhethertheprojectachievedanagreed-uponsetofobjectives.Incontrast,ratherthandependingonrigidmonitoringandevaluationplansandintermediaryoutputsandoutcomes,thismodelprovidesflexibilityforlocalactorstoshiftprogrammaticactivitiesastheoriginalplansevolveandtoreportonthemastheyunfold.

Insum,thisreportarguesforanapproachtosustainablepeacethatinvertsthecurrentpowerdynamicbetweenfundersandlocalrecipients.Thiswillensuregreateragencyandleadershipatthecommunitylevel,whileallowingdonorstoplayaneffectiveandsustainablesupportingrole.Aworldwithlessviolenceispossible.Thefundamentalquestionarising,then,ishowcantheinternationalcommunityandspecificallyfundershelp?Moreresourcesforlocalactorsisarequisiteinanabsolutesense;however,moneyisreallyaproxyforourvaluesandpriorities.Whatwereallyneedis


Executive Summary

amovementthatamplifieseffectivedonorassistancestrategiestolocalorganizations.Thismovementshouldensuregreateragencyandleadershipatthecommunitylevel,allowinglocalactorstomakedecisions

abouthowtoaddressthechallengestheyfaceintheirownenvironmentsanddonorstoplayamoreimpactfulandsustainablesupportingrole.Moneyisonepieceofthatpowerdynamic.

Recommendations for governments and multilateral donors

• Investingivingdonorsthecapabilitytobemoreeffectivepartnersby:

– Developinglong-term(ten-year)strategiesthatcanbeimplementedindonor-fundedone-,two-,andfive-yearcycles.

– Designingparticipatoryprocessesthatallowlocalstakeholderstocreatecallsforfunding,relatedprogramsandstrategiesfortheirevaluation.

– Providingflexiblefundingforcoresupport,includingemergencyfunds,thatcanbeusedtoassistorganizationsinbridginggapscreatedbyproject-restrictedfunds.

– Exploringgovernmentcapacityregardingthepromotionofparticipatorygrantmakingorprovidingseedfundingforcommunityfoundations,aswellasothereffortsassistingcommunitiesgeneratetheirownassets.

• Fundtheresearchandapplicationofcomplexadaptivesystemsinordertohelpinternational,national,andlocal-leveldecision-makersidentifyinterventionpointstopreventviolence.

• Supportnationalconflict-resolutionandviolence-preventioncapacities,whichmayrequirechoosinglong-termgoalsovershort-termgains,andadjustingexpectationsof“impact”accordingly.Thesecapacitiesinclude:collectiveactions,coalitions,andmovementsthataimtoempowertrulygrassrootsactors(whicharenotalwaysthesameas“civilsociety”);andlinkingcommunitiestonationalsystems.

• Generaterealisticapproachestoriskmanagementthatarebothacceptabletodonorsandbettersuitedtoconflict-affected,fragileandemergingmarketenvironments.

• Workcollectivelywithprivatefunderstoimprovecoordinationandunderstandingofhowdonorscanbestfunddifferentlevelsofchangeandtypesofactivities.Whileprivatephilanthropistsmaybeabletochoosemoreeffectivetoolstosupportgrassrootsactors,donorcoalitionsandpartnershipsareessentialtotacklingpeacebuildingandviolencepreventioninasystematicmanner.


Executive Summary

Recommendations for private funders

• Prioritizefundingmethodsthatmaybehardforpublicfunderstodevelop,suchas:

– Community-ledapproachesthatenablelocalorganizationstogeneratetheirownassets,therebyfreeingthemfromongoingcyclesofrestrictivegrantfunding.Additionally,includeevaluationdatademonstratingwhysuchapproachesareeffective.

– Innovativefinancemechanismsforpeacebuildingandlocalorganizations.Fundsshouldbedirectedtowardresearchanddevelopmentexaminingwhetherthetoolsofacapitalistsystemaresuitableforsocialchange,aswellashowinnovativefinancecanbebasedonconflict-sensitivityanalysis.

• Developaninvestmentmatrixshowingwhichfundingtoolsaremostappropriatetoaparticularoperatingenvironment.

• Explorehowfunderscanadoptsomeorallofthesevenstrategiespresentedinthisreportforeffectivelyfundinglocalactors,suchasparticipatoryapproachestograntmaking,minimizingapplicationandreportingbureaucracy,andprovidingonlycoresupport.

• Inthecaseoffundersalreadyactingontheaboverecommendations,bringtogetherotherorganizationstoshareexperiencesandpromoteashiftingofpowerfromgrant-giverstograntees.

• Fundpeopleandideas,notprojects.Indoingso,activelyadvocatefora“movementmindset”amongdonorsinordertocollectivelycombatglobaltrendsthatruncountertohumanrights,peacebuildingandhumanitarianwork.

• Dedicatetimeandfundstobreakingdownsilos,andtomakingclearthelinksbetweenpeacebuildingandhumanrights.

Recommendations for local organizations

• Takethepower—exerciseagencyandseekwaysofdisruptingthecurrentpowerdynamicbetweenfundersandlocalorganizations.

• Behonestwithfundersabouttheorganization’sneeds,therealitiesofimplementinganyrequiredassessmentframeworks,andtheaccomplishmentstheirsupportcan(andcannot)achieve.Learntosaynotofundersandnegotiateforbetterterms.

• Diversifyfunding—lookwherepossibleforcommunity-ledandotherfinancingsolutions,ratherthanrelyingonWesterndonor-fundedgrantsasafirststep.

• Seekout,learnfrom,andamplifytheapproachesoflocalorganizations—someofwhicharehighlightedinthisreport—thathavemanagedtoavoidrestrictivegrantfundingwhilesustainingtheirwork.

• Explorecollaborationswithotherlocalactorsaimedatdesigningandcatalyzingnewfundingapproaches—suchasoutcomefundstosupportanorganization’sobjectivesorprovidingseedfundingforacommunityfoundation—andbringtheseideastofunders.


Executive Summary

General Recommendations

Understanding and Measuring Impact

• Developandincorporateevaluationindicatorsthatcapture:

– Theimpactdonorshaveoncommunities.

– Whetheradonor’sfundinghasincreasedacommunity’scapacitytoarticulatetheirownneedsandachievetheirowngoals.

• Supportthedevelopmentofmetricsthatallowfortheevaluationofcommunity-ledwork,andthemeasurementofprogressrelatedtocollaborativecommunityaction.

• Measurenetwork-buildingandthedevelopmentofhorizontalandverticalsocialcapital,dignity,andtrust.

• Researchwhethertheefficacyofpeacebuildinganddevelopmentprojectschangeswhenfundedthroughlocallyledgrantmakingorsimilarstrategiesinvolvingcommunityempowerment.

Assumptions and Power

• Analyzetheassumptionsunderlyingadonor’sfinancing.Ask:

– Whodotheseresourcesempower?Whodotheydisempower?Howisthisassessed?

– Arethepeopledirectlyaffectedbyaparticularissueregardedasexpertsintermsofresolvingit?Ifagrassrootsissueisbeingaddressedbyanactoroutsidethelocalcommunity,whataretheassumptionsbehindthis?Whatistheroleofoutsideexpertsandexternalactors?

– Howmightexternalactorsexacerbatetheproblemorinhibitsuccess?

• Startafrankconversationaboutriskandcapacity.Ask:

– Whoisassumingtheriskintheinterventions?

– Whichcapacitiesrequirebolstering,andwhomdotheyserve?


Context

Context

Definitions

1 Metz,Z.,Nilaus-Tarp,K.andSobhani,N.,“ConflictSensitivityandPeacebuildingProgrammingGuide,”UNICEF,NewYork:NY,2016.

2 Forafullerdescriptionofrelateddefinitions,see:PeaceDirectandtheAllianceforPeacebuilding,“LocalPeacebuilding:WhatWorksAndWhy,”2019.

Inthisreport,“donorsupport”referstomoneyandotherassistancefromactorsexternaltoaparticularnationalcontext.Astheanalysisaddresseschallengesrelatedtotheentireecosystemoffunding,itincludes“foreignassistance”or“foreignaid”(usedinterchangeably),whichreferstofundingfromgovernmentsormultilateraldonors(theWorldBank,UN,andotherinternationalorregionalorganizations).Alsoreferredtoare“donorfunding,”whichisgenerallydefinedasprivatephilanthropicassistance,oftenprovidedbyfoundations,and“investments,”whicharefundsinvestedbythepublic,philanthropicorganizations,andprivatebusinesses,withtheaimofgeneratingprofit.

TheAllianceforPeacebuildingdefines“peacebuilding”astacklingtherootcausesofviolence,rebuildinglivesafterconflict,andensuringcommunitieshavetheappropriatetoolstoresolveconflictwithoutresortingtoviolence.Peacebuildingactivitiesutilizeabroadrangeofapproaches,fromtruthandreconciliationcommissionstoformerfighterstrainingothersinnon-violentpoliticalaction,tolocalgroupsmobilizingtostopviolencespreading.Peacebuildingcaninvolve“primary”or“secondary”outcomes.Intheformercase,thismeansthatfundingsupports“traditional”peacebuildingactivitiessuchasdialogue,reconciliation,truth-telling,andmemorialization.Inthelattercase,humanitarianreliefor

developmentactivitiesareconductedbasedonrigorousconflict-sensitivityassessmentsthatexamineexistingtensions(betweensocialclasses,identityorpoliticalgroups,etc.).Programmingapproachesthenseekataminimumnottoexacerbatesuchtensionsandinsomecasestobuildmorecohesiverelationshipsbetweengroups.Forexample,UNICEFhasdevelopedanapproachtoprogrammingthatessentiallymeanseveryintervention–fromwaterandsanitationtoreintegratingchildsoldiers–becomesameansofpromotingpeacebuildingandhumanrightsasaprimaryand/orsecondaryoutcome.1Whilehumanitarian,development,andpeacebuildingactivitiesallshareseveralcoreprinciples,suchasparticipationandinclusivity,peacebuilding’sfocusonrootcauses,relationships,andbottom-upeffortsisunique.

Thisreportisabout“local”organizations,movements,andnetworks.Localisahardconcepttodefineasitsmeaningmayshiftdependingonanindividual’sperspective(forexample,headquartersstaffinNewYorkorGenevamayconsidercountryofficeslocal,whereascountryofficesmayconsidersubnationalorregionalstafflocal).Ingeneral,localisusedheretodenoteorganizations,networks,orentities(whichmayormaynotbeformallyregistered)ledbyin-countrynationalsresponsiblefordeterminingprioritiesandstrategy.2


Context

StructureDifferentreaderswillusetheinformationpresentedhereindifferentways.PotentialfundersnewtothesedebatesandinterestedininnovativeapproachestobigglobalproblemsmaygainconsiderableinsightfromthecontextandanalysisofferedinPartI.Traditionalandprogressivefundersfamiliarwiththechallengesofdonorassistance

mayfindthegreatestvalueinlearningaboutnewand/oreffectivestrategies(PartII).Manymayalsobeinterestedinideasfornewfundingmechanisms(PartIII).Localorganizationswhoseconcernsandexperiencearetheheartofthiseffortmayfindtheentirediscussionuseful,evencathartic.

Tohelpfacilitatethesevariedinterests,thereportisdividedintothefollowingsections:

• PartI:Introduction,ProblemStatement,andResearchProcess

• PartII:SevenStrategiesofHighlyEffectiveDonors(ForSupportingLocalActors)

• PartIII:ANewApproachtoFundingLocalPeacebuilders

• PartIV:Supportingevidence–Challenges

Readersshouldfeelfreetochoosewhicheversectionsspeakmosttotheirinterests.ThestrategiesreferredtoinPartIIarethosethatemergedfromtheresearch.PartIII,whichoutlinesanewapproachtohowlocalpeacebuildersmightbefunded,detailsoriginalandpromisingmeansofsupportinglocalorganizationsworkinginconflictandviolence-affectedsettings.Whilenoteveryreadermaybeinterestedspecificallyininnovativewaysoffundingpeacebuilders,manyoftheconceptsexploreddohavewider

applicability.Finally,PartIVorganizestheproject’squalitativeevidencebytheme,furtherelucidatingthechallengespresentedbythecurrentdonorparadigm.Giventhereport’spriorityistocontributetosolutionsandeffectiveaction,adecisionwastakentopresentthesechallengesattheend.Evenso,thedirectquotesfrominterviewees–fundersandconsultationparticipants-includedinthissectionarepowerful,whiletheanalysisaimstoprovideallinterestedreaderswithusefulinsights.


Part I: Introduction, Problem Statement, and Research Process


Introduction

3 UCDP,“TheUCDP/PRIO(UppsalaConflictDataProgram/PeaceResearchInstituteOslo)ArmedConflictDataset2017,”2017.

Violentconflictisata30-yearhigh.3Inordertoaddressthis,theinternationalcommunitymustinvestmoreeffectivelyinakeyandgrosslyunderfundedleverofpeaceandstability–grassrootsorganizationsandindividualsworkingintheirowncommunities.TheauthorandPeaceDirecthaveworkedinpartnershiptoexplorethedynamicsof,obstaclesto,andopportunitiesforeffectivefundingoflocalactors.Indoingso,thisreportgrappleswiththequestionofhowtocreateameaningfulshiftinanindustrywherethesameproblemshavebeendiscussedfordecades.Werealizesuchatransformationwillrequirethecollectiveeffortofamultitudeofactorsovermanymoredecades.Ourhope,then,istocontributetothisprocessbyframingtheseproblemsinlightoftoday’ssociopoliticaldiscourses,andtooffertestedbutinnovativesolutionstothechallengesthatfrustratebothfundersandlocalactors.ThisreportexpandsonarecentarticleforAlliancemagazine,presentingthesubstance,detail,anddatabehindthisnewpracticalapproach.Grantsarethebackboneofdonorsupporttocivilsocietyorganizations;however,iftheyarenotusedwithgreatflexibility,theyquicklybecomeineffectivetools.Asthisreportwilldemonstrate,therearebettermeansofsupportingsocialchange.Someoftheseapproachesarerelativelynew(innovativefinancetools,suchasoutcomefundsandsocialimpactbonds),otherslessso(participatorygrantmaking,community-led

financing).Irrespectiveofage,noneofthemhavetakenholdasstandardpractice.

Moreover,localorganizationsareforcedtowasteresourcesonconstantfundraisingthatisbasedonanabilitytodemonstrateimmediate-termsuccess.Donorsmustalsousesignificantresourcestomonitorgrantsusingtraditionalapproachesandareoftennotreasonablyabletokeepupwithvastpilesofquarterlyreports.Ineffect,weareusinganalogtechnologytosupportsocialchangeinadigitalworld.

Thisreportisalsoacalltoaction–anewnormisneeded,onethatutilizeseffectivefundingmechanismsforlocalactors.Wearefacedwithanumberofpressingandinterrelatedissues,fromviolencetoclimatechangetomigration.Wewouldarguethatanyoneseriousabouttacklingthemshouldengagemeaningfullywiththisreport,exploringhowthelessonslearnedaboutsupporttolocaleffortsmightbeadaptedtotheorganizationalrealitiesofdifferentfunders.Ultimately,wemustaddressthemassivegapinfundingtolocalconflict-relatedactorsthatcurrentlyexists.Onemeansofdoingthiswouldbethroughseedingagroundbreakingnewfundthatexploresrangeofmechanismstosupportlocaleffortsinconflict-affectedsettings.Again,thisissomethinglaidoutinthisreport.



Thetwoquotesbelowfromgrantrecipientsillustratetheshortcomingsofthecurrentforeignassistanceparadigmandamoreeffectiveapproach.This,then,iswhatfundingfromtraditionalgrantslookslike:

“Because the United States has frozen its funds to the Northern Triangle and most other donors have stopped funding peacebuilding work, it’s very hard to get money for Guatemala specifically. We should be working together but [local NGOs] are all fighting for survival and the smaller groups are dependent on us to help them get grants. We are currently managing 27 projects outside of Guatemala. From this, we try to piece together enough overhead for our primary operations in Guatemala City. We managed to pay everyone last year but this year [2019] we are facing a shortfall and will have to start firing people in December. These are highly skilled human rights experts and very hard to replace. For 25 years it’s been like this; we don’t know from year to year if we can keep our staff.”

Incontrast,thisiswhatflexiblefundinglookslike:

“A private foundation was able to provide us with flexible funding that we…use[d] to create a reserve fund. We draw on this reserve fund whenever there is a lag between our need for funds and disbursements of grants from our donors (i.e. many times during each year). If we did not have this reserve fund, we would have to furlough staff and delay our activities until the funding arrived, and this of course would get us in trouble with our other donors who have given us a deadline for activities to be completed. The reserve fund has been a lifesaver for us!”

4 Thisisborneout,forinstance,in“TheHumanRightsDocumentationToolkit,”aresourcedesignedtoassistgrassrootsdocumentersandcivilsocietyorganizationsworkingacrossarangeofthematicissues(transitionaljustice,childrights,forcedmigration,landrights,women’srights).Publishedin2016,itutilizedsurveydatarelatedtotheself-reportedchallengesof55organizationsin42countries.Themostfrequentresponsesconcernedsecurityconcerns(ofstaff,information,interlocutors);lackofinfrastructureand/ormonetaryresources;andlackofhumanresources.

Astheabovedemonstrates,theprevailingforeignassistanceparadigmhasledtothreeinterrelatedproblems:

• Insufficientfundingforlocalactors.

• Fundingthatisinadequatelystructuredforeffectiveactionandimpact.

• Anantiquatedglobalfundingparadigmthatunderinvestsinlocalorganizations,akeyleverofsocialchange.

Simplyput,thecurrentapproachesconstituteabadbusinessmodel.DevaluinglocalactorsandperpetuatingaHunger Games-likeapproachtocivilsocietyfundingmeanslocalefforts–whichareanessentialdriverofsocialchange,resilience,stability,andconflictprevention–faceahugegapinsupport.Suchpracticesprovokecompetitionratherthancollaboration,underminingthebillionsofdollarsspentinmultilateral,bilateral,andprivatefunding.Moreover,localorganizationsareforcedtowasteresourcesonconstantfundraisingthatisbasedonanabilitytodemonstrateimmediate-termsuccess.Theseproblemscryoutforanewfundingapproach,particularlyinfragile,violenceandconflict-affectedcountries

Localactorsinalmosteverysector–fromlegalempowermenttohumanitarianefforts–arestarvedofresources.Whilethisreportrefersspecificallytopeacebuildingactorsandorganizations,theissuesdescribedaresystemicandapplicableto“localization”overall.Manyofthechallengesdescribedinthisreportareuniversaltocivilsociety,asarethedynamicsperpetuatingthem.4Thisspeakstotheneedforafundamentalparadigmshiftthatgoesfarbeyondthefinancingofpeacebuildersorjustice-sectoractors.



The problemThisresearchpresentedinthisreportunderscoresthealreadywell-documentedchallengespresentedbycurrentdonorandforeignassistancefundingpractices.Theseinclude:

• Fundingthatisfocusedonshort-termprojects.

• Fundingthatisproject-specificratherthanprovidingcoresupport.

• Lackofresponsivenessorflexibilitypreventingswiftadaptationtochangingcircumstances.

• Lackofdonorcapacitytomanagesmallergrants,resultinginfundingbeingfedthroughINGOs(internationalnon-governmentalorganizations)andaresultantdearthofdirectsupportforlocalactors.

• Administrativeburdensthataretoohighformanylocalactorstoovercomeandareinefficientfordonors.

• PrescriptivefundingprioritiesdrivenbyWesternpolicyanddonorimperatives.

• Aversiontorisk.

• Structuralbiasesandinaccurateassumptionsregardingthecapacityoflocalorganizations.

ManyoftheaboveissuesareframedinPartIVthroughthelensofassumptionsand

fallacies,highlightinghowtheyhaveevolvedintoubiquitousandenduringnarratives.Thereareseveralreasonswhytheyhavepersistedforsolongwithlittlechange,withthebeliefsystemunderlyingtheseviewpointsforemostamongthem.Thus,ratherthandiscusstheissuesthemselves–forwhichthereisalreadyampleevidence–thefocushereisonhowtheyhavebeenperpetuatedbythenarrativesthathavegrownuparoundthem.ItaddstoworkbySeverineAutesserreandothers,whichispremisedontheideathatnamingthesedynamicsandprovidingcounterexamplesisapotentialmeansofcultivatingchange.

Thisprojectalsorevealedanumberofchallengesnotcurrentlyincludedinthiswell-documentedinventory.Specifically:

• TheevolutionofWesterndonorconceptualizationsofaccountabilityanditseffectonlocalactors.

• Theconsequencesofthecurrentfocusonimpactandhowissuesofmeasurementareunderstood.

• Thedifficultiesofworkingwithincomplexsystems.

• Theriseofright-wingandconservativeideologieswhichrequiresnewstrategiesonthepartofdonors,includingafocusonmovementbuildingandcollectiveaction.

Combined,theseissuesperpetuatethethreeconcernslaidoutbelow.



Three concerns

5 Theother88%passedthroughintermediaries:INGOsorspentoperationallybygranteesbasedintheGlobalNorth;USpubliccharitiesre-grantingfundstolocalorganizations;organizationsindigenoustotheirgeographicregionbutworkingacrosscountries;multi-lateralorganizationsthatworkonagloballevel(e.g.theWorldHealthOrganization);andresearchinstitutionsconductingresearchindifferentcountrieswheretheyareheadquartered(TheGlobalGivingReport,p.11).

Insufficient funding

Community-level actors are facing a crisis in financing their work.Everycountryintheworldhasitsshareofdedicatedchangemakersengagedincourageousandinspiringeffortstopromotehumanrightsandendviolenceintheircommunities.Yet,astheFoundationCenter’s“StateofGlobalGiving”reportreveals,ofthe$4.1billionthatUSfoundationsgaveoverseasbetween2011and2015,just12%wentdirectlytolocalorganizationsbasedinthecountrywhereprogrammingoccurred.5Meanwhile,privatedonorsspendlessthan1%ofthealmost$26billioninannualglobalgivingonpeaceandsecuritywritlarge,includingpeacebuildingandprevention.Ofthosefunds,thevastmajoritygotogovernments,internationalorganizations(INGOs),orarefedthroughassessedcontributionstotheUN.Themajorityofresourcesfocusedonactiveconflictsettingsgotointernationalhumanitarianandemergencyresponse.Whilethislifesavingassistanceiscritical,itisoftennomorethanaBand-Aid.Humanitarianassistanceisnotdesignedtoaddresstherootcausesofconflict,suchasinequality,grievances,andhumanrightsabuses.Additionally,itdoesnotprovidelong-termsustainablesupporttolocalactorsworkinginplacestheinternationalcommunitychoosestoignoreorhaslostinterestin.Despitedecadesofliteratureandcountlessexamplesspeakingtothelimitedutilityofdonor-imposedsolutionstolocalchallenges,thebiasesandstructuralbarriersoftheinternationalcommunitymakesuchapproachesdifficulttodislodge.Therootsofconflictarecomplex,andgenerallyneitherawhollylocalnorwhollyinternationalresponsewillsucceed.Yet,localorganizationsandcommunitiesthatknow

besthowtoaddresslocalproblemsreceiveonlyafractionofdonorresources.

Poorly structured and thus ineffective funding

Funding for local organizations is structured in such a way as to prevent them making best use of it. Thechallengesassociatedwithforeignaidarewelldocumented.Fundingisoverwhelminglyprojectbased,shortterm,andinflexible.Donorfunds–particularlygovernmentandmultilateraldonors,butsometimesalsofoundations–comeattachedtoveryhighadministrativeburdensthatmanylocalactorscannotovercome.Furthermore,thecoreoperatingcostsofnon-profitorganizationsarechronicallyunderfunded,hinderingtheireffectiveness.Inaddition,mostdonorfundingisprescriptive,designedtofurtherexternalactors’agendas.Callsforfundingandprojectsarerarelydesignedinaparticipatorymannerwithnationalorcommunity-basedactors,meaningprogramsfrequentlyfailtoaddressthepriorities(andutilizethesolutions)thatthoselivinginrecipientcountriesseeasmostsalient.

Simultaneously,ratherthanfocusingonwhatisactuallyeffective,Westerndonors’primaryconcernisoftenoncomplianceandreporting/justifyingwhathasbeendonewithforeignfunds,asyndromefedbytheevaluationindustrialcomplex.Thisprevailingparadigmisreflectedinanattachmenttodonorcontrol,anaversitytorisk,conceptssuchas“capacitybuilding,”andtheimperativeto“scale”interventions.LackofdonorcapacitymeansfundingisfedthroughINGOsthatcanaddresstheseconcerns,whichinturnresultsinadearthofdirectsupportforlocalactors.Asonedonorimplored,“get[ting]morefundingtothesegroupsandplacesthatisgoodquality



andfocusedonthegrassrootslevel,withrespectforthegranteeperspectivesandprovidingcoresupportoverthelong-term,tryingtostreamlinereportingrequirementssothesegroupshaveachanceatdoingtheirrealwork–Ican’toverstatehowimportantthisis.”

An outdated paradigm

Theprevailingdonorapproachdoesnoteffectivelysupportlocalorganizations,initiatives,andnetworks.Thisparadigmisdecadesold,deeplyingrainedandbasedonafundamentalpowerimbalance.AsEdgarVallanueva,LeahZamore,andothershaveargued,itispredicatedonexpandingWesternwealth(andphilanthropy)throughglobaleconomicpoliciesandpracticesthatexploittheresourcesandlaboroflesspowerfulcommunities,oftenintheGlobalSouth.ThesecolonialapproacheshaveprivilegedWesternknowledgeanddecision-making,resultinginalotofmoneybeingspentonshort-term,donor-driveninterventions,whichhaveultimatelyfailedtosustainablyaddresspressingproblemssuchasviolence.

Inabroadersense,thereareperniciousdebatesaboutwhetherforeignaidcanactuallyhelpachieveitsstatedaimofbringingaboutajustandrights-respectingworldbuiltonanaxiomofstability,orwhetheritismerelyatoolforfurtheringdonors’agendas.Likely,thisnotadichotomy–foreignaidhasbothfurthereddonors’policygoalsandbeenresponsibleforhugemacrogainsintheeradicationofdisease,aswellasotherinterventionsthathavesavedlivesandpromotedahigherstandardofliving.However,meaningfullyaddressingsocialjustice,violence,andpersistentconflictrequiresadifferentapproach.Thewayinwhichdonortechnology,resources,andlearningareleveragedisgenerallynotthroughbottom-upsupporttolocalcontexts–thisisdespiteclearevidencethatlocallyledinterventionsbasedoncontextualnuancesarehighlyeffective.Theseissuesmeanassistanceisstructuredinwaysthatarenotwellalignedtolocalinitiatives,frustratingbothdonors–whoknowthisapproachisnotworking–andthoseonthereceivingendofaid.

How did we get here?

Large scale foreign aid is too unwieldy for community-led intervention

Bilateralandmultilateraldonorsprovidethevastmajorityofforeignassistance–$144billionin2017.Governmentdonorsarenotwellsituatedtoprovideresourcesatthecommunitylevelduetopolicy,administrative,security,humanresource,andmonitoringconstraints.Noraretheywellsituatedtoprovidethetypeoffinancing–coresupport,organizationaldevelopment,andflexibility–thatmostorganizationsworkinginchallengingoperatingenvironmentsneed.

Public and private donors are limited by their risk-tolerance, reach, and funding approach

Conflict-affectedcountriesdonothavethestableinstitutionsand/orinfrastructurethatprivateinvestorsinterestedinsocialimpactbondsorothersocialchangetoolsarelookingfor.Rather,thesecontextsareperceivedtoinvolveahighlevelofriskandsignificantpoliticalchallenges.Governments–andmorelikelyINGOimplementingpartners–areoftenlefttoassumeriskstheprivatesectorwillnot.This,however,leadstothequagmireaboveofgovernmentfundsbeingamismatchforlocalactors.



Thereisaparticularlysalientroleforprivatephilanthropyhere,whichcantakemorerisksandprovidemoreflexibleresources.

Themostintractableconflicts(e.g.Syria,Yemen)areoftenlinkedtogeopoliticaldynamicsthatcanseemunsolvable,makinganyformofinterventionappearhopeless.Findingappropriatelocalorganizationsinverycomplexplacesisahugechallenge–Westerndonorsandoutsidersfaceprohibitionsontheirmovements,especiallybeyondnationalcapitalsormajorcities,anddonothavethebenefitoftrustedlocalnetworksandknowledge.Thus,thereachofdonorsisusuallylimitedanddisconnectedfromcommunity-basedwork.Thismeansthestoriesoflocalpeopleandcommunitiesworkingtopreventviolenceoftenremainunknown,particularlyintheWest.Asonefundernoted,“Nooneknowsthereishopeontheground–thehopeonthegroundisoftennotconnectedtothepolicyprocess.”

Inadditiontothetendencytofindandfundcapital-basedorganizations,donorswillusuallyfocusonorganizationswithanestablishedstructureandlegalstatus.Justasinformalenterprises–forexample,womensellingtamalesinthemarket–compriseasignificantpartoftheeconomyinconflict-affectedcountries,localpeacebuildersareoftennotpartofaformalinstitution.Thismakesthembothlessvisibleandhardertofundforexternaldonors.Donororganizationsarenotmonolithic–whilefieldstaffmayknowthelocalscenewell,includingunregisteredgroups,theymaynothavetheflexibilitytofundthem.The“theoryofchange”aroundfundinglocalactorsarguesthatiftheworldisshownthatthesepeopleexist,andthattheyhavetheabilitytoconductimpactfulandsustainableworkevenindirecircumstances,funderswillrespondwithmoreflexibleandappropriatetools.

6 Coleman,P.etal.,“TheScienceofSustainingPeace:TenPreliminaryLessonsfromtheHumanPeaceProject,”NewYork:ColumbiaUniversity,unpublishedconferencepaper.

The peacebuilding field is failing to adequately communicate why its work is both essential and lifesaving

Therearesomeimportanteffortstowardaddressingthisshortfall,includingthenewlylaunched+PeaceCoalition.Partofpeacebuilding’schallengeisthatithasalwaysencompassedabroadrangeofpursuitscenteredaroundasetofprinciples–suchasstructuraltransformationandeliminatingrootcausesofviolence–ratherthanafinitesetofprogramsoractivities.Evenwhentheimpactoftheirworkhavebeenclear,peacebuildershaveshiedawayfromtaking“credit”foroutcomesinsettingswherecausalityandattributioncanbehardtoestablish.Conflict-andviolence-affectedsettingsareinherentlycomplex.Newstudies,suchastheUN-WorldBankreport,“PathwaysforPeace,”andresearchbytheAdvancedConsortiumonCooperation,Conflict,andComplexityatColumbiaUniversity’sEarthInstitute(AC4),havestartedproposingmoredynamicandnuancedunderstandingsofthefactorsdrivingconflictandfragility,includingpatternsofinequalityandexclusion.ResearchersatAC4arguethatinordertoadequatelydeterminethepolicyandprogrammaticinterventionpointsnecessarytosustainpeace,amuchbetterunderstandingofcomplexadaptivesystemsisrequired.6

Thepeacebuildingfieldneedstogetbetteratclearlycommunicatingitsworkandimpact.Additionally,fundingapproachesneedtoevolveawayfromthesilosnecessitatedbythedevelopmentindustrialcomplex.AC4’sresearchsuggeststhatsupportinglocalactorsisoneproven–andunder-resourced–path.



Why is it important to solve the challenge of funding peacebuilding – and local peacebuilders – now?Thepotentialofpeace-relatedphilanthropy–makingsupportforpeacebuildingacoreportfolioissue–inaddressingmajorworldchallengesisvast.Forexample,conflictisamajordriveroffoodcrisesglobally.In2018,124millionindividualsaroundtheworldfacedcrisis-levelfoodinsecurity,while815millionsufferedfromchronichunger.Ofthoseimpactedbyfoodinsecurity,60%liveinconflict-affectedareas,highlightingthecriticalrelationshipbetweenconflictandfoodscarcity.Peacebuilding,inaddressingconflict,offersanopportunitytopreventorreducetheseverityoffoodcrisesacrosstheglobe.Thesameistrueforotherformsofdeprivationlinkedtoconflict,suchasforcedmigration,gender-basedviolence,andchronicunderdevelopment.TheUNHighCommissionforRefugees’2018“GlobalTrendsReport”notesanall-timehighof70.8millionpeople–halfofthembelowtheageof18–arecurrentlyforciblydisplacedworldwideduetopersecution,conflict,violence,orhumanrightsviolations.In2018,37,000peoplewereforcedtofleetheirhomesevery day,withtheoverwhelmingmajorityofthemcomingfromplacesaffectedbyviolentconflict,suchasSyria,SouthSudan,Myanmar,andVenezuela.In2017,theJordaniangovernmentspentapproximately$1.7billionhosting650,000Syrianrefugees.AtarecentInter-AmericanDialogueevent,FelipeMuñoz,AdvisortotheGovernmentofColombiaontheColombian–VenezuelanBorder,notedthatthecostofhostingVenezuelanrefugeesstandsatapproximately$1.3billionperyear–about5%ofColombia’sGDP.Ofcourse,sucheconomicimpactsdon’ttakeintoaccountthepriceofabsorbingthesefamiliesandindividualsintocommunitiesalreadyfraughtwiththeirowntensionsandinsecurities–andtherisksto,forexample,Colombia’sfragilepeaceprocess.

Dealingwithconflictandfragilitythroughpreventionandresilience-building–rather

thanrelyingonreactivemeasures–iskeytoeffectiveintervention.Preventionconsistsofactivitiesaimedatreducingthepotentialdriversandrootcausesofviolence,suchashumanrightsabuses,inequitabledistributionoflandandotherresources,andmarginalizationofcommunitiesfromdemocraticprocesses.Forinstance,PathwaysforPeacenotesthattargetingresourcestowardpreventioninjustfourcountriesathighriskofconflictcouldsave$34billioninforeignaidbudgetsannually.Incomparison,spendingonresponsestoviolentconflictthroughpeacekeepingandhumanitariancrisisresponseoperationsin2016was$8.2billionand$22.1billion,respectively.Increasingamountsofdatamakethebusinesscaseforpeace–forexample,theInstituteforEconomicsandPeace,innotinga$1investmentinpeacebuildingprogramsleadstoa$16savingdownstream,arguesthat“Thetotalpeacedividendtheinternationalcommunitywouldreapifitincreasedpeacebuildingcommitmentsoverthenexttenyearsfrom2016is$2.94trillion.”

In2016,theUNadoptedSecurityCouncilResolution2282,oftenreferredtoasthe“sustainingpeace”resolutions.Theseresolutionsunderscorethatpeacebuildingisnotaninterventionlimitedtotheendofviolence,butrather,asmemberoftheAdvisoryGroupofExpertsontheReviewofthePeacebuildingArchitectureGertRosenthalstated,“…aprinciplethatshould‘flow’throughalltheUN’sengagements–before,duringorafterpotentialorrealviolenceconflicts.”Thisprecipitatedashifttowardtheprincipalof“sustainingpeace,”atermthatnowprevailsattheUN.Thesesameresolutionsassertthatwhiletheinternationalcommunityhasaroletoplayinsustainingpeace,itwillonlybetrulysustainablewhenbuiltandownedbylocalandnationalcommunities.



Why local peacebuilders?Thesuccessesoflocalorganizationsworkingintheircommunitiesaremyriad–theyhavenegotiatedceasefiresandhumanitarianaccessinSyria,facilitatedminorityTamilwomen’sparticipationinpoliticalprocessesinSriLanka,andtrainedyouthtonegotiatecommunitywaterconflictsinYemen.Theseindividuals,communities,andorganizationsoftenconsistofthosebestplacedtopreventlocalviolenceandresolveconflict,withresearchdemonstratingthat,particularlyinextremelycomplexoperatingenvironments,supportinglocalpeacebuildersandcivilsocietyisfrequentlythemostconstructivepath.

A2019reportexaminingmorethan70externalevaluationsfoundthatlocalpeacebuildersdemonstratedsignificantimpactin:preventing,reducing,orstoppingviolence;improvingrelationshipsbetweenandamongpeople(i.e.horizontalrelationships);andimprovingrelationshipsbetweenpeopleandthosegoverningthem(i.e.verticalrelationships).Intermsofsuccessfullypromotingchangesinknowledgeandattitudes,theseimpactsincludedpeacefulapproachestoaddressingviolence;increasedreadinesstoacceptex-fightersandrefugeesintocommunities;andbetterunderstandingandcollaborationbetweencitizensandauthorities.Theevaluationalsoevidencedsignificantchangesinbehavior,includingconflictingpartiesparticipatinginlocaldisputeresolutionandmediation;proactivestrategiesbyleaderstoimprovecohesion;andincreasedcitizenengagement–includingvoting–innon-violentdemocraticaction.Finally,tangiblestructuralchangesweredemonstrated,suchasareductioninviolenceincommunities;greaterseriousnessplacedongender-basedviolenceincourts;andmoreinclusivegovernanceapproachestoconflict-resolution.



Theresearchpresentedinthisreportalignswiththesefindings.Investinginlocalcapacitiesmitigatestherisksexternalactorsperceivetheyfacebecauselocalpeopleunderstandthecontext,includingwhichactorsaretrustworthyandwhoshouldbeavoided.Asoneglobalconsultationparticipantnoted,“Localsecuritychallengesinlocalcommunitiescanbestberesolvedbylocalpeople.Grassrootactorsarepartofthelocalcommunitiesandunderstandexactlywhyandhowpeopledowhattheydo.Theycandesignlocal-suitedsolutionstoit,andnotwhatthedonorthinks[are]solutions.Thatiswhygrantsseemnottobesolvinglocalproblems.”Fundersand

recipientsalikenotedthathavinglocal-levelrelationshipsmeansexternalactorsaremoreawareofthedynamicsandearlywarningsignsofconflict,discrimination,andinstability,withminorityandmarginalizedgroupsoftenamongthosehitfirstbylocaltensions.Finally,theseapproachestendtobelowcostandtechnicallyappropriate,tappingintoexistingleadershipstructuresandtraditions.

Thispotential–andtheaforementionedrealities–leadtotheconclusionthatnewwaysofoperatingoutsidetraditionalWesterngrant-fundedassistancemodelsareneeded.

Who is working on new approaches to funding local actors and what tools and strategies have they developed?

Anumberofimportanteffortsarecurrentlyunderway,exploringhowbestlocalactorsmightbesupported.Theseincludebutarenotlimitedto:researchconductedbytheNearNetwork,amovementofGlobalSouthcivilsocietyorganizationsdedicatedtopromotingmoreequityindevelopmentaid;arecentreportbyCIVICUSsummarizingextensiveinterviewswithfundersandcivilsocietyorganizationsabouthowtomoreeffectivelystructurefunds;workbyEdRekoshonrethinkingthe“humanrightsbusinessmodel;”andvariousindividualeffortsbyarangeofpublicandprivatedonors(withmanyofthelatterinterviewedforthisreport),includingthenewlylaunchedTrust-basedPhilanthropyProject.Theseeffortsalignwithmanyofthecoremessagestofundersabouthowtomaximizetheireffectivenessofferedinthisreport.

The“GrandBargain”isanagreementcommittingsomeofthelargestdonorsand

humanitarianorganizationstoprovidingadditionalsupportandfundingtoolstolocalandnationalhumanitarianactors.Furthermore,thePeaceandSecurityFundersGroup–anetworkofmorethan60donors–conductedsurveyresearchin2017thatindicatedasignificantnumberofitsmembershipdorecognizethevalueoffundinglocalorganizations.Despitethecurrent“buzz”around“local,”however,sucheffortstendtobesiloedbysector,aredisparate,andhavenotbeenscaledup.Theinternationalcommunityhasnowspentdecadesextollingthevirtuesof“localization”–collectively,though,therehasbeenlittleshiftinpractice.

Intermsofaddingtoknowledgeabouthowtosupportlocalactors,theresearchonwhichthisreportisbasedhadtwogoals:1)learnasmuchaspossibleaboutchallengesto,andstrategiesfor,effectivelyfundinggrassrootsactorsfromthosecurrentlydoing



it;and2)consultwithlocalactorstoassesshowtheyenvisionexternalsupportbeingstructuredinordertobestfacilitatetheirwork.PeaceDirectisoneoftheveryfewinternationalorganizationswhosemissionitistodirectlysupportlocalpeacebuilding.Thissupportincludesmobilizingmoreresources,promotinglocalpartnersinternationally,andadvocatingforashiftinpolicyandfunding.Severalmembersoftheirstaffwereformallyinterviewedforthisproject,whileinformalconversationshelpedshapetheintellectualdevelopmentitsarguments.Otherwise,however,thisresearchdidnothaveaparticularfocusoninterviewingfunderswhosecoremission

istosupportpeacebuilding(asdonorsspecificallyfocusedonpeacebuildingarefewandfarbetween).Theimplicitquestionarisingfromthiswashowtoaddressthisgapinfunding,andwhetheritmightbestbedonethroughanewfundingmechanism.Thesnowballsampleincluded25funders(seeAnnex)workingonavarietyofissues,includingclimatechange,HIV/AIDS,education,childprotection,humanrights,blockchainandsocialfinance.The“demand”sideofdonorfundswerealsoconsultedabouttheirneedsthroughathree-dayonlineconsultationwithcivilsociety,localactors,andindividualsworkingonfundingissuesacrosseverycontinent.


Part II: Seven Strategies of Highly Effective Donors (for Supporting Local Actors)


The approaches below emerged from the interviews as best practices. While they may be known to a certain subset of funders, these principles are far from the norm and therefore bear repeating:



STRATEGY ONE: Implement innovative and participatory approaches to funding, program design, and evaluation

Severalfundersinthisprojecthavefocusedonparticipatoryphilanthropyapproaches.Thissetofprinciplesattemptstoshiftthebalanceofpowerbyaskingquestionssuchas:Whodecideshowfundingresourcesareallocated?Whoparticipates?Andwhodecideswhogetstobeatthetableinsuchdiscussions?

Itwasnotedthatthiscanbeaveryimportantapproachindividedandconflict-affectedsocieties,withonefunderexplaining,“[Thesemethodologies]involvegettingarangeofinputrelatedtodifferentpolitical/identitygroupsorwhatevermayhavefueledtheconflict–andalsoincludedifferentactorstraditionallyoutsidethepeacebuildingfield,likeeconomicactors.

Thechallengeisthisistimeconsuming.Itrequiresverygoodfacilitationandunderstandingoflocalpoliticsandcontext,thoughthisisapotentialcontributionofpeacebuildingbecausewehaveafewdecadesofwell-trainedfacilitators.”

Supporting collaboration

Onefunderencouragespartnerstoworktogetherbysupportingclusters(connectedbynetworks,project-specificissues,orgeographicarea).This,thefunderfeels,ismoreimpactfulanddecreasestransactionalcosts.Anotherfunderreportedtheydon’thaveonesingleapproach:“Howthislooksandwhattypesofresourcesyouprovidevaryfromplacetoplaceandneedtohavesomestrategy.InaplacelikeNigeria,whichishuge,youcan’tgive20grantsallovertheplaceandexpecttolearnsomesortoflargerlessonaboutimpact.”

Innovative finance

Ingeneral,innovativefinance–anapproachdiscussedingreaterdetailinPartIII–referstoanytooloutsideoftraditionalgrants,andcanincludeimpactinvesting(generatingbothfinancialandsocialreturn);blendedfinance(theuseofpublicfundstomobilizeprivateinvestmentleveragedtowardsocialoutcomes);bondsandoutcome-basedfinancing;causemarketingandcorporatepartnerships;andvariousformsofsocialentrepreneurship.Onefundernotedthatthesemechanismsareoften“structuredrightnowinthewaythatbanksdoit.Practicingimpactinvestinginawaythatserveslocalorganizationsandpartnerswouldlookdifferent.”Forexample,ThousandCurrentsstartedtheBuenVivirFund–animpactinvestingfundtheyspentone-and-a-halfyearssettingupthroughworkwithpartnersacrosstheworld:“Wewentthroughalong,thoughtfulplanningprocesswithnumerousstakeholdersandcameupwithanewmechanismthatreflectsthevaluesthatlocalorganizationsthoughtwereimportant(e.g.someoftheindicatorsarehappinessorjoyfulness)…Itwasaheavylift,justadoptingtheconceptsandthenwedidalotofworkwithateamofUS-basedlawyersandtriedtofindlawyersinthedifferentcountriesinwhichtheloansoperatetofigureouthowtocreateLLCsinotherplaces.”

Locally owned philanthropy

Thereareanincreasingnumberoflocallyledphilanthropiceffortsandrelatedmovements,includingtheEuropeanCommunityFoundationInitiativeandtheGlobalFundforCommunityFoundations



(GFCF).Thelatteraimstosupportpeople-buildingcapacityandsocialcapitalincommunitiesintheGlobalSouth.AstheExecutiveDirectordescribedit,thisisamovementabout“…funderswithinthecommunityratherthantothecommunity.”Shefurthernoted,“Whichgrantmakertalksaboutsocialnetworksorcapital?Thingsthatarehardtomeasure.Thecommunityfoundationmovementrelatesto[buildingthesecapacitiesand]trulyempoweringthemostmarginalized.Ifthewomeninacommunityallgave$1,maybethataddsupto$50–it’snotbigbucks,buthowdoyoumeasure/valuethatifyouunderstanditasanattitudinalchange,aninvestmentinyourcommunityandthefutureofyourchildren.Webelieve‘Nooneistoopoortogiveortoorichtoreceive.’”

WhenTewa(theNepalWomen’sFund)–oneoftheGlobalFundforCommunityFoundation’spartners–makesgrants,theyalsoaskpartnersiftheywanttogivebacktothefund.Inthisway,thepowerparadigmisflattened:“Bygivingback,youarenotjustarecipientbutalsoadonor.”Effectively,thequestiontheyareaskingis:Howdoesitchangethestoryoffundingifyoustarttochangethetermsoftheconversation?GFCF’sExecutiveDirectorwentontonote:“TaketheDalitCommunityFoundation–themereexistenceofthisorganization,thisisasubversiveact.Wehavebeentoldweareacommunityand[thistypeofphilanthropic

7 See:Hodgson,J.&Pond,A.,HowCommunityPhilanthropyShiftsPower,TheFoundationCenter,NY,NY,2018.

communityorganizing]letsusembracethatasasourceofpowerratherthanasthemostmarginalizedinoursociety.”7

Regardlessofapproach,intervieweesstressedtheneedtotestoutdifferentwaysofgettingfundstothegrassrootslevel.Forexample,PeaceDirect’sLocalActionFund–anatrocitypreventionprograminMyanmarandNigeria–aimstoreachlocal-levelinitiativesthroughacombinationofmicrograntstocommunity-levelgrassrootsinitiativesandsmallgrantstocivilsocietyorganizations.Thefundaimstobeasflexibleandresponsiveaspossible,takingcuesfromcommunitiesandcivilsocietygroupsaboutwhatworks,andconsideringapplicationsonanongoing,rollingbasis.Meanwhile,SparkMicrograntsfunds“hyperlocalorganizations,”whicharemorelikecollectives.Theyareoftennotformalorganizationsattheoutsetofthecommunitygrantprocessbutbecomeformalizedovertime.SparkMicrograntsnotedthattheirAmerican-ledpartnershaveconsiderablymoreaccesstofunding:“Organizationsthatareactuallyfromtheselocalcommunitieshaveareallyhardtimeaccessingfunds,andthefundingthatisavailableiswithinaprojectandprescriptivemodel.”Itisworthimagining,then,whattheimpactofcreatingasignificantpooloffundsavailabletohyperlocalgroupswouldbe,particularlyifthegroupswereaccountabletoasetofestablishedstandardstheyhelpedco-create?



STRATEGY TWO: Shift from transactional to relational partnerships

Asonefundernoted,“Thenatureofdonor–granteerelationshipsisusuallytransactional–moneyfromonesideandextractiveknowledgefromtheother.Thesearenotthetypeoflong-termpartnershipsthatareconducivetothekindsofimpactstheinternationalcommunityissupposedlyseeking.”

Certainly,authenticandeffectivedonor–granteepartnershipsexist.Acrosstheboard,asshownbythisandotherresearchconductedbyRockefellerPhilanthropyAdvisorsandtheSocialChangeInitiative,donorsandrecipientsnotedtheirpartnershipsweremosteffectivewhentheirconveningauthoritywasfocusedoncreating“spaces”andnetworks,withtrustingrelationshipsbuiltupthroughworkingwithpartnerstogetthemtheresourcestheyneed.Suchresourcescouldtaketheformofoperationalorprogramsupport,technicalassistance,accesstointernationalfora,orsolidarityindifficultandoftenheartbreakingwork.Asonefundernoted,“Thedifferencebetweenbeing[abiginternationaldonor]andawomen’sfundinSerbiaisthatthewomen’sfundhastolivewithitsdecisions.Thereneedstobealotofsupportforpeopleatthislevel.Thisisnotalwaysforthcoming–peoplearesofocusedonprogramdeliverythattheyaren’tthinkingaboutpartnershipandhowtosupportthoseontheground.”Asurveyof125localpeacebuildersfromallregionsoftheworld,reiteratedbyglobalconsultationparticipations,indicatedtheirtopmostrequestforsupportfromtheinternationalcommunitywasgreaterrecognitionoftheimportanceandimpactoflocallyledefforts.Fundingcameinrankedasthefourthpriority.

Donorsandgranteesoverwhelminglyemphasizedtheimportanceoffacilitative

relationships.Asonefunderputit:“Partofaneffectivefunders’jobisreallygettingtoknow[partners]sowecanhelpidentifyhowtosupporttheirworkinaconstructiveandcomprehensiveway.”Thiscaninvolveprovidingtechnicalexpertisewhen partners request it (forinstanceregardingfinancialmanagementorsecuritytraining;ortrainingonnewlawsandpolicies–suchassanctionsormoney-laundering–thatincreasefiscalorduediligenceprocesses).Relationalsupportcanalsotaketheformoffacilitatingnational,regional,andinternationalconnectionsandlearningexchanges:“Organizationsoftenwanttomeetwithgrassrootsorganizations,networks,andmovementsintheUS,lesssowithgovernments.Theyareinterestedinpeer-to-peerlearning,whataretheydoingaroundtheirissues?Howaretheyworkingtowardssocialjustice?Aretherecommonapproachesortools?”Otherstrategiesincludeamplifyinglocalorganizations’campaignsandstories,andhelpingtofindotherfunders.Somedonorsspendalotoftimeinconveningsandconferencespaces,gettingtoknowotherdonors,inorderthattheyarewellpositionedtomakethesetypesofconnections.Thekeyelementinalltheseapproachesistrust.Asonefundernoted,“Thebottomlineiswetrustourpartners.Wetrusttheirwisdom,theirjudgement,andtheirassessmentofwhattheircommunityneeds.”

Onefunderspokeoftheimportanceofongoing,probingconversationswhenattemptingtounderstandandaddresstherealneedsofpartners:“Alotoftimeswhenweaskwhattypesofsupporttheyneed,theysaytrainingorcapacitybuilding–theymaycertainlyneedthatinsomeways,butwealsofindthat’saneasylanguagethat’sbeenimposedbytheinternationalcommunity–easytofund,easytomonitor,easytocount.



Whenweworkthroughitwiththem,weoftenenduptalkingaboutwhattheyaredoingafterthecapacitybuilding–whataretheythendoingwiththecapacitatedindividuals!Thisismorestrategicvision,buildingcampaignsandleadership–othertypesofpartnershipsupportthatwecanoffer.”

Additionalstrategiestosupportpartners(whichoftenemergedfromtheirrequests)included:

• Keepingintouchbeyondthelifecycleofaprojectandlettingpartnersknowaboutnewopportunities.

• Nominatingorganizationsforprestigiousprizes,suchastheGoldmanEnvironmentalPrize.

• Accompanyingpartnersonglobalspeakingtours.

• Facilitatingconnectionswithpolicymakersandotherinfluencers:“Funderscanbequiteusefulbecausetheycanopendoors,governmentsaremorewillingtomeetwithfundersthanlocalgroups,theycanoftenhavesignificantconveningauthority.”

• Influencingphilanthropybyconveningdiscussions,bringingpartnerstospeakatkeyforaabouteffectivefundingstrategies,developingtrainingandeducationalopportunitiesforphilanthropists,andwritingopinionpiecesandop-eds:“Wecannotjustbea‘typicaldonor’givingawaymoney.BeingbasedintheUScomeswithaccesstothephilanthropysectorandsopartoftheresponsibilityoffundersistochangehowdonorsoperate.Despitesomanydecadesofdiscussions,togiveresourcesinalessburdensomeway.”

STRATEGY THREE: Focus on systems-level issues

Fromhealthcaretohumanrights,fundersnotedthatprogrammingtendstofocusinontheprovisionofservicesratherthanconsideringhowtheseprogramslinktowidersystems.Asonefundercommented,“Easytofund,easytomeasure,”towhichmightalsobeadded,profitabletoevaluate.Yet,oneproductiveroletheinternationalcommunitycanplayismaintainingafocusonthe“forestthroughthetrees”–thatis,holdingabiggersystemsperspectivewhichimplementersonthegroundcanfindveryhardtoaddressgiventheirfocusontheimmediateneedsoftheircommunities.Itwassuggestedthatinternationalfoundationscouldassistinthisbyprovidingmore

strategicanalysisonhowtoaffectsystems,asopposedtothecurrent,excessivefocusonservicedelivery.

Forexample,aglobalfoundationwithcountryofficesnotedthatthelatterarechallengingHQinaproductivewaytothinkmoreabouthow,atthecountrylevel,theirprogrammingincludesanexplicit,strategicfocusontheintegrationbetweenservicedeliveryandsystemschange.Thisisparticularlysalientwhenconsideringthepreventionofviolenceandpromotionofresilience,whichrequiresmorefocusonunderlyingsystemschange,inconcertwithdirectprogrammingstrategies.



STRATEGY FOUR: Prioritize local knowledge and expertise

Theinternationalcommunity’srefrainaboutneedingto“understandlocalcontexts”isubiquitous.Regardlessofthesincerityorotherwiseofthisassertion,adeepershiftisrequired,onethatacknowledgesthattherealexpertsarecountrynationals.Externalactorswillalwaysbelearners,andmayneverfullyunderstandthecomplexitiesofaparticularsetting.Thoughthereareplentyofexternalactorsdedicatedtomakingtheworkoftheirorganizationsreflectthisprinciple,asasystemthisisnotreflectedinthepoliciesandproceduresofdonorassistance.

Today’srisk-averseandsecurity-constrainedenvironmentmakesgettingoutofcapitalcitiesdifficultforexternaldonors.Thisisparticularlythecaseforgovernments,whichfacegreaterrestrictions.Theresultisthattherelationshipsandinformationuponwhichdecisionsaremadeareoftenconstrained.Onefunderunderscoredthatfindingtrulylocalinitiativesisahugejob,requiringconsiderabletimeandresources:

“[Theinternationalcommunity]hasn’tdoneagoodjoboffindingandinvestingin[local]people–weneedtothinkabouthowweevenfindpeopletofund,whatarethebiasesinthisprocess.Thisiswhereweneednetworksoflocalexpertstohelpusunderstandthecontext.Asanorganization,wespendalotoftimefindingthem,alotoftimetalkingtothemandalotoftimetryingtounderstandtheecosystemintheircontextandmaptheactors.Whoarethe“briefcaseNGOs?”Thoseorganizationsthatessentiallysyphonoff-insteadofaddingto-localresources.Wethenhelptheseorganizationscharttheirpath–wedon’tdeterminewhattheydo.”

Privatefundersemphasizedmultiplestrategies,includinghiringprogramofficers

fromtheregionsinquestion,aswellasfrequenttraveltoplaceswherefundingisongoing.

RecentevaluationresearchsoundsanoteofcautionregardingthetrendtowardNorthernNGO“localization”intheGlobalSouth,suggestingthatwhileitholdsnumerousbenefitsforinternationalNGOs,ithasnotresultedinthesystemicinvestmentindomesticprioritiesandcultivationofnationalconstituenciesforhumanrightsthatleadtolong-termchange.Indeed,intermsofunderstandinglocalcontexts,connectinglocalactorstosystems,andbuildingtherelationshipsdonorsclaimarenecessaryformeaningfulsupport,manyfundersstatedthereisnosubstitutefornationalcountrydirectorsandstaffinleadershiprolesfromtherecipientregion.Asoneintervieweecommented:

It’shardtogetreliableinfointheseplaces.It’sreallyimportanttoknowwhatisgoingonbehindthescenes,withsocialmovements,thegovernment,relationshipsbetweenorganizationsandcommunities…manyorganizationsareveryadeptatwritingproposalsandreports,havemediaaccessandyoucanthinkit’shavinganimpact,butwhenyougotothefieldyoulearnabouttheprogramminginadifferentway…thereisnosubstitutefordeepknowledgeofnetworks,trustingrelationships,andreallyunderstandingwhattheworkis.Inaddition,thereisabiasinwhatpartnersoftentellfunders–thetotallyhonestassessmentofwhatishelpful,whatanytimeboundamountoffundingislikelytoaccomplish,israre.Beingveryclosetothegroundisveryimportant–wehavedevelopedarelationshipoftrustwiththesepartnersoveryears.ThishelpsusinthecurrentlandscapewithdraconianNGOlawsandotherrepressivedevelopments.



Someprivatefundersmaybalkatcreatingmoreofficesandhiringmorestaff,therebyincreasingoverheadsandreducingtheamountofgrantmoneyavailabletolocalorganizations–suchchoicesabout

organizationalstructurehavelegitimateprosandcons.Generally,however,moreconsiderationneedstobegiventomeaningfullyunderstandingandsupportingdomesticpriorities.

STRATEGY FIVE: Shift the burden to funders

Anothersuccessfulsetofpracticesinvolvesshiftingadministrativeandduediligenceburdensontodonors’shoulders,therebyfreeinguppartnerstodotheirprogrammaticandotherwork.Somefundersaskpotentialpartnerstosubmitexistingorganizationaldocuments,suchasannualworkplansandbudgets,ratherthanrequiringnewprojectproposalsorburdensomereportingrequirements.Onefundersimplyasksonceayear,“Whatdoyouwanttosharewithus?”

Manyofthesefundersdonotputout“opencalls”forfunding,inwhichtheyessentiallyadvertisetheyareseekingpartnersworkingonaspecificsetofissues.Suchcallsusuallyrequirefairlyextensiveproposalpackages–arecentprocessforagovernmentdonorstipulated14mandatoryattachmentsinadditiontotherequisiteten-pageprojectnarrative.Notonlyaretheseprocesseslaborintensive,theymeanofferingintellectualpropertythatsomefundersthenincorporateintotheirapproach.Thisworkisrarelycompensated–ofcourse,partofthepointofcompetitionisthatthereisnoguaranteedpayoff.Fundersthatdonotputoutopencallshavebeencritiquedforputtinginplaceasystemthatleadstoanarrowsetofpartnerstheyalreadyknow.However,thesefundershaverespondedbypointingoutthatthesupposed“levelplayingfield”createdbyopencallsisafarceduetothewaysinwhichdonorsprioritizeapplicants.Fundersnotedthatfindingpartnersanddevelopingrelationshipsisaveryresource-intensive

process,withoneintervieweeexplaining,“Weneverfundedanythingbasedonpaperapplicationsbutratherin-personmeetingswheneverpossiblewiththegroupintheircontext.Weputalotofresourcesintohavinganinformedlocalcircleofinfluenceandalocalstructurethatmakesdecisionsbasedontriangulationofinformationandtrustandaccountabilitybornefromoperatinginthatparticularcontext–inthiswaywetrytoavoidgatekeepers.”Anotherfunderdescribedtheprocessasfollows:

Wedon’thaveopencalls.Wedecideonseveralpriorityareasincollaborationwithasetoflocalpartnersandlookfororganizationsthatapproachtheseissuesholistically.Wedoalotofgroundworkupfrontandgeneratealistofpotentialgranteesandthenmeetwiththemin-country–wedon’tmakepartnersfilloutlongapplications,wedotheworkofvettingpotentialpartners.Wetheninvitethemtobetherecipientofacatalystgrantwhereweworktogetherforayear–asmallgrantthat,likeallofourgrants,involvescomprehensive,flexiblesupport.Afterthat,wedecidetogetherifitmakessensetocontinuetherelationship.

ThisapproachofreducingpaperworkofquestionableutilityexplicitlychallengestheassumptionsandfallaciesdiscussedinPartIV.Asonefunderobserved,“Wedon’tbelievetheconceptthatmoreextensivereportingequalsbetterduediligenceandaccountability.Webelieve



inleveraginglocalnetworkstododuediligenceandweassumetheburdenofmonitoringthisthroughrelationshipsandregularconversations.Accountabilityisinherentbecausethesepeople,networks,andorganizationshavedeeprelationshipsintheircommunities.”Similarly,anotherintervieweeexplained,“Asafunder,even

ifyouaregivingawaysmallamountsofmoney,youarevalidatingcertainactorsandthathasanimportantsymbolism–ifyouvalidatethewronggroup,youareintrouble[asanexternalactor].Thisismitigatedbyspendingthetimetodevelopdeeprelationshipsandcontextualknowledge,notbypaperwork.”

STRATEGY SIX: Provide support to movements and collective action

Someintervieweestalkedabouttheneedforfunderstotakeastrategicapproachtothewaydemocracyitselfisbeingunderminedinmanycountries,andperhapsglobally.Tothisend,onefunderspecificallyinvestsinathree-prongedapproach:1)supportingsocialmovementsandactorsthatcounterbalancethistrend;

2)engagingwithlocalandnationalauthoritiestoensurethatthegovernmentworksintheinterestsofitscitizens;

and3)pushingforaccountabilityandjusticeincountriesthathavesufferedmassviolence.

Thisfunderisputtingparticulareffortintodevelopingtoolstoassessthestrengthofmovements–examiningtheirleadership,strategies,anddevelopment.Thesetoolsexploresuchquestionsaswhetheramovementhasastrongbasebutstruggles

toputastrategytogether.Thisinformationhelpsthemthinkaboutwhere,asafunder,theirsupportmightbestbeemployedgoingforward.

SupportingsocialmovementsandbuildingnetworksofNGOsmayrequiredifferentapproaches;indeed,anotherfunderdiscussedtheirexplicitstrategiesregardingfundingthelatter.Theseinvolvedprovidingresourcesforconveningnetworksand,asmentionedabove,evaluatingtheirdensityandthereforestrength.Therespondentnoted,“Thereisarealitythatbuildingtheserelationships–especiallyacrossgeographies–involvesconcertedwork;thesenetworksneedtobenurturedovertimeandsometimesthatisacapacityissueforfunders.However,thisisakeyfunctionoffunders–toprioritizesupporttoconveningsorotherforathatenablepeopletogettogetherandshareandbuildrelationships.”



STRATEGY SEVEN: Emphasize longer-term and flexible funding

Theneedforlong-termflexiblefundingisadrumbeatfamiliartomostfundersandfundingpartners.Programflexibilityandfinancialduediligence–bothimportantissues,especiallyinareasofconflictwhereassociatedlevelsofcorruptionareoftenhigh–areintertwinedtosomedegree,andwouldbenefitfromexplicitstrategiescenteredonflexibility.Below,ratherthanreiteratingthisclearneed,thediscussionaimstoshedlightonwhycurrentpracticesarehardtoshift,andhowinsomecasesfundershavemanagedtoachievechange.Aninfluentialgroupoffunders–includingNoVo,ThousandCurrents,andHumanityUnited–havecommittedtochangingshort-term,inflexiblepracticesandtheirapproachneedstobeexpanded.Thelikelystartingpointforthiswouldbegatheringevidenceonwhylong-termandflexiblesupportaremoreeffectiveapproaches.

Longer time horizons

Asonefundernoted,“Ifthemissionisaboutsocialtransformation,organizationsneedsupportthatcanspanarangeoftimehorizonsandbeusedflexibly.”Therearefundersthatprovidesupportwithalonger-termtimehorizon–theNoVoFoundation,forinstance,hascommittedtosevenyearsofcoresupport.ThousandCurrentsstartedwiththreeyearsofsupport,thenwhentheyrealizedthiswasinsufficient,agreedtoprovideanotherthreeyears.Theythenextendedfundingtotenyearsbeforeeliminatingtimeboundgrantsaltogether:“…thenwesaid,‘Whyareweattachingtime-framestothis?Ittakeshowlongittakes.’”

Manyfundersnotedthatdespitedecadesofdiscussionabouthowsuchpoliciesarethewayforward,notalothasactuallychanged.

Whenaskedwhythisisthecase,answersincluded:“inertiafromtheseprocesses;”“thedevelopmentindustrialcomplexthatfocusesonhardskills,projects,andmeasurableoutcomeswhichneedtobeaccomplishedincertaintime-frames;”andthefactthateconomic,social,culturalandpoliticalrightsissuesareoftensubjecttothesameexpectationsappliedtoagriculturaldevelopmentandwaterandsanitationissues,despitethevastlydifferentprocessesandtimehorizonsinvolved.

“Radical flexibility” – with just enough structure

Addressingthequestionofwhatisrequiredforchange,fundersspokeofanoft-citedobstacle–bureaucracywithinfoundationsandtheneedtogetapprovalfromboardsandseniorleadershipfor“new”approaches.Perceptionsofcontrolandtheideathatnon-timeboundapproachesinvolveagreaterlevelofriskarediscussedmoreextensivelyinPartIV.Whenaskedhowtheyseekoutboardmembersandleadershipcapableofunderstandingflexiblewaysofworking,oneintervieweeresponded,“Nobodyistherebyaccident–tofindthesefunders,thesedonorsandboardmembershadtobeverythoughtful.Ifyouweretryingtodothisthesameoldwayyouwouldwriteachecktoabigwell-knownINGO.”Again,issuesaroundpower,control,andbeingagoodfitcomeup.Donorswishingtoknowinadvanceexactlywheretheirmoneyisgoingandwhatoutputstheywillfundarenotgoodmatchesforthistypeofwork.Thefundersthatlocalactorsconsideredmosteffectiveoperatewith“radicalflexibility”–though,similartocorefunding,adynamicoftalktrumpingactionexists.Onefundernoted:“Therehasbeenyearsofdiscussionaroundthisandyetthe



realityisthatthereisn’tthatmuchfundingforhumanrightsdefendersorthoseworkinginconflictthatisflexible–thefundingthatisavailableislargelyveryrestrictive.”

Fundersnotedthatflexibilityrequiresabalance:“Weneedtobeflexiblebutatthesametimeprovideenoughreassurancethatthereisamethodologyandastrategy.”Anotherintervieweepointedoutthereisalwaysaninterplaybetweenstructuredversusflexiblefundingapproaches:“Ofcourse,nothingiscompletelywithoutstructureorrulesandprocessesandtheideathatthisisappropriatedoesadisservicetoflexiblefunding.Wehavefoundthatourfundingismosteffectiveandthisbalanceisbestwhenitis20–30%topdownand60–70%bottomup.”Theintervieweecharacterizedthisasrespondingtoorganizationalprocessesandprocedureswhileatthesametimebeingresponsivetoneedsontheground.

Thisrepresentsanimportantmessagetofundersthatwishtoadopttheseapproachesbutconsideritimpossible(orunwise)tosuddenlystopaskingformoretraditionaldonorrequirementssuchasquarterlyreporting.Itisnotthatimpactfuldonorshavenorules,processes,orwaysofaccountingforresources–rather,thecoreoftheirworkisnotcenteredonrigidprocedures.Instead,theyareconstantlystrivingtoeliminateburdensomereportingoraccountingrequirements,aswellasapproachestocompliancethatarepredicatedonmistrust.Crucially,themissionandleadershipofthefundingorganizationsproactivelysupportprogramofficersinestablishinglong-termtrustingrelationshipswithgrantees.Asaresult,officerscanbetterunderstandtheworkontheground,buildtheircapacitiesformonitoringandreporting,andcreatesystemsthatimprovetheefficacyoftheirpartners’work.

Furthermore,givingchoicestolocalorganizationsemergedasanimportant

principle.Asonefunderobserved,“Beinginarelationshipwithafunderisachoice–therearesomeorganizationsthatdojustwantthegrantorwantproject-specificfundingbecausethat’seasierforthemtomanageforwhateverreason–andtheyshouldbegiventhatoption,thefundershouldworkwiththemtofindthebestmodality,whichmaymeanfacilitatingconnectionswithfunderswhomeettheirneedsbetter.”

Rapid response funding

Onefunderobservedthatgroupsworkinginconflict-andcrisis-affectedcountrieshavemoreneedofflexiblefunding,andsothisisanexplicitpartoftheirapproach:“Theirenvironmentschangerapidly,thesecurityrisksareacuteandwearebetterabletorespondtoviolencethroughflexibleresources.Whenworkingthroughconflictorviolence,youoftengetaveryshort-termnicheforbeingabletotakeactionandifyoucan’tmobilize,thatopportunitypassesyouby.”Whilethisparticularfunderonlyprovidescoresupporttograntees,therearevariouswaysofaddressingtheneedforrapid,flexiblefunding.Forexample,anumberofdonorshaveemergencyfundingpotsorpartnershipswithorganizationssuchasUrgentActionFundforWomen,whoseexplicitmissionistoprovideemergencyresponsesupport.

Itwasalsonotedthatanorganizationsetuptoproviderapidresponsefundingwasaverydifferentbeasttoonesetuptoprovidelong-termfunding,withtheperceptionbeingthatitishardforsmalldonorstodobothwell.Urgentfunding–short-termsupportoftenprovideddirectlytofrontlineindividualsandactivists–waslikenedtoan“emergencyroom”forwhenthingsfallapart.However,long-termsustainablepartnershipswithgrassroots-levelorganizationsareimportant,asneedscanchangeovertime.Asonefunderobserved,“Evenmoneythatwasthemostflexibleinitiallyisnotnecessarilyflexiblewhenacrisisarises–thatmoneyis



thenalreadyallottedforsalariesorofficerent,itsoftenassignedtosomething.”Long-termrelationshipsmeanfunderscanhelplocalorganizationsidentifyotherpotsofemergencyfundswhensecurityissuesorotherunexpectedcircumstancesarise.

Embracing flexibility within funding organizations

Theneedforflexibilityextendstofundersasorganizations.Arunningthemeamongintervieweeswasthatfundersshouldnotbeattachedtoanysinglemodelorwayofdoingthings,butshouldinsteadbelearningorganizations:“Whateverthepartnerteachesusorguidesustodo,wewillmodifytorespondandsupportthem.”Operationallyspeaking,thestructure,processes,andprogrammaticapproachesofthesefundingorganizationshaveevolvedthroughexperimentation.Theirsharedethosincludedanenthusiasmforseedingnewideasandanappetitefortakingrisks,bothofwhichrequiredthesupportofleadership,governancebodies,andfunders.Manystartedunderaregimeoffiscalsponsorshipandthenevolvedintoindependentorganizations.Theseperiodsofevolutionwerenecessary,withtheincreasedhumanresourcessupporttheyinitiallyenjoyedoftenhelpful.Thefirstfewyearsofthesemechanismswereoftenunderstoodasfluidandexploratory,thefocusbeingonputtingsystemsinplaceandtestingdifferentapproaches.Evenso,

intervieweesemphasizedtheneedforaplanoverseeingtheevolutionofoversightstructuresandprocesses.Thefundshadoftenstartedsmall,operatingintwoorthreecountries,andthenaddedcapacitiessuchasflexiblepotsofproject-specificoremergencyfunds.TheFundforGlobalHumanRights,forexample,startedinthreecountrieswhereithadgoodrelationshipsandnetworks,beforeeventuallyexpandingto15countries(asof2018)andadding“connectivetissue,”suchasseparatepotsoffundingforcross-cuttinginitiativesoremergencyresponses.

Funderssuccessfulinadoptingthesepoliciesnotedthatleadershipandstaffspendalotoftimeeducatingboardmembersandotherleaders,oftentakingthemtoseeprojectsandprovidingexperientialeducationopportunities.Thus,onepossiblemeansofgeneratingsupportforsuchprojectsandapproachesmaybetoengageinmorepeer-to-peerexchangesandsitevisitswithinphilanthropy,particularlyatseniorgovernancelevels.Indoingso,keydecision-makerscanlearnfromtheirpeersabouthowtheyhavebroughtaboutpolicyandproceduralchange.Itisclearthatthemostpromisingfundingtoolsarethosethathavebuilt-inflexibilityandadaptability.Inaddition,itisthedonorsthatvalueexperimentation–someofwhichmightworkandsomeofwhichmightnot–thatcanmosteffectivelysupportlocalorganizationsoverthelongterm.



Implementing the seven strategiesThestrategiesoutlinedaboveareprovenapproachesthatbothfundersandlocalactorssayareeffective.Insubsequentconversationswithotherfundersaboutthisresearch,reactionshavefallenbroadlyintothefollowingtwocategories:

1) “Sure, I agree 100%. If only we could all be X progressive funder – please feel free to tell my board of directors that we don’t need proposals or time limits on grants.”Theneedforleadershipthatunderstandstheseissuesandiswillingtotakeassociatedrisksdidemergeasakeyobstacle(addressedinPartIV).However,theintentionofthisdiscussionisnottosuggestthateverydonorcouldornecessarilyshouldadoptalltheseapproaches(orthatfundinglocalactorsistheonlysolutiontoanynumberofsocialproblems).Rather,thehopeisthatinpresentingthedataandarangeofstrategies,individualdonorscanfindsomethingthatspeakstotheiruniqueorganizationalcircumstances.Theymaybeabletousethisasammunitiontoargueformoreeffectivepoliciesinsupportinglocalgroups,oralternativelydrawfromitanideatheycanadoptastheyimplementnewcallsforfunding.Evendiscretechanges,suchasdoingawaywithcallsforproposalsorquarterlyreports,havethepotentialtoshiftthenorm.Everyorganizationandinstitutionoperateswithconstraintsandadvantages–moreexplicitdiscussionofwhattheseareandincreasedcollaborationbetweenfunderstoaddressthemwouldbeapositivestep.

2) “Yes! Wonderful – and we already do all/most of these things.”Fundersthatarealreadyutilizingsomeorallofthesestrategiescouldamplifytheirworkthroughthefollowingapproaches:

• Bringdonorsthatdonotutilizetheseapproachestothetableanddiscusswhyitisimperativetheirexistingpracticeschangeand,moreimportantly,how to do

it.Therearelike-mindedpeopleineverydonorinstitution–bothgovernmentandprivate-tryingtomovetheneedleontheseissues,wholikelyfeeloverwhelmedathavingtocreatesuchchangealone.Byengagingothersandsharingdataontheeffectivenessofthesefundingstrategies,influentialfundersthathavealreadyadoptedsuchapproachescansupportindividualsworkinginothersystems–whetherinbigdonorbureaucraciesorinsmallerfundersthatutilizetraditionalapproaches.Doingsopubliclyisalsoimportantinmarketingnewapproachesandpressuringotherfunderstofollowsuit.ArecentChronicle of PhilanthropyarticledescribedresearchundertakenbyfivebigfoundationstoaddresstheissueofchronicunderfundingofNGOoverheads.Intakingupasystemicissuethattosomemaynotseempressinggivenotherurgentglobalneeds,thesefundershavesentoutapowerfulpublicsignal.Asimilarapproachcouldhelpbringaboutaseismicshiftinhowlocalactorsarefunded.

• Explorenon-grantmethods–suchasseedingcommunityfoundations–ofhelpinglocalorganizationsgeneratetheirownassets,belessdependentonrestrictivedonormoney,andensurethesustainableprosperityoftheircommunitiesthroughtransferringwealth.

• Startaconversationamongcivilsocietyorganizationsthathavemanagedtosettheirowntermswithdonors.SomeexamplesincludeTwaweza,anorganizationbasedinDaresSalaamthatworksonengagingcitizensinarangeofissuesrelatedtoholdingtheirgovernmenttoaccount.Asonefundernotedwithadmiration,“…fortheirfirsttenyearstheyneveracceptedfundingthatwasn’tgeneraloperatingsupportandtheyrefusedtoofferanyreportingbeyondtheirpublic



annualreportandauditedfinancials.Eachyeartheyinvitedfunderstojoinoneboardmeetingduringwhichtheiraccountantandauditorsmadeapresentationaboutthefindingsofthelatestaudit.Otherwise,theyessentiallytoldtheirfunderstoleavethemalone.”AnotherexampleinvolvesThailand’shumanrightsandenvironmentalmovements,allofwhicharelargelyself-funded.Memberscontributetoacommunityfundwhichpaysfororganizers,activities,andevents.Elsewhere,therearenumerousexamplesoforganizationsthat

donotacceptfundingoncertainissuesfrom,forexample,theUSgovernment(e.g.EarthRightsInternationalforMyanmar,ortheCenterforCiviliansinConflict),astheyviewthisashypocritical,orrecognizethatgiventheyareadvocatingfortheUSgovernmenttochangeitspoliciesthereexistsapotentialconflictofinterest.Whilethesestoriesareareality,theyarenotparticularlywellknown.Amplifyingthemisanimportantmeansofempoweringcivilsocietytostartsettingthetermsoftheirownconversationwithfunders.

Conclusions

Theessentialargumentpresentedhereisthatwhiletherearemanyindividualsandfundersdoinggreatwork,insufficientattentionisbeingpaidtothesystemasawhole.Whilethisisunderstandablegiventheoverwhelmingnatureofthedonorfundingindustry,itisnotreasonenoughtoshyawayfromaddressingissuesthatrequireurgentattention.

AuthorssuchasRobReich,DavidCallahan,andAnandGiridharadasallwriteaboutsystems–particularly,capitalismanddemocracy.Theyaddresshowrichphilanthropistsareabletoconvertprivateassetsintopublicpower,andhowtheriseofastaggeringlywealthyclassmaybeathreattodemocracy.Thisinfluenceislargelyunaccountableand,initsapproachtosolvingsocialproblems,reliesonthetoolsofhyper-capitalismthatgeneratedmassiveinequalityandwidespreadsocialillsinthefirstplace.WhiletheiranalysesfocusprimarilyontheUS,widerlessonscanbedrawn.Callahanhasarguedthat,fordecades,theconservativerightintheUShassupportedasetofideologicallyalignedorganizationswithunrestrictedfunding.Hecontendsthatwearenowseeingtheresultsofthisinthepromotionoflawyers,judges,andacademics

whowererecipientsofthissupporttoseniordecision-makingrolesinkeyinstitutions.Thesuccessofthisapproachrepresentsanurgentlessonforphilanthropistswithmoreprogressivesocialagendastoconsiderthesemodelswhichfocusonpeopleandideasratherthandiscreet(service-deliveryoriented)programs.Aparadigmshiftthatinvokesnewoperationalandideologicalapproachestolocalpartnersisneedednowmorethanever.

Donorsandorganizationsallovertheworldaremakingvalianteffortstoacknowledgesystemicissuesoftenrelatedtopowerandfindmoreresponsiblewaysofworking.However,thesesystemicproblemsrundeep.Foreignassistanceisa$150billionayearindustry–itisgoingtotakeconsiderablymorethanonefoundationtochangethewaytheindustryisoperationalized.Thefollowingquestionmightthereforebeposedtothosedonorswhoagreethatchangeisimperative:Whatdothinkitwouldtaketocatalyzeadonormovement?

Inordertoaffectchangeandcatalyzeamovement,itisnecessarytoexamineinmoredetailthedynamicsofpower.



Dynamics of powerCurrentdynamicsofdonorfundingarebasedonneocolonialpowersystemswhichprioritizeWesternknowledgeandleaveveryfewresourcesavailableforlocalcommunities.Asonefunderobserved,“Thisisnotaknowledgeproblem.It’snotthatnoonehasthoughtofthesechallengesandweneedtoinventanentirelynewmodel–peoplelikeAnneFirthMurry[founderoftheGlobalFundforWomenandauthorofParadigm Found]havebeenreflectingonanewparadigmfordonorsfordecades.Theissueisthatthisapproachrequiresgivinguppowerandcontrol.”

Astheresearchforthisprojecthasmadeclear,addressingtheessentialproblemsofpeacebuildingandhowitisfundedisnotmerelyaboutcreatingbureaucraticprocessesthatmoreexpeditiouslydirectmoneytodifferentrecipients(suchasfrontlineandgrassrootsactors).Rather,itisaboutafundamentalshiftinprevailingnorms,questioningassumptionsandthinkingabout“power,”“local,”“impact,”and“effectiveness”areunderstood.

Thecurrentsystemismaintainedbyallthepartiesinvolved.Thisincludestraditionaldonors(suchasgovernmentsandprivatephilanthropists),whichoftenprovidefundinginwaysthataremanifestlyineffectiveanddetrimentaltooutcomes.ItalsoincludesmanyintermediariesandINGOsthatarenowarequisitelayerinthesystem,absorbingrisk,performingduediligence,writingquarterlyreports,andingeneralrespondingtotheparameterssetupbytheindustry.Inevitably,themostsuccessfulatperformingtheselattertasksarelargeINGOs,whichcanhiregrant-writingstaffandlawyerstoensuretheydon’t“messup”byfundingaparticipantwhomayhavethesamenameasaterroristora“lowcapacity”organizationthatcannotorganizeitsreceipts.

Fundingrecipientsalsoplaytheirrole.Clearly,theiroptionsarelimited:1)optout;

2)playthegame;or3)lookforsupportersthatdon’toperateintheusualway.Indeed,somegrassrootsorganizationsaresowornoutbythewhimsofdonorsthattheynolongercareabouttheirdirectivesorpronouncements:“Fundreconciliation;fundwaterrights–dowhateveryouwant,wearegoingtokeepdoingourwork.”Inrecognitionofthisreality,afundernoted,“Thechallengeoftryingtocontortintothissystemisdeeplywearingforpartners–theyalmostdevelopStockholmSyndromewhereyoubecomebeholdentoyourcaptors.Peopledon’tevenhavethelanguageorideasanymoretothinkoutsidethismassiveindustry.”Anothersaid,“Aresultofthe‘non-profitindustrialcomplex’isthatorganizationshavetobrandthemselvesandtheyhavetokeepraisingmoneyoverandoveragain–theyarecaughtinthisendlesscycleanditmakesithardtostepback.Everyonehasbeenacculturated–thesystemwearsdownpeople’screativity.”

Anothereffectofthisdeeplyingrainedparadigmisthatpartners(correctly)perceivetheirlivelihoodstobeatstakeandarethereforeforcedintocomplicitywiththisdynamic.Thistakestheformoftellingdonorswhattheywanttohear,whichmeansnotbeinghonestabouttheneedforcoresupportorthedetrimentaleffectsofprojectizedfunds.Italsomeanstheydonothavethespace,vision,orvoicetosuggestalternativestoafailingsystem.

Manydonorsexpressedfrustrationatthis,notingthatwhiletheyhavethecapacitytoprovide,forexample,coresupport,partnershavetobeclearaboutwhattheyneed.Often,iffundingissetupinacertainwaywithinadonor’ssystems,itbecomesveryhardtochangehowitisstructuredlater.Spacethereforeneedstobecreatedforpartnersneedtoexertmoreagency,allowingthemtoguidefundersandsettheirownterms.



Thecurrentsystemhasresultedinthecreationofalayerdescribedbyglobalconsultationparticipantsas“professionalversusgrassroots”groups.Oneoftheconsequencesoftheprofessionalizationofgroupsworkingonpeacebuilding,democracy,andhumanrights(andpossiblyothersectors)isthattheyhavehadtodeveloptheskillsnecessarytocompeteintheforeignassistanceindustry.Grassrootsactors,bycontrast,havelimitedopportunitiestoenterthegameinthefirstplace.Asaresultoftheseparameters–orperhapssimplybychoice-theymaydismissdonorprioritiesasfickleandirrelevanttotheirwork.Asonefundernoted,“Professionalcivilsocietyhaslimitsofitsaspirations–thedreamismovingfromprojecttocorefunding.Versus,whatifyouretro-fittedthiswholesystemfromtheverystart–howwouldyouvaluenetworksanddignityandvoiceandpowerandtrust.”Arelatedissuemeritingfurtherexplorationishowtheprofessionalizationofactivism–andthewayinwhichfundersmaybecomplicitinthisphenomenon–hasoutcomesthatarepotentiallyproblematicandcontrarytosocialchange(forexample,thewayinwhichexternalfundingcandistorttheincentivesofgrassrootssocialmovements,asdiscussedinPartIV).

Tackling power

Theresponsesoflocalorganizationstothequestion,What strategies have you used to shift the power dynamic so that donor–grantee relationships are not top down or prescriptive?,illustratethatthoughtheytrytheirbest,itisdifficultforthemtoenvisageoptionsoutsideexistingcurrentstructures.Onestatedthat,“Inourexperience,fundinghasalwaysbeentopdown,thedonormakestherulesandwefollow.Theonlywaywecanshiftthisdynamicisnotto‘bend’totheirthinkingbuttosticktoourideals.”Anotherexplained:

“Wehaveprovidedfactsthathavedemonstratedthatthefeaturedworks[donor-selectedprojects]arejustmarketingcreatedbyNGOleaders.Wehavebeenaskedfor[a]changeofleaderseverytwoyears,butthishasnotyetbeenrealized,changeofmembersandboardthathavenotbeenefficient,wehavewrittennewpoliciesonmonitoring,wehavepassedthehierarchylevelandparticipatedinconferencesonthelevelofthedonor.Wehaveworkedharderinresearchingtheworkthatisgoingtomakeusindependent.WearenowinthephaseofcompilingpoliciesandstrategiesforregionalandinternationalcoordinationforbetterrepresentationoftheCenter’starget.Weneedtohavemorecourageandworkharder.”

How do we move forward?

Anypowerrelationshipisadynamicbetweenthepowerfulandpowerless.How,then,canthedisempoweredbreakthisdynamic?Thefundersfeaturedinthisresearchareworkinghardtoenablethis.Onewayisthroughparticipatoryphilanthropy,withtheprinciplebeingthatlocalactorsaregiventheabilitytomakedecisionsonhowresourcesarespent.Thisapproachplacesvalueonsocialcapital–whilethepeople

involvedmightnothavepowerinthewayweconventionallyunderstandit,theydohaveareputationamongtheirpeers.ThisisalsotheprinciplebehindGrameenBankandthecommunity-ledsavingsandloanmovement,withsocialcapitalanimportantdynamicthatcanbeleveragedinorderthatcommunitymembersholdeachotheraccountable.Whiletherearecritiquesofthemicrofinancemovement,thisaspect



ofaccountabilityisnotapartofmostWesternmodels.

Community-ledphilanthropyisanotherwayofshiftingpower.Whereasparticipatoryphilanthropyismoreaboutanadministrativeprocessinwhichmovementmembersplayakeyroleinhowresourcesfromanexternalsourceareallocated,community-ledphilanthropyisbasedonanentirelydifferentparadigmfocusedoncommunitiesgeneratingnewassets,withexternalresourcesprimarilyservingacatalyticpurpose.

Anotherwayofaddressingthecurrentpowerdynamicistoreducedependenceontraditionalsourcesoffunds,or,morespecifically,bringinnewsourcesoffundingnotsubjecttotheoldconstraints.Thismaybethroughinnovativefinance,helpingcommunitiesdeveloptheirownassets,orpracticingradicalflexibility.Forexample,severalfundersinthisresearch–includingPeaceDirect–have“financialstability”fundsthatorganizationscanaccesstoaddressgapsincoresupport.Moregenerally,thismeansgivingresourcesinawaythatdoesn’treplicatethewell-knownproblemsofexistingparadigms.


Part III: A New Approach to Funding Local Peacebuilders


Thenumerouswell-documentedchallengestofundinglocalactorscanbeameliorated.Anovelapproachtodoingthis,however,requiresthreeelements:

• Newdonorsfocusedonsocialchangethroughinnovative(andthus,riskier)methods.

• Anewmechanismtosupportlocalpeacebuilders.

• Advocacytochangethecurrentfundingparadigm.

Threepromisingmeansofaddressingtheseelementsare:

• Community-drivenphilanthropy.

• Innovativefinance,suchasoutcomefundsorimpactcredits,gearedforuseinconflictandviolence-affectedsettings.

• Philanthropicgrant-givingexplicitlybasedon“radicallyflexible”andrelationalpartnershipprinciples.

Thesethreeapproachesaredescribedconceptuallyinmoredepthbelow.However,anessentialnextsteptounderstandinghowthesetoolscaneffectivelybeutilizedinfundinglocalactorswillbetodevelopaspecificsetoffundingorinvestmentcriteria.Thiswillhelpdeterminewhichtoolsaremostappropriateforaparticularcontext–SriLanka,forexample,isaverydifferentfundingenvironmentfromYemen.

Community-driven philanthropy

Community-ledphilanthropyandcommunity-basedlendingarepredicatedoncommunitiesdefiningtheirownprioritiesandworkingtogeneratetheirownassetsinordertoaddressthem.

MohammedYunuspioneeredtheideaofcommunity-ledsavingsandloanschemes,providingevidencethat,asaninvestor,youcanfundasocialcause(povertyalleviation)andgetyourmoneyback.Furthermore,thismovementdemonstratedthatcashplaceddirectlyinthehandsofcommunitiesiseffectiveinliftingthemoutofpoverty.Acumensimilarlyelevatedtheconceptof“patientcapital”–resourcesaugmentingtraditionalphilanthropyandsupporting

effortstoscalemarket-basedapproachestomajorsocialproblemssuchaspoverty.ThiswasdonemainlythroughprovidingtrainingandeducationtoagenerationofGlobalSouthentrepreneurs,ratherthanlargeamountsoffunding.Thehumanitarianassistancefieldhasnowdeterminedthatcashtransfers–givingcashratherthangoodstoqualifyingrecipientssuchasrefugees–areamongthemosteffectivemeansofaddressingtheconsequencesofforceddisplacement.Therefore,thereisnowasignificantbodyofevidencefromarangeofsectorsdemonstratingthatcommunity-ledfinancingworks.Furthermore,variousactorsareconductingimportantcommunity-ledandparticipatoryphilanthropyefforts,with



FoundationsforPeace,forexample,utilizingthesemethodologiesinconflict-affectedcountries.

Thereispotentialtobuildontheseeffortsthroughmodelspioneeredby,amongothers,FoundationsforPeace,theGlobalFundforCommunityFoundations,andSpark

8 Blockchaintechnologyisanewcyberinfrastructuresystemthatallowsforthecheapandefficientglobaltransferoffundsandcapitalbetweenbuyersandsellers.See“InnovativeFinancetoSustainPeace:MappingIdeas”foramorecomprehensivediscussionofblockchaintechnologyandotherinnovativefinanceapproaches.

9 Seealso:Sarkisova,A.andPerakis,R.,“InnovativeFinanceforDevelopment:AGuideforNGOs,”InterAction,Washington,D.C.,2019.

Microgrants,whichfocusonhowexternalactorscanempowerlocalcommunitiestodetermineprioritiesandspendresources.Aresearch-ledprogramcouldprovideevidencethatcashtransfersforpeace–thatis,community-ledandparticipatoryfinancing–haveameasurableimpactonviolencepreventionandpeacebuilding.

Developing “innovative finance” tools for complex settings

Distinctfromestablishedphilanthropyefforts,innovativefinanceinvolvesadaptingnewtools(suchasoutcome-basedfinancingandimpactcredits)andemergingtechnologies(suchasblockchain)toconflict-affectedcountries.8Ashasbeennotedelsewhere,whileinnovativefinancedoesnothaveaprecisedefinition,itdoeshaveseveralkeysignatures:adaptingexistingfinancingtoolstomakethemmoreeffective;addressingagapinfunding,particularlythroughleveragingmoreflexiblefunding(notproject-specificresources);integratingnewtoolsintoexistingfundingapproaches;providingefficientfundingatthenationallevelandtherebyenablingcountriestoestablishtheirownpriorities;andfinancinginnovation.Theseholdthepossibilityofradicallydisruptingtraditionalfundingmodels.9

Forexample,thecurrentforeignassistanceparadigmisessentiallyflippedby“outcome-basedfinancing,”withdonors/investorsinthelattermodelconcernedonlywithwhetheraparticularprojectachievesanagreeduponsetofobjectives.Inthisuniqueapproachtofinancing,howthishappensislargelyinconsequential,

withroutineelementsoftheforeignassistanceindustry–suchasmonitoringandevaluation,anddependenceonintermediaryoutputsandoutcomes–viewedverydifferently.Thisisnottosuggestthatnointermediarymonitoringandreportingisrequired–rather,thismodelprovidesimplementingorganizationswiththeflexibilitytopursueprogrammaticactivitiesastheyseefitandreportonthemastheyunfold.

Additionally,acrosstheglobe,thereareorganizationsworkingoninnovativetechnologies,suchastheuseofblockchain.Topl,forexample,isbuildinganopen-capitalinfrastructureutilizingblockchaintechnologythatistailormadetodevelopingcontexts.Throughenablingmoredirectaccessbetweeninvestorsandlocalactors,Topl’saimistoovercomethebarriershinderinginvestmentinemergingandfrontiermarkets.Investorswillmoreeasilybeabletofindinterestingopportunitiesandlocalactorswillfindenthusiasticinvestors,therebyraisingmuch-neededcapitalforarangeofprojects.Sucheffortsandtechnologiesshouldbesoughtoutandadaptedasappropriatetovariouscontexts.



Research and development related to “innovative finance” tools

Thereissomeworkbeingdone,ledbyinstitutionssuchastheInternationalCommitteeoftheRedCrossandtheWorldEconomicForum(highlightedintheirnewreport,“HumanitarianInvesting:MobilizingCapitaltoOvercomeFragility”),todevelopnewapproachestofinancinghumanitarianissuesinconflict-affectedregions/countriessuchasSouthSudanandtheEasternDemocraticRepublicofCongo.Significantresearchanddevelopmentinvestmentisneededtosuccessfullytesttheseapproachesonbehalfoflocalactors–whileinnovativefinanceapproachespresentexcitingopportunities,theyarenotapanacea.Critiquesneedtobethoughtfullyconsidered,andthereisworktobedone

10 See:Kantowitz,R.,“InnovativeFinancetoSustainPeace:MappingIdeas,”CenteronInternationalCooperation,NewYork,NY,2019.

educatingbothfinanceexpertsandpeacebuilders:

Peacebuildersneedabetterunderstandingoftheprofitmotiveinamarketthatisnotfunctional.Whatmotivatesprivatesectorinvestors?Howdowecombinethetechnicalexpertiseofthosewhohavespentdecadesworkingonconflictandareadeptatunderstandingconflictanalysisandprinciplessuchas“donoharm”(toavoidexacerbatingorcreatingsocialtensions)withfinanceexperts’knowledgeoftools?Howdowedevelopacommonsetofrigorousandmeaningfulindicatorsonviolencepreventionandpeacebuildingthatcanbeutilizedinconjunctionwithmechanismsthatrequiretargets,withthepotentialtospurmoreefficiencyinprogrammaticfundingandoutcomesforpeace?10

Addressing complexity

Thepromiseofpeacebuildingisperhapsthatitoffersaninterdisciplinaryumbrellaunderwhichdisparateandsiloedapproachestofundingcanbebroughttogether.Fundersandimplementorshaveexploredvariousmethodsofaddressingtherapidlyshiftingneedsofactorsincomplexenvironments,includingadaptivemanagementforpeacebuilding.Furthermore,therearegroundbreakingapproachestodataanalyticsthatcouldbeusedtobetteridentifyinterventionpoints.Fewfundershaveconnectedtheseelements.

Thus,asuccessfulapproachtofundingwillalsobebasedon:

• Understandingconflict-affectedsettingsasacomplexadaptivesystem.Thismeansinvestingincutting-edgeanalysis/dataanalyticstomapthesesystemsandpromotingresiliencebyidentifying(and

funding)organizationsworkingatkeyleversofchange.

• Connectingtheaveragecitizenwiththeglobalregulatorysystemthatprotectsrightsandpreventsconflict.Thismeansprovidingsupporttolocalefforts,inparticularthroughcorefunding,buildingcoalitions,andsupportingcommunity-ledcollectiveaction.

• Bridgingskillsets.Whileadvocates,lawyers,researchers,policymakers,andprogramimplementersareallengagedinworktacklingtheseissues,theirworkisrarelycoordinatedinanimpactfulway.Theskillsetsofeachofthesegroupsisessentialtoendingviolence–fundershavethetoolstomorestrategicallyandsystematicallyconnectthemthroughconveningsandcoalitions.



Grant-giving based on radical flexibility and collective action

Inpractice,grant-givingbasedonradicalflexibilitymeansfocusingon:

• Providingcoresupportwhilelimitingadministrativeburden.

• Fundingcollectiveactionandaconstellationofinterrelatedpartners–eitherindividuallyorcollectivelythroughjointprogramsoranetwork.

• Utilizingafundamentallyflexibleapproach,focusedongrassroots-drivenneeds–whetherthosearefinancialresources,technicalsupport,oraccesstotheinternationalcommunity.

• Developinglongstandingandmutuallybeneficialpartnershipswithlocalactors.

• Embracinginnovativefundingapproachesoutsideoftraditionalgrants,suchascommunity-ledandinnovativefinance.

Thisapproachwillbuildonthesuccessesofexistingmodels–manyoftheproponentsofwhichwereinterviewedforthisproject–inwhichfundersaretruly

alliestolocalactorsandcommunities,providingthemwiththespaceandpowertoeffectthechangestheychoosetoprioritize.

SummaryIfweareseriousaboutachievingsuchmilestonesastheSustainableDevelopmentGoals(SDGs),bettermeansoffundinglocalactors,andpeacebuildersinparticular,mustbefound.Recentreportingshowsthat,intermsofUNfundingsupportingSDGs,thesustainingpeaceagendalagsthemostbehindtargets.Thethreelinesofeffortproposedaboverepresentacombinationofcutting-edgeapproaches,thoughthefunderscurrentlyutilizingtheseapproachesbyandlargedonotfundpeacebuildingperse.Infact,weknowverylittleabouthowtoapplyinnovativefinanceapproachestoconflict.Itisessentiallyanentirelynewspaceinwhich

fieldssuchasdevelopmentandhumanitarianassistancearefaraheadofpeacebuilding,andhavethuspavedthewaysomewhat.Whilemuchcanbelearnedfromthesefields,significantdonorinvestmentinresearchanddevelopmentisrequiredtocalibratetheseapproachestoviolenceandconflict-relatedissuesandlocalactors.Notalloftheseapproachesarebrandnew–particularlyutilizinggrantfunding,eveninaradicallyflexiblemannerandtheideaofcommunityfoundations–thoughtheyarenotmainstreamed.Thesearepromising,realisticsolutionstoaddressingthedirefundinggapfacedbylocalactors.



ConclusionsAtroveofthoughtfulreflectionsemergedfromthisproject,includingmanyusefulpointsrelatedtowhyfundinglocalactorsisstrategic.Whilethereappearedtobeconsensusonneedsandchallenges,nosystematicapproachemergedastohowprivatedonorscanbesteffectchangeintheirsupportoflocalactors,witheachdifferentapproach-fromtraditionalgrantgivingtoseedingcommunityfoundationstofunding“clusters”oforganizationsworkingonissuesthematicallyandgeographically-hasvalue,advantagesanddisadvantages.

Conversationsaboutstrategyandwhetherprevailingnormsmightactuallyfurthermarginalizethosetheyseekempowerdonotappeartohappensystematicallyintheworldofphilanthropy.Thedegreetowhichdonorsreflectonfundingpracticesandinstitutionalaccountability–particularlytolocalcommunities–seemsdependentonthewill,interest,andcapacityoftheindividualdonor.Many,eventhemajority,ofdonorsinterviewedexpressedfrustrationwiththeprevailingparadigmsinbothforeignassistanceandphilanthropy.Despitethis,theyaretooimmersedinrunningfundsand

workingwithpartners,ofteninextremelychallengingcontexts,tohavethetimetothinkabouteffectingchangeatasystemiclevel.Additionally,theyareoftentoodeeplyentrenchedinprevailingwaysofworkingtoknowwhatadifferentmodelmightlooklike.Indeed,onetakeawayfromtheglobalconsultationwasthatthisfundingarchitectureandsetofassumptionsissodeepseatedthatitisjustashardforlocalactorsonthegroundtoarticulatealternativesandhowtochangethestatusquo.Thisreporthassoughttoaddressthisbyarticulatingsuccessfulstrategiesandpotentialsolutions.

A world with less violence is possible; equally, sustainable peace can be a reality. As Dylan Matthews, CEO of Peace Direct, notes, “Peace and stability is the necessary precondition for all other social good initiatives. We cannot solve the big problems of our time, such as climate change, poverty and disease, if countries are being torn apart by war.” In terms of donor assistance, peace requires a fundamental shift in power away from the prescriptions of international actors towards local leaders and knowledge.


Part IV: Supporting Evidence – Challenges


This section presents the evidence that emerged from this research describing the challenges with the current funding paradigm and approach. As noted previously, this discussion is presented at the end of this report due to the desire to focus on constructive practices and solutions; however, these data are rich and worth exploring. They have been summarized here into five themes.

CHALLENGE ONE: Assumptions and fallacies

Asoneintervieweenoted,changingthecurrentfundingparadigm“…requiresunpackingdeeplyingrainedassumptionsandchallengingtheinherentpaternalisminmosttraditionalapproachestophilanthropy.”Theresearchforthisreportrevealedanumberofassumptions,knowledgeshortfalls,andfallaciesheldbydonors,including:attitudesaboutcontrol,duediligence,andrisk;atendencytoprivilege“known”organizations(usuallynationalorinternational-levelorganizations);misalignmentbetween“capacitybuilding”effortsaimedatlocalorganizationsandactualcommunityprioritiesorprocesses;andlackofunderstandingabouttheimpactoflocalorganizations’work.

Suchassumptionsandblind-spotsareproblematic–theyexacerbateinequity,furtheringrainpowerdynamics,and,ultimately,impedetheworkthesefundsaremeanttoenableinthefirstplace.Underlyingmanyoftheseassumptionsistheideathatfunders’methodologiesarebasedonequalityand“fairness”–thatis,everyonehasthesameresourcesandtheplayingfield

whencompetingforresourcesislevel.Inreality,thisisfarfromthecase,asthisreportanddecadesofresearchprecedingitbearsout.VuLenotesthatthefieldofphilanthropyhasbeendiscussingequity–definedas“figuringoutwhichcommunitieshavethemostpressingneedandensuringsignificantresourcesandpowerareconcentratedwithinthosecommunities”–foradecade,andyettheseassumptionsandfallaciesremainpervasive.Theredoexiststrategies–suchaseliminatingonerousapplications–thatcanprovide“fieldcorrections,”therebypromotingequity.

Thesethemesareunpackedbelow,withanemphasisonillustrativequotes.

Needs

Internationalactorstendtomakeassumptionsabouttheneedsoflocalcommunities,specifically,theirmainchallengesandthebestwaysofaddressingthem.Asoneintervieweeobserved,“Theinternationalcommunityneedstogivelocalorganizationsstructuresandframeworks



thatsupporttheirownlocalnarrativesversusthenarrativetheythinkdonorswanttohear.”Severaldonorsnotedfrustrationthatthenarrativesputoutbytheinternationalcommunity(meaningallexternalactors)arepredominantlybasedonprojectswithdefineddeliverables,ratherthanfocusingonlesstangibleelementssuchaspromotingdignityandrelationships:“Inaparadigmthatworkedmoreeffectively,programdeliverables[suchaswatersystemsandhealthclinics]mayalmostbeabyproduct–butwedon’thaveboxesfortheotherthings.Wepresumethateverycommunityisfocusedoncertainsetofoutcomesrelatedtodevelopment–thatmaybetrueanditmaynotbetrue.Eveninthepoorestcommunities,povertyreductionmaynotbetheirstartingpoint.”

Evenifitcanbeagreedthatcertaininternationalnormsareimportant–suchaspromotingtheparticipationofgirlsorincreasingaccesstojustice–thewaysinwhichprogramsaresetuptoachievesuchaimsareoftendrivenbyGlobalNorthpartners,ratherthanderivedfromhowlocalcommunitiesmightapproachtheseissues.

Control, due diligence, and risk

Theconceptof“risk”–asrelatedbothtolocalorganizationsgenerallythatmay“lackcapacity,”andspecificallytofragileandconflict-affectedsettings–cameupfrequently.Butriskforwho?Onedonornoted,“Wetalkabout‘appetiteforrisk’–whydon’twetalkabout‘appetitefortrust.’Whyisitthismentality‘guiltyuntilproveninnocent’?Whenyoutalkaboutrisk,[thelocalorganizations]areassumingtherealrisk.Theyliterallyrisktheirlivesandjobs.What’s[thefunders’]risk?Thatourreputationswillbeaffected?Thatwewilllose10K?”Anothernoted,“Thesepeoplerisktheirliveseverydaytocreatepeaceintheirlocalcommunities–we[externalactors]havenoideawhattheyshouldbedoing.Theydon’thaveanexitstrategy,theydon’tgettogoinforatwo-weekassessmentandleave.”

Thisisanothertopicperenniallyontheradaroftheinternationalcommunity,withthusfarnosignificantshiftinattitudeorapproach.Inaseminal2012report,theOrganizationforEconomicCooperationandDevelopment(OECD)notesthecurrentapproachtoriskinconflict-affectedundermineseffectiveoutcomes:

Appropriaterisk-takingisessentialtoeffectiveengagementinfragileandtransitionalsituationstodeliverlonger-term,transformationalresults.Exposuretocorruptionandfiduciaryriskisaninevitablepartofengagementinfragilestates–butthatdoesnotmeanthatithastobetoleratedorthatitcannotbemanaged.Takingappropriaterisksrequirespoliticalbacking,therightincentivestructures,sufficientstaffcapacityandappropriateinstitutionalprocessesandcontrolmeasures.Italsomeansstrikingabalancebetweenriskandopportunityandtakingadvantageofsometimesnarrowwindowsofopportunity.Mostimportantly,itneedscollectiveactionandapproachestoriskmanagementacrosstheinternationalcommunity,[and]abetterbalanceofhigh-andlow-riskengagement…

Theabovestatementwasmadeinreferencetopublicforeignassistancefunds,butasthisresearchdemonstrates,suchattitudesarepervasiveinprivatephilanthropyaswell.Thisisdespitethefactthatprivatephilanthropyshouldintheoryhavegreaterfreedomtobemoreforward-thinkingintermsofrisk.Asonefundernoted,“…operationalpracticescanallowfordifferentlevelsofrisk,butsomeoneneedstostartturningthetidetohavetheventurecapitalmentalitybeabigpartofthepicture.”Anotherfunderobserved,“Theusualfundingbureaucracyisnotagoodfitforinnovatingincomplexoperatingenvironments–sowhydon’tweadoptadifferentposture?!Weneedamuchmoredynamicmechanismandapproach.Thewholeethosofventurecapitalism,forexample,isaboutrisk–whyaren’tweapplyingthesesamelessonsto



challengesintherestoftheworld?Expect30%ofyourportfoliotofail.Thatmeanswearepushingboundaries.Thisisgenerallytoodifficultforgovernmentsbutitshouldn’tbeforprivatefunders.”

Othersnotedthatthefundingecosystemhasdevelopedinsuchawaythatoneoftheessentialfunctionsoffundingintermediaries(orre-grantors–fundersthatdistributeforeignaidusuallyinsmall(er)grants)andinternationalNGOsispreciselytoabsorbrisk:

“One of the functions of intermediaries in the development industry is that they take on the burden of chasing grants, due diligence and assume the risk instead of passing it onto local organizations – but this is just one more layer that this structure has necessitated. What is really necessary is examining the assumptions behind the risk, lack of sustainability, etc.”

Relatedtothisaretheabsurdadministrativeburdensofteninvolvedinsuchprocesses.Inscrutablelayersofrulesthatmightoncehavehadsomebureaucraticlogichaveincreasinglybecomeabouttickingdonorboxesratherthanprovidingoversightorcombatingcorruption.Asonefunderstated,“Dowetrackeveryreceipt?No.Thatisnotonlyaninefficientuseofhumanresources,itposesdangerstopartners–ifIgetoutofacabinKabulandaskforareceiptfor$3,thatraiseseveryredflag[forthelocalpartner].[Itisthenrevealed],‘youarebeingfundedbyaninternationalorganization.’Justputatargetdirectlyon[localpartnersthroughtheseactions].”

Thistiesintothefallacythatiffundershavecontrol–likelythroughmonitoringandreporting–thenriskcanbemitigatedandoutcomesstrengthened:“Theimpulsefordonorsisthatthemorecontrolyouhave,themoreimpacttherewillbe.Thatisjustanincorrect–yetpervasive–assumption.We’veallseenfirst-handhowoverlyrestrictivegrantsenduplosingmoneyfor

donors,theyarenotagoodROI[returnoninvestment]–groupscan’tpivotandadaptwhatisworking,theyareoftenlockedintowhatisn’t.”

Privileging known organizations

ThereisaclearemphasiswithintheinternationalcommunityonfundingorganizationswellknowntoWesterndonors,whichresultsinsuchorganizationsreceivingprivilegedtreatment.Thisisoftenbecausetheyareperceivedtobeeffectiveatfulfillingthemanyoversightandadministrativerequirementstouchedonabove.Asonefunderexplained,“Thereisabuilt-inbiasaroundfunding‘established’organizations.Theinternationalorganizationhiresnationalprojectstaff,thentheseprojectstaffbecome‘gatekeepers’andoftengivepreferencetolocalorganizationsthattheypreviouslyworkedfororhaveagoodrelationshipwith.Thisalsohappenswheninternationaldonorslookforlocalactorstosetupprograms.Theygotoestablishedorganizationstoaskforrecommendations,theseorganizationsthensuggestotherlocalactorswhotheyhaveastrongrelationshipwith,ratherthanwhohasthebestcapacitytoachieveresults.”

Intervieweesagreedthatdonorsshouldinvestmorecapacityinanalyzingactorsonthegroundandgainingabetterunderstandingoftheirstrategicadvantages,ratherthansimplyrevertingtoaselectgroupofknownorganizations.

Capacity building

Onedonornoted,“Whatunderliesourbeliefsthatinternationalorganizationswillinherentlyutilizeourfundsbetter,orlocalorganizationsneedtobeabletofilloutlotsofpaperworkinordertodemonstratethattheyarecapable?Wearepreoccupiedbythekindsofcapacitiesthatdonorsneed,notnecessarilytheneedsoflocalorganizations.”Anotherasserted,“[Localorganizations]havethecapacitytodotheirwork,tobetrusted



bylocalcommunitiesandtoaddresslocalissues.Whatothercapacityarewetalkingabout?Reporting?Isthatnecessaryforthemtodotheseotherthings?”

Thesequestionshavebeenscrutinizedbydevelopmentprofessionalsfordecades.RobertChambers’seminalpiece,“WhoseRealityCounts”–detailinghowtheperspectivesofinternationalactorsratherthanlocalcommunitiesinformdecisionsaboutforeignaid–waswrittenover20yearsago,yetsuchassumptionsremainpervasive.Smallorganizationstheworldovervaryandmayhavegapsintheircapacities–thisisnotaGlobalSouthproblem.However,norshouldtheissuesitraisesbeminimized–asnotedearlier,localNGOsneedmoreoperatingsupporttohelpdeveloprobustprocessesandprocedures.

Partoftheproblem,though,isthatexternalactorsrarelyasklocalorganizationswhichcapacitiestheyneedtoimproveinordertofunctionefficientlyintheirowncontexts.Instead,donors’assumptionsoftengetgeneralizedtotheGlobalSouth.Onedonornotedtheexistenceofimplicit“…multiculturalimperialisminourassumptions–whydowemandate[thatorganizationsworkinginaspecificcountry]havetohaveacertainnumberofinternationalboardmemberstomeetdonorrequirements?[Isthisnecessary]toworkwithwidowsinRioNegro,Guatemala?Whatdoes‘lowcapacity’mean?Howweunderstandthesethingsmustchange.”

Conversationsinthisareararelyfocusonthelimitedcapacitiesofdonors,andtheirtendencytoimposeburdensome

requirements–suchasDoNoHarmandgenderanalyses–onapplicantsandgrantees.WhileDoNoHarm(theprinciplethatactionsshouldnotcauseinjury,injustice,ornegativeconsequences)andotheranalyticaltoolsmayidentifyissues,intervieweesnotedthatsuchrequirementsincreasegrantees’administrativeburden.Furthermore,theydon’tnecessarilytranslateintoaddressingobstaclesontheground,orcreatingmoreinclusiveprogramming:“…Ithinkthecapacityofdonoragenciesisoftenlackingwhenitcomestocontextknowledgeandtheirownplacewithinthatdynamic.DoNoHarmisnotanewconceptbutIthinkwhatittakesinpracticetoactonDoNoHarminaspecificcontext-avoidingcausingtensions,makingthingsworse-isoftenunderestimatedandtheburdenusuallyplacedonthegranteesratherthanthegrantgiver.”

Fundersconsidertheinclusionof“mapping”and“analysis”requirementsameaningfulattemptattacklingtheissuessuchprocessesaremeanttoaddress.Asaresult,theyfocuscapacity-buildingeffortsontheseprocesses.Forcapacitybuildingtobetrulymeaningful,however,itneedstofocusmoreontherealitiesofimplementingtheseanalyticalframeworksandstrategies,andhowissuesofpoweraredealtwithinlocalcommunities.Thesameistrueforduediligenceandfinancialoversight,withlocalorganizationsnotingthatdonoroversightcanimprovetheirprocessesandcreatemorerigor.Theobstacletothisisthatprocessesareoftenburdensome,moreaimedatmitigatingfunders’liabilityandmisalignedwiththelocalcontext.Ultimately,thisendsupunderminingtheworksuchfundsareintendedtosupport.



CHALLENGE TWO: Accountability

11 Seealso:Mukarji,O,“AidAgencies’UseofBigDatainHuman-CenteredDesignforMonitoringandEvaluation,”GenevaCenterforSecurityPolicy,Geneva,2016.

Accountabilityisgenerallylopsidedwithintheworldofdonorassistance,withmostprocessesaimedatpartnerorganizationsbeingheldaccountabletodonorsratherthandonorsbeingheldaccountabletothecommunitiesinwhichtheywork.11Intervieweesfrequentlymentionedthewayinwhichexternal/Westernmoneyoften“corrupts”or“distorts”grassroots,mission-drivenmovements.Theinfluxof(incrisis-affectedsettings,oftenmassive)flowsofdevelopmentaidcanfundamentallychangeincentivestructures,commodifyingmovementsandintroducingcompetitionforresourcesthatdidnotexistpreviously:“Bigmoneycanbedivisive–itcanactuallybringpeopleintobiddingforthatfundingforthewrongreasons;thereispotentialforcorruptionandparticularlyinaconflict-setting;thereisverymuchacalculationofwhichsideorwhichactorsaregettingthemostmoneyandthatcanbecomeanotherpointofconflict.”Regardingprivatephilanthropy,anotherintervieweenoted,“ThestructureofphilanthropyisthatitcurrentlyisonlyaccountabletotheIRS[InternalRevenueService]–meaningthereisproceduralaccountability:Didyoufollowtherules?Thereneedstobeaccountabilitytocommunitiesandpartnerswhichisalmostnon-existentorcertainlynotuniforminpractice.”Relatedtothisistheinternationalcommunity’soft-discussedobsessionwithmetricsandevaluation(addressedbelowin

ChallengeFive).Thoughtheprimarygoalofevaluationprocessesissupposedlytoascertainwhetherprogramsareimpactful,thesedataandprocessesarelargelyforthebenefitofdonorsinaugmentingtheirinternalprocessesanddecision-making.Localcommunities,meanwhile,gainlittlefromthem.Oneintervieweenotedthattheywere“…disappointedinhowthe[impactevaluation]movementevolvedbecauseitstrengthenedupwardaccountabilitytodonorsbutdidn’tcreateanyaccountabilitytowardscommunities–nowhereinthatparadigmaredonorresponsibilitiestocommunitiesandthenecessityofincorporatinghowcommunitiesunderstandimpact.”

Aninterestingcounterpointrelatedtothepowerofcommunity-ledfinancing(addressedatgreaterlengthinPartsIIandIII)wasraisedinthecourseoftheresearch.Indiscussingcommunityfoundations,whichoftengiveoutverysmallgrants,oneintervieweenoted,“Whywouldpeoplebothertoapplyforthisifyou’reinanenvironmentwhereyoucangetbigdevelopmentaid?Becauseofthenatureofpowerandresources–theactofgrantmakingdrivenbycommunitymembers–isitselfarealstrategytobuildthefrontlinesofcivilsociety.It’sacounternarrativetoabroken[internationalfunding]system.”



CHALLENGE THREE: Silos, systems, and complexity

12 Foramorecomprehensivediscussionofwhyfundersareaversetosupportingpeacebuilding,see:https://grantcraft.org/content/blog/new-study-on-philanthropy-for-safe-healthy-and-just-societies/

Silos

Severalfundersexpressedfrustrationthat,despitetheinterconnectednessoftoday’schallenges,conversationsaboutaddressingthemarestillhappeninginisolation:“Therearesomanycommunitiesofgrantmakers.ThereisthePeaceandSecurityFundersGroup,environmentalgrantmakers,grantmakersthatworkonchildren,refugees,andimmigration–alloftheseareasaresiloedinseparatecommunities.”Theinfluenceofentreprenuers,disrupters,andsocialmediameansthatthereisalsoanewsetofactorsinfluencinghowmoneyisspentthesedays,andtheconversationstakingplaceneedtoreflecttheserealities.Thisishappeningtosomedegree–blendedfinancebetweenpublicandprivatesectorsisawell-establishedapproachtodevelopmentassistance.However,theworldsoffinance,humanitarianassistance,andpeaceandconflictareleaguesapart.Ineffect,theyspeakdifferentlanguagesandareindesperateneedofmoretranslatorstobringthemtogetherandfacilitatemutualunderstandingoftheirrolesandinfluenceinfragileanddevelopingcontexts.

Manyfundersreflectedonwhythereareonlyahandfuloffoundationsworkingonpeacebuilding,andindoingsotheissueofsilosagainemerged:12“Youidentifyasanuclearfunder;aRussiafunder;aMiddleEastfunder…athisfunder,athatfunder…we’reathisorganization,we’reathatorganization–theindustrialcomplexhasthesenegativeimpacts(alsoaroundmeasurementandtheobsessionwithquantifyingeverything)…wehaven’tyetrealizedthecompellingstoryofwhy[workingacrosssilos]tofundwith[agender

orapeacebuilding]lenswouldmakeadifference.”Anotherfunderobserved,“We’vecreatedasystemwherepartnershavetoalternatelydescribetheirworkas‘women’srights’foronefunder,‘environmentalrights’foranother,and‘peacebuilding’–ormorelikely‘security’or‘counter-terrorism’–forathird.”Athirdintervieweestated,“Howdoprogressivefundersgetbetteratmakinglinkagestopeacebuilding?Therearetimeswhen,forexample,humanrightsfundersarefundingworkwherethereisareallyclearintersectionwithpeaceandsecurity–YazidiwomenorSriLanka–andyetweneedtobetterunderstandhowthingslikeaccesstoeducationandjustice,localgovernance,supportingdiversityandinclusion–reallylocallyledinitiativesthatmightlooklikecommunity-buildingbutinvolvedifferentkindsofpeoplewhomighthavehistoricallyhadconflictswitheachother–howisthisfundingconnectedthroughhumanrightsanddemocracyandgovernancefunders.”

Therearecasesofinnovativefunderssuccessfullyweavingtogetherthematicapproaches.TheFoundationsforPeacenetwork,forexample,containsanumberoffundsthatarediversegeographicallybutareboundtogetherbyafocusonpeacebuildingthroughsupporttowomen’srights.

Managing complexity in conflict-affected countries

Manyintervieweesjuxtaposedthecomplexchallengesofworkinginconflict-affectedcountrieswithhowfundingstreamsandNGOactivitieshavebecomeverysiloed(forexample,focusingonparticularcountriesorspecificthematicissuessuchasatrocitypreventionorclimatechange).Somespoke



ofthedifficultiesofconflictpreventionandpeacebuildingwhensuchactivitiesrelatetoawiderangeofdevelopmentandhumansecurityissues.Inparticular,intervieweesnotedthatinconflict-affectedcountrieswhereinter-grouptensionsmaybeextremelysensitive,itisnotalwaysappropriatetofocusdirectly(orimmediately)ontraditionalpeacebuildingactivitiessuchasdialogue,reconciliation,truth-telling,andmemorialization.Abetterapproachinsuchsettingsmightbetosupportcommunitydevelopment/serviceprovision,education,orwomenandyouth–activitiesthatmaybettermeettheprimaryneedsofhighlywar-affectedcommunitieswhilealsohavingsecondarypeacebuildingoutcomes.Inthesecases,thepeacebuildingbenefitisacorollaryprogrammaticbenefit,resultingfromimprovedtrustandstrengthenedrelationshipsandsocialcapital.

However,asafunderorimplementor,isitpossibletodifferentiatetheseactivitiesfromthosefundedthroughdedicatedpublichealthoreducationresources?Thechallengeofapeacebuildinginterventionbecomingbotheverythingandnothingisonethatdonorsandimplementorsalikestrugglewith.Evenso,oneelementthatclearlydifferentiatespeacebuildinginterventionsisthefactthatarigorousconflictanalysisisconductedandpeacebuildingoutcomesaretracked.Donorsandlocalactorsbothnotedaneedtomoreclearlyarticulatewhattypeofapproach–peacebuildingasprimaryorsecondaryoutcomes–isappropriateunderwhichcircumstances.Someintervieweesalsonotedthatdonorsare(perhapsslowly)shiftingtheirfocustowardprevention,whichrequiresamoreholisticapproachandbetterunderstandingofconnectionsacrosssilosandcollectiveimpact.Furthermore,muchofpeacebuilding’scredibilitycomesfromworkingthroughviolence,ratherthanengagementafterrelativestabilityoraformalpeaceagreement–thus,itisimportanttothinkcarefullyaboutlong-termengagementandprevention-focusedinterventions.

Operationally,whatthisrequiresisdedicatedstaffandamissionthatfocusesonconnectingtheseissues;breakingdownsiloswhilearticulatingareasofpriorityandconcernforfunders.Perhapsthemostimportantpartofthisprocessisbeingguidedbywhatthattheresponseonthegroundactuallylookslike–thoughgrassrootsorganizationoftenasamatterofcoursetakeaholisticapproachtotheirwork,theexternaldonorcommunityforcesthemtocompartmentalizetheiractivitiesintoprojectsandpredefinedcategories.Furthermore,workincommunitiesislikelyorganizeddifferentlyfromhowthesilospresuppose.Oneintervieweespokeoftheneedforadifferenttypeofintegrationfocusedonbuildingdifferenttypesofsocialcapital.“Bridgingsocialcapital”referstoverticalconnectionsbetweenindividualsthattranscendsocialandidentitygroups,whereas“bondingsocialcapital”involveshorizontaltieswithinaparticulargroup:

Individedsocieties,bridgingsocialcapitalismissing.Donorsarenotawareaboutlocalandregionaldynamicsofsocialcapitalformation.Thesedynamicsmaybeofmembershiptoaparticulargroup(ethnic,religious,lingual,caste).Thefundinggoestothosewhohaveverticalsocialcapitalwithdonorsaswellaslocalactorsindonororganizations.Theparticulargroupmembershiphelpsinseekingthefundingbutinrealitytheystruggletoworkinanenvironmentwherebridgingsocialcapitalisimportant,whichtheydonothave.Theyfacedifficultiesindevelopingbridgingnetworks(tooperateinanareawhichisethno-religiouslydifferentfromthepeacebuilders)todelivertheprojectgoals.Localgovernmentofficialsalsohesitateinbridgingdonorswiththelocalsduetopoliticalpressurefrominside.Thus,bondingsocialcapitalhelpsinseekingfunds.However,thelackofbridgingsocialcapitalbetweendonorsand[abroaderrangeof]localstakeholderspreventsinachieving[sustainable]deliverables.



Donorsandlocalactorscannotfocusoneveryissueandmethodologyineverycountry–therefore,approachesthatcantoleratethecomplexsystemsthatfoment(aswellaspreventoraddress)conflictmustbedevelopedandprioritized.Theabovediscussionsuggestsaneedtorethinkhowfundingisdisbursedvis-à-visthetypesofrelationshipsitcultivates,andwhatrelationshipsarenecessaryforsustainableimpact.Suchanapproachmightbetteranalyzeandengagedifferenttypesofsocialcapital,focusingonprocesses–suchasfacilitatingcommunityparticipationindecision-making,orcreatingnetworksand“clusters”oforganizationsworkingonissuesfromarangeoftechnicalperspectives(e.g.advocacy,research,legal,socioeconomic)–ratherthanoutcomes.Networksandcollaborationsarealsoimportantonthedonorside.Thesefindingssuggestthatanyneweffortfocusedspecificallyonlocalpeacebuildersshouldworkinclosecollaborationwithaconstellationofotherfundingactors,includingthosefocusedonchildren,women,povertyreduction,migration,andrapidresponsemechanismssuchasUrgentActionFund.

Systems

Allfundinginterventionstakeplaceincomplexecosystemswherehundredsofvariablesinteract,creatingpositiveandnegativesocialconditions.Abetterunderstandingofstrategicinterventionpointswithinthesesystemsisneeded.Alsorequiredisanimprovedunderstandingofactorsonthegroundandtheirstrategicadvantages,aswellastheuniquevalue-addedofdifferentfundersandmechanisms.Somefundersarebetterpositionedtosupportcertaintypesofeffortsthanothers–forexample,governmentdonorsaremorelikelytobeeffectiveatpartneringwithnationalinstitutionsduetothescaleofresourcesrequired,whereasprivatephilanthropistsmaybebettersuitedtofundinglocalactors.

Asystemsapproachmustcreateconnectivetissuebetweenlevelsofsociety.Fundersareincreasinglyrecognizingthat,“Youcan’tjustfundlocal…thereisanimperativetoprovideresourcesthatprotectactivists,butthisisinsufficientbecauseworkisalsorequiredtoreformtheinstitutions–forexamplepoliceandsecurityservices–thatarecreatingthethreat.”Thechallengefordonorsisinfiguringouthowtogetresourcestoeffectivelocalactorsoperatingatinflectionpointsofchange,whileamplifyingtheseeffortsthroughnationalandinternationaladvocacy,research,andlearning.Thefundersthatlocalorganizationsoftenperceiveasmosteffectivearethosethatconnectthelocaltothesubnationaltothenationaltotheregionaltotheinternational,prioritizingadvocacytochangesystemsandpolicies:Asoneintervieweeobserved,“Thetrustthatyoubuildwithgranteesandtheperspectivethatyougainthatyoucan’tgetifyouareonlyworkingatonelevelofthesystemisanextremelyimpactfulwayforfunderstowork.IfyouarelookingatviolenceinMexico,yougetacompletelydifferentperspectiveworkingoninternationaladvocacythantalkingtolocal,community-basedorganizationsabouthowviolenceandthedrugwaraffectsthem.”

Therearesectorsthatareabletodotheaboveinmoreproductivewaysandwithgreateralignmentbetweendifferentlevelsofthesystem.Theagriculturesectorisoneofthese:“FunderscanfocusonR&Dtodevelopnewseedsandfertilizersbutalsothemechanismsofdistribution,howyougetthoseseedsintothehandsoffarmers,howtheclimatemightaffectthem,andnewwaysofmitigatingtherisksrelatedtodisasters–forexample,disasterinsurance.”

Thereareimportanteffortstounderstandcomplexadaptivesystems,includingworkfundedbytheOmidyarGroupandresearchoncomplexity,peaceandstabilityconductedbytheAdvancedConsortiumonCooperation,Conflict,andComplexity



atColumbiaUniversity’sEarthInstitute.However,oneparticularlyneglectedaspectofthesystemissupporttolocalresearchandpolicyactors.Forexample,oneintervieweewhoseworkfocusesonfoodsecuritynotedthatinthefieldofagriculturaldevelopment,“ItisvitalthatthereareAfricanresearchersclosetothechallenges,andthattheinternationalcommunityisstrengtheningtheirtechnicalcapacityandbonafides.”Thisthinkinghasnotextendedsystematicallytosocialjusticesectors,thoughtherearenotableeffortsbyfunderssuchastheCarnegieCorporationtofillthisgap.

Whenspeakingofawomen,peace,andsecurityinitiativewidelyconsideredveryeffective,onefundernotedthattheyfundedorganizationswiththeimperativeof“…developingastrongenoughecosystemofactorsandorganizationsthatcould

buildthecapacitytoengagebothatthegrassrootsmovementslevelandthelawandpolicylevel-the‘grasstops’.”Theirsystemsapproachincorporateddifferentecosystemlevels,aswellasconsiderationofthevariousskillsetsrequired.Thisanalysisledthemtofocusontransformativeleadershipandcourageousstorytelling:“Thestorytellinggranteeswerereallyfocusedonhowwetellthestory,notfocusedonthewonkypolicyissuesbutrathertellingthestoriesofwomenonthefrontlinesofconflict.”Thefunderalsotookonthenetwork-buildingaspectoftheworktoensurethattheircohortofgranteeswereconnectingwitheachother.Additionally,theyworkedwitheverygranteetogivethemsocialmediatraining,content,shortreels,andcompellingstorytellingtoolsthatcanbeusedwhencommunicatingwithlegislatorsandotheraudiences.

CHALLENGE FOUR: Collaboration, movements, and collective action

AsBridgespan’srecentreport,“HowPhilanthropicCollaborationsSucceedandWhyTheyFail,”reveals,thereisgrowinginterestamongfoundationsincollaborationandcollectiveaction.Whilevariouscoalitionsoffoundationsarecurrentlyworkingtobesmarterabouttheirinvestments–specifically,howtheycanmoreeffectivelyfundlocalactors–theseeffortstendtobesiloedandfocusedondistincttechnicalareassuchaseducation,childprotection,atrocityprevention,andlegalempowerment.Giventhelackofconnectivetissuebetweentheseinitiatives,itisunclearhowsuchcollaborationsinformphilanthropyasasector.Equallyuncertainisifandhowtheymightgenerateatippingpointtochangethecurrentfundingparadigm.

Furthermore,thereisadangerof“donor-ledgrassrootsmovements.”Isitpossiblefordonorstosupportthespacescreatedbygrassrootsactivistsandmovementswhileatthesametimenotpollutingthesespacewithdonordynamicsandtensions?What,then,istheappropriateroleforexternalactorsinthisprocess?Sadly,therearecountlessstoriesofforeignaidfundamentallychangingthenatureofgrassrootssupport(forexample,monetizingmovementsandintroducinganelementofcompetitionforresources,therebycontortingamission-drivenprocessintosetsofactivitieslargelydictatedandmeasuredbytheinternationalcommunity).

Itisnotthattheseexternalinterventions



havefailedtoproduceanyprogressatall,particularlywithregardtoglobalhealth,girls’education,andotherbasicdevelopmentprocesses.However,progressonpreventingviolenceandpromotinghumanrightshasbeenquestionable,andhowexternalactorsmightbestsupportgrassrootsmovementsinsocialjusticeissuesremainsanopenquestion.Howcantheinternationalcommunityempowermovements–asoneintervieweenoted–to“…beasparkandacatalystbutnotinthedriver’sseat,wherethereislargelyaconservativesetofoldwhiteguysinpower”?

Grantmakersnotedthatwhileitisimportanttohaveallieswithininstitutionsandsystems,itisalsoessentialtocreatecentersofpowerbasedwithincivilsociety.Currentresearchonmovementsindicatesthatpowercomesvia:1)lowbarrierstoentry/involvement;2)flexiblestrategies;3)thecapacitytonotrelyonspecificpatrons;and4)theabilitytohavedifferentiatedlevelsofriskformembers.Asonefundernoted,“Akeyaspectofthisworkisthatdonorsworktogetherandcollaboratemoreeffectivelytocreatelearningagendasandoperationalstrategiesthatinfluencetheirpractices.”Morethanever,suchanapproachisneeded,workingacrossthematicsilosinasystematicway.

Fortransformationaddressingtherootcausesofviolenceandconflicttooccur,bothdonorsandlocalpartnerswillneedtomoveawayfromtechnocratic,siloedprojects.Instead,thereisaneedforworkcenteredoncollectivesocialchangeprocessesandthesystemicissuesthatoftenfomentconflict.Manyfundingapproachesfocusonanindividualorganization’sprogrammaticactivities.Whilethisemphasisonprogram-levelactivitiesisnotnecessarilybad,thereisoftenlittlecoherenceacrossdifferentprogramsandthusalackofunderstandingofhoweachcontributestochangingorevencreatingtherootcausesofconflict.Astheauthorofthisreporthaswrittenelsewhere,“Whentherearemultipleorganizations

workinginacommunity,eachisaffectingthelargersocial,politicalandeconomicsystemandcontext,butuntilweareabletodiscussthecumulativeimpactofallofthesedifferentprojectsandinterventions,itisnotpossibletotalkaboutsystemchange.”

Creating donor movements

Thereisalsoaneedtocreatea“movementmindset”amongdonors.Intervieweesnotedthatgovernmentsutilizearangeoftacticstoundermineworkondemocracy:“[These]strategiestoendangeractivistsandcreatepublicdistrustofprogressiveNGOs/groupsincludepublishing‘blacklists’ofactivistsandNGOsinmedia;spinningtheinformationnegativelyaboutworkofthosewhoareengagedinhumanrights,peacebuilding,anddealingwiththepast;fomentingattacksonactivists,theirworkspaces,andprivateproperty;onlineattacksandharassment,etc.”

Environmentsthatenableattacksagainstactivistsandevencitizens;theclosingofcivicspace;thecriminalizingofhumanitarianworkers;theinhibitingofafreepress,theinvokingofterroristdesignations;andtheunderminingofbasichumanrightsworkthroughtheutilizationofapoliticallandscapeinwhich“security”trumpseverything–sucharethealarmingglobaltrendsthatrequiredonorstotakeonarolethatgoesbeyondmerelyfundingnewactivitiesandprograms.Inthesecases,donorsneedtoplayanactivepartinmovementbuilding,aswellasactingasadvocates.Thelatterincludespresentingapositionandaffectingpublicopinionthroughwritingarticles,participatinginpublicforaandconvenings,andutilizingtheiraccesstodecision-makers.Inparticular,intervieweesurgedfunderstostartbeingstrategicaboutright-wingpopulistmessagingandactivity,withoneobserving,“Weneedtoinnovatetoeffectivelyaddressthesenewtrends–wecan’tusethesamemechanismsbecausewearenotupagainstthesameactors(e.g.



organizedcrime,terroristelements,etc.).”Anotherintervieweenoted,“Thereisacertainsubsetofdonorsthathavecometounderstandthatthesemovementsareunderthreat–theywillencounterobstacles,largelyfromtheoverlysecuritizednarrativesthatareplayingtoconservatives

andtrumpingeveryotherlineofreason.LookatColombia–somemightarguethatthevote[againstthepeaceplan]waslostbecauseofaneffectivecampaignrunbyafundamentalistgroupthatusedthelanguageofpatriarchytoderailthispeaceprocess.”

CHALLENGE FIVE: Evaluation/impact

Manydonorsandinvestorshavebecomeincreasinglyfocusedon“impact”andmeasuring“success.”However,suchpracticesareoftenmisalignedwithsustainablesocialchange.Theexpectationsoftheinternationalcommunitywithregardtotheimpactofaone-yeargrantareunreasonable,particularlyinconflict-affectedcountries.Furthermore,someoftheassumptionsandfallaciesdiscussedabovehavelikelyledthefieldtolookatthewrongfactorswhenattemptingtoassessefficacy(forexample,capacitybuilding,numberoftrainingsconducted,andnumberofconflictandDoNoHarmassessmentsimplemented).Shouldwebetryingtocapturedifferenttypesofdata?Asoneintervieweenoted,“Ifyoumustprovetoafunderthatyouachievedcertaingoals,you’relikelytopickspecific,achievablegoals–whichunderminestheworkofsystemsthinkersandvisionarieswhoseefundamentalsocialchangeinbigpictureterms.”

Despiteanumberofcritiquesrelatedtomonitoring,evaluation,andlearning(MEL)andthefocusonquantifyingaspectsofprogramsthatareultimatelymeaningless(forexample,numberofparticipants),therearefewwell-establishedandacceptedmetricsforprocesses.Howdoyouevaluatecommunity-ledwork?Howdoyoumeasureprogressrelatedtocollaborativecommunity

action?Oneoftheorganizationsinterviewedfortheresearch,SparkMicrogrants,istryingtoaddressthis:

Weneedtoinvestmoreintheideathatcommunitiesregularlymeetingtogethertoestablishgoalsareoutcomesinthemselves.It’stakenalotofworkwithdonorstogetthemtobuyintothisidea.Ifyouarejustmeasuringproject-relatedoutputsoroutcomes,youmightmisssomethingthatcommunitiesactuallydeemahigherpriority…Inordertounderstandthesepriorities,weneedtoinvestinandtrustcommunity-ledevaluationprocesses.Thisrequiresstartingsmall,lotsoftimewithcommunitiesandvisitingprograms.Eachprogramisdifferentandsounderstandingprogressandimpactisdifferentthoughtheprocessoffacilitatingcommunitydialoguetoarticulateimpactsmightbethesameandreplicable.Forexample,intheCongo,thecommunity’sgoalsarerelatedtoresolvingconflictincommunities.InGhana,theyareaboutbuildingresiliencetoextractiveindustries.Thesehavedifferentoutputsandoutcomesbutagain,theprocesstoworkwithcommunitiestoidentifythemisthesame.

Onefunder,aspartoftheirevaluation,commissionedanetwork mapmeasuringthedensityofthenetworktheyhavefunded,andhowpeopleareworkingtogether–thedenserthenetwork,thestrongeritis.The



funderunderscoredthatthemethodologyislargelydependentoncollectingstoriesfrompartners,notonanyquantitativemetric:“Wehavethissickness,thisobsessionwithmetrics–thethingaboutsocialmovementsandsocialchangeisthatitisnevergoingtohappeninalinearfashion.Thatdoesn’tmeanyoushouldn’tbelookingatquantitativenumbers–butfundersshouldactuallybemoreconcernedwiththeoverallmomentumandleadershipandenergyinamovement.Youshouldbecloseenoughtothegroundtowitnessthis,andhowthattransformsintocultureandpolicyshifts.”Formostfunders,thisisnotreflectedintheircurrentmonitoringandreportingprocesses.

Itisclearthattheentireinternationaldevelopmentecosystemneedstothinkdifferentlyaboutimpact.Asoneintervieweestated:

“Donors need to [measure impact by] things other than the amount of money a donor gives away or the amount of money a partner can program – the number of grants given. They need to understand how to build dignity and trust and allow community members to decide on their own needs. What changes when these systems and structures are allowed to develop power and assets through locally led grantmaking – how does that change the efficacy of implementing projects or achieving development or social justice goals?”

Similarly,anotherintervieweeargued,

“The ROI should be: Did we help communities to be more engaged and better able to solve their own problems? Not, did they create five reports and two policy training manuals and hold x number of trainings.”

Itisalsonecessarytothinklongtermaboutimpact.Asonefunderobserved,“Impactis

oftenclearestatthegenerationallevel.Theimpactofthewomen’srightsmovementaroundtheworldisveryclear,wecantalkaboutitinbothapolicycontext–therearenow40countrieswheredomesticviolenceisillegal–andinourlivedexperienceinourfamiliesinthewaysourgrandmothers’livesaredifferentthanours.”Anotherclaimed,“Evenifweknewhowtomeasure[intangibleprocesses],donortime-framesjustdon’tlendthemselvestoimpact.Socialcapitalgetsdiminishedandworndowninconflictsettingsandsoyouneedtomakethesenetworksmoreresilient–yet,thisisveryintangible.Wearerecognizingthingslikegrievance–thatarealsointangible–areveryimportant.”

“Impact”hasbeenparticularlyhardforthepeacebuildingfieldtodemonstrate.Howexactlycanthebenefitsofpeacebuildingorconflictpreventionbedescribedinconcreteandsuccinctterms?WithregardtotheconflictinNorthernIreland,onefunderobserved,“…evenwhenthingsweren’tgoingwellonmacrolevel,thepeoplewerestillmakingcontactacrossthedivide.Howdoyoumeasurethenumberofsectarianassassinationsprevented?Often[understandingtheseissuesmeaningfully]comesdowntocasestudiesandqualitativedata.”

Thereisameasurementproblemwithbigchallengeslike“peace.”Asoneintervieweenoted,“[peace]ismadeupofsmalleroutcomes.Howdoyousubstantivelylinkeducationaloutcomestopeace?Youcanbreakdownwhatprojectsarebeingfundedundertherubricofpeacebuilding,buthowdoyouaggregatethattoahugeconceptlikepeace–unlessyouunderstandhowtomeasure/achieverobustoutcomes,youdon’thaveanythingtosell.Nofunderorinvestorisgoingtoinvestinanything.”Another,meanwhile,said:



“Comparing number of lives lost in one place that did not have peacebuilding versus another place that did is hard because it feels like you are quantifying lives to prove your point. However, at this point, especially to donors who cannot see the day to day impact, this is one way that we can discuss how our work gets results. Similarly to public health…their impact goes beyond just vaccinating people, but they are able to get funding based on the number of kids they vaccinate or the number of health workers they train. Numbers are important, but peacebuilding has the ability to also bring stories to the forefront which oftentimes catch donors’ eyes better. However, I don’t like quantifying lives so I would like to find a better solution – also, INGOs can be helpful here around M&E [monitoring and evaluation] with providing different tools to measure things.”

Articulatingimpactremainsaquandaryforpeaceandconflictpractitioners.Weneedtobetterunderstand,measure,andsupportprocessesrelatedtopeacebuilding,aswellas

therolelocalactorscanplayinarticulatingtheirbenefits.Oneofthethemesthatemergedfromtheresearchwasaneedtofocusworkaroundrelationshipsratherthanoutcomes.Theauthorofthisreporthasarguedelsewherethatthepeacebuildingcommunitycouldlearnfromotherdisciplinesthathavehadtoprovecounterfactualsandarefocusedonpreventingcrises,suchaspublichealththreats,climatechange,orfamine.Whilesocialprocessesareofcoursecomplicatedanddifficulttomeasure,thefieldneedstobebetteratdistillingresultsintokeymessagestofunders:“Publichealthalsoinvolvescomplexprocesses,includinggettingpeopletochangeandadoptnewbehaviors,andyetthefieldhasmanagedtosellpowerfulmessagesthatareeasilyunderstandableaboutwhytheirworkislifesaving.Whatisthe‘diseaseeradication’equivalentofthepeacebuildingworld?Theabilitytotranslatethesemessagesclearlyarecentraltoattractingmorefunding,privatesectororotherwise.”

Conclusions

Thethemesabovesummarizesomeofthelongstandingchallengesaffectingthecurrentfundingparadigm.Alsoreferencedareseveralpositiveexamplesoffundersandorganizationsattemptingtocreatenewnormsaroundunderstandingimpactandperceptionsoflocalcapacity.Furthermore,thefindingsrevealedinthissectionunderscorewhythestrategiesandfundingapproachesproposedelsewhereinthisreportareneeded.Evenso,thequestionremains:Whatwillittakefortheseeffortstobecomethenorminhowtheinternationalcommunitysupportslocalorganizations?

Author’s note

This endeavor evolved from my two decades of practical experience working with grassroots

NGOs in fragile, violence, and conflict-affected countries. I also spent five-and-a-half years under both Obama Administrations managing a significant portfolio of donor funds in the Bureau of Democracy, Human Rights and Labor at the US Department of State (DoS) to support civil society organizations working in violence-affected countries. I watched these organizations try to piece together funding – or worse, have to fire staff and shut down programs – because the international community had decided that Sri Lanka and not Kosovo was the priority, or that funding police training was more important than the psychosocial effects of violence. Many people – my team at the DoS included – constantly scramble to address these funding gaps, but the system is wearing and prohibitive no matter where you sit.



These experiences left me determined to figure out how to better support local actors working in some of the world’s most difficult and dangerous situations. Therefore, I left the DoS intent on helping dedicated organizations across the Global South focus on their actual core work of leading social change. The reality such organizations are faced with – should they choose to participate in the international funding industry – is that they must spend the majority of their time appealing to donors and puzzling together grants for siloed projects in order to fund programs they (though perhaps not donors) see as priorities. In my hopes of addressing these obstacles, I spent a productive year as a visiting scholar at the Center on International Cooperation at NYU, focusing on developing and utilizing the tools of innovative finance to sustain peace.

I am a social psychologist by training, though my search for new revenue streams and strategies led me, tentatively, into the world of finance. As I got further into this work, I realized the challenges are not only about money and the tools that generate new money. While more resources for local actors are needed in an absolute sense, money is really a proxy for our values and priorities and one piece – a big piece – that drives the current power dynamic between the international community and local organizations.

I welcome the opportunity to discuss any of the ideas in this paper further and can be reached at: [email protected].


Annex: List of Research Participants/Interviewees

Annex: List of Research Participants/Interviewees

• AmericanJewishWorldService

• Children’sRightsandViolencePreventionFund

• CommunityFoundationofNorthernIreland

• ComptonFoundation

• GlobalPartnershipforEducation

• GrassrootsClimateSolutionFund/BlueHeart

• GlobalFundforCommunityFoundations

• FundforGlobalHumanRights(2)

• TheFoundationCenter(nowCandide)

• ICAN–InnovativePeaceFund

• NexusFund

• PeaceDirect(2)

• QuantifiedVentures

• RobertCarrFoundation

• SparkMicrogrants

• ThousandCurrents

• ToPL

• UrgentActionFundforWomen

• VillageCapital

• WellspringAdvisors

• Oneanonymousdonor

• Twoprivatephilanthropicconsultants


About the Author

About the Author

Dr.RivaKantowitz’sworkfocusesonsupportingresilientandthrivingcommunitiesinconflict-affectedcountries.Formorethan20years,shehasworkedtopromotehumanrights,preventviolenceandprovidesupporttocivilsocietyandgrassrootseffortsinfragileanddevelopingenvironmentsaroundtheworld.Shenowfocusesonstrengtheningtheeffectivenessofdonorsandotherinternationalactorsthroughpartnershipsandinnovativeapproachestofunding.Inadditiontoindependentconsultingwithfundersonthesetopics,sheiscurrentlyaSeniorAdvisorattheDagHammarskjoldFoundation,aFellowattheU.S.HolocaustMemorialMuseumandamemberoftheU.N.ExpertAdvisoryBoardonChildrenonArmed

Conflict.Previously,shefoundedandledateamattheU.S.DepartmentofStatethatprovidesstrategicdirectionandoversighttoaglobalinvestmentportfoliotopromotehumanrightsinconflict-affectedcountries.Sheco-directedSabanciUniversity’sPrograminConflictAnalysisandhasbeenafacultymemberattheElliottSchoolofInternationalAffairsatGeorgeWashingtonUniversityandtheCenterforMigrationandRefugeeStudiesattheAmericanUniversityinCairo.Dr.KantowitzearnedaPh.D.fromColumbiaUniversityinSocial-OrganizationalPsychology(2006).

ReadtheAuthor’snoteathttps://www.peacedirect.org/rivakantowitz/

About the author

RivaKantowitz,Ph.D.,isanindependentconsultantfocusedonstrengtheningtheeffectivenessofdonorsandotherinternationalactorsviapartnershipsandinnovativeapproachestofunding.ShealsoiscurrentlyaSeniorAdvisorattheDagHammarskjoldFoundation,aFellowattheU.S.HolocaustMemorialMuseumandamemberoftheU.N.ExpertAdvisoryBoardonChildrenonArmedConflict.Previously,shefoundedandledateamattheU.S.DepartmentofStatethatmanagesaglobalinvestmentportfoliotopromotehumanrightsinconflict-affectedcountries.

Formoreinformationabouttheauthor,gotowww.peacedirect.org/rivakantowitz/

About Peace Direct

PeaceDirectisaninternationalnonprofitdedicatedtoworkingwithlocalcommunitiestostopviolenceandbuildlong-termpeace.Webelievethatlocalpeoplehavethepowertofindtheirownsolutionstoconflict.

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