Innovative Giving Models

While everyone's talking about the funding crisis, forward-leaning NGO leaders are quietly experimenting with radically different approaches to sustainability. These aren't theoretical frameworks—they're real models being tested by organizations who refuse to wait for the old system to fix itself. Here are the four distinct models, each offering a different approach to building resilience in the post-BIG-aid era: 🤝 The Cooperative Model Inspired by Jacqueline Asiimwe Mwesige's NAFASI approach The Vision: Pool resources with peer organizations to create shared financial independence. Start with 3-5 partner organizations, each contributing modest monthly amounts to build collective resilience and reduce donor dependency. Key Operational Capability: Financial pooling + shared governance systems. Requires robust mechanisms for collective decision-making about resource allocation and transparent financial management across organizations. 🕸️ The Network Model Drawing from Kim Kucinskas's ecosystem approach The Vision: Transform from individual organization to network weaver. Focus on connecting, convening, and catalyzing rather than direct implementation. Measure success by ecosystem health, not program outputs. Key Operational Capability: Relationship mapping and network facilitation skills. Need to excel at identifying key stakeholders and designing convenings that create lasting connections. 💰 The Hybrid Model Based on Jenny Hodgson's blended approach The Vision: Combine "warm money" from communities with "cold money" from traditional donors. Build local donor bases while maintaining strategic international partnerships, creating co-owned, co-funded initiatives. Key Operational Capability: Dual fundraising and relationship management systems. Separate but integrated approaches for cultivating community donors and institutional funders, with different strategies for each. ✊ The Movement Model Following Jenna Thoretz's solidarity approach The Vision: Dissolve artificial boundaries between INGOs and local NGOs. Operate as one global civil society, sharing resources and power across geographic lines. Key Operational Capability: Cross-border collaboration and resource sharing platforms. Your organization needs systems for coordinating with international partners and sharing resources fluidly across boundaries. Each model requires different organizational DNA, leadership capabilities, and risk tolerance. Before choosing your path: ✅ Assess your organizational strengths: Which capabilities do you already possess? ✅ Evaluate your stakeholder readiness: Are your board, staff, and communities prepared for this shift? ✅ Consider your context: What regulatory, cultural, and competitive factors will impact your success? ✅ Plan your transition: How will you manage the operational and cultural changes required? Read the full essay series and dive deeper into these approaches. https://lnkd.in/gm_PSfV6

Philanthropy is quietly rewriting its own playbook. And the new generation isn’t content to just fund change - they also want to co-create it. At the recent United Nations General Assembly and Concordia gatherings, a clear pattern emerged: collaboration and system innovation now sit at the center of giving. Foundations, endowments, and family offices are moving from transactional donations to participatory problem-solving. Some numbers tell the story: 💡 According to the Alliance magazine 2025 Global Philanthropy Report, 73% of next-gen donors now prioritize partnerships that “shift power to communities.” 🌍 MENA foundations like Abdulla Al Ghurair Foundation and Sawiris Foundation for Social Development are experimenting with philanthropy-as-platform models — blending capital, data, and networks to co-design solutions. 🧠 And globally, initiatives like Co-Impact and Lever for Change are proof that pooled, collaborative funds can drive systems-level results far faster than isolated grants. This is the new frontier: from cheque-writing to challenge-crafting. Real impact happens when philanthropists act as architects - convening coalitions, aligning incentives, and creating shared accountability. It’s a shift I’ve seen firsthand in my advisory work - when funders move from giving to guiding, entire ecosystems unlock. 💭 Happy to dive deeper if you’re rethinking how your foundation or endowment collaborates - its been fun and exciting to co-create these models with bold thinkers wanting to shift global paradigms in giving.

In today’s rapidly evolving social landscape, philanthropic organizations are increasingly called to be more than funders—they must become strategic innovators. One powerful way to do this is by curating innovation portfolios that balance investments in local direct service models with systems change initiatives. By applying principles from the business innovation cycle, philanthropy can unlock new pathways for scalable, sustainable impact. 1. Ideation & Discovery: Listening to the Ground While Envisioning the Sky Local organizations, like small and medium-sized businesses, operate close to the communities they serve. Their proximity allows them to identify emerging needs and experiment with grassroots solutions. Philanthropy can harness this by funding community-led ideation and supporting collaborative R&D with systems thinkers and policy innovators. 2. Development & Prototyping: Bridging Practice and Policy Local service providers often have deep expertise in delivering interventions that work in real-world settings. These models can serve as prototypes for broader systems change. Philanthropy can support pilot programs and facilitate knowledge exchange between practitioners and policy advocates. 3. Testing & Validation: Learning from the Field Direct service models offer a real-world testing ground for innovation. Their proximity to end-users enables authentic feedback loops that inform systems-level strategies. Philanthropic organizations should invest in evaluation frameworks that capture both local impact and broader relevance. 4. Commercialization: Scaling What Works Once validated, local models can be scaled through strategic partnerships and expanded channels. Philanthropy can play a catalytic role by connecting grassroots innovators with institutions, government agencies, or national networks to amplify impact. 5. Scaling & Optimization: Leveraging Innovation for Efficiency Philanthropic organizations can help scale local models by investing in process innovation and technology. This includes funding digital tools, training programs, or infrastructure that enables broader adoption without compromising quality. 6. Continuous Improvement: Creating a Learning Ecosystem True innovation is never static. Philanthropy must foster continuous improvement by supporting feedback loops and learning ecosystems. This includes convening stakeholders, funding learning communities, and investing in platforms that share insights across sectors. 𝐓𝐡𝐞 𝐏𝐨𝐰𝐞𝐫 𝐨𝐟 𝐚 𝐁𝐚𝐥𝐚𝐧𝐜𝐞𝐝 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 By intentionally balancing investments in local direct service models and systems change strategies, philanthropic organizations can create innovation portfolios that are both grounded and visionary. This approach drives impact at multiple levels while building resilience, adaptability, and long-term value for the communities they serve.

Saw this unique & innovative approach to the transfer of wealth in the U.S. last week. The Alliance Healthcare Foundation (AHF) based in San Diego is definitely challenging some thinking around philanthropic giving by transferring $7.5 million - roughly 10% of its endowment - to the Imperial Valley Wellness Foundation (IVWF). This innovative move shifts power from traditional oversight to local control, allowing the community to manage these funds in perpetuity. It could also be an option for sunsetting foundations in the future too. AHF has been investing in IVWF since 2017, and this $7.5 million contribution takes their collaboration to the next level. IVWF will now manage the funds to address pressing needs in Imperial Valley, a region facing extreme poverty, food insecurity, and poor air quality. By entrusting IVWF with this financial responsibility, AHF ensures the community has the autonomy to allocate resources where they’re most needed. This approach can be particularly impactful for First Nations communities in Australia, where access to philanthropy is an issue and community-controlled capital remains scarce. Moves like AHF’s could be the blueprint to help seed new Aboriginal Community Controlled Organizations (ACCOs) and new Community Foundations and seems an effective way of addressing local needs and ensuring long-term sustainability and impact.

The Blackbaud Institute report says that 84% of Gen Z support a cause or nonprofit, but not in the way you might expect. They’re not waiting for a year-end gala or a tax write-off. They’re: → Moving money on Venmo. → Organizing fundraisers on TikTok & Instagram. → Sharing bail funds on Instagram stories. In fact, 50% of Gen Z share causes or fundraisers at least once a week. And they’re three times more likely than Boomers to publicly advocate for the organizations they support. It's not just a new style of giving; it's a power shift. They’re turning away from the donor class model. And leaning into community-led support, impact investing, and mutual aid. → No gatekeeping. → No slow-moving boards. → Just action—fast, visible, and values-aligned. So I’ve been wondering… ↳ What if Millennials and Gen Z don’t want to be philanthropists at all? ↳ What if they’re not looking to tweak the system but to build an entirely different one? One where generosity doesn’t require status. And the impact doesn’t wait for permission. Do we see the end of the donor class or the start of a new giving economy?

After nearly 3 years in the Impact space, in this article I attempt to unpack the core hypotheses driving today’s new age Philanthropic trends. You will be amazed to know how much modern giving looks and feels like Venture Capital. Due-diligence decks, runway forecasts, even “follow-on” rounds, just swap founders for frontline NGOs/Implementation Agencies and the workflow is the same. The key shift is in the yardstick: investors talk ROI, while donors chase SROI (Social Return On Investment) that counts lives changed, not just dollars back. Inside, Hardik and I unpack how blended finance, cost-per-impact models, and AI tools are letting us track that SROI with start-up precision. Give it a read and let us know where you see capital and compassion meeting next.

"From Charity to Strategy: Is Your Organization Ready for CSR 2.0?" 1️⃣ The Evolution of Corporate Social Responsibility The corporate giving landscape is transforming! Gone are the days when CSR meant writing a cheque and walking away. Today's strategic CSR is about creating SHARED VALUE where business objectives align with meaningful social impact. Companies seeking authentic partnerships are looking for: ✅ Impact measurement frameworks that demonstrate ROI ✅ Long-term relationships vs. one-off donations ✅ Integration with core business competencies Is your organization positioned as a strategic partner or still pitching for charity? The difference will determine your funding success in 2025! 2️⃣ Grant Writing: What Funders ACTUALLY Want After reviewing 50+ successful grant applications last quarter, I've noticed a critical shift in what wins funding: The most successful proposals aren't just well-written—they're strategically designed to address the funder's SPECIFIC impact goals. Three elements that secured funding every time: ✅ Clear theory of change with measurable outcomes ✅ Innovative, scalable implementation approach ✅ Transparent reporting mechanisms Are you still using generic templates or crafting funder-specific proposals? The funding landscape rewards customization! 3️⃣ The ESG-CSR Connection: What Every Nonprofit Needs to Understand ESG metrics are reshaping corporate giving priorities, creating both challenges AND opportunities for the social sector. Smart nonprofits are aligning their impact models with corporate ESG frameworks: ✅ Environmental metrics that quantify sustainability impact ✅ Social indicators that demonstrate community transformation ✅ Governance structures that ensure accountability Is your organization speaking the language of ESG? Those who adapt will unlock new corporate funding streams in today's metrics-driven landscape. 4️⃣ Data Visualization: The Secret Weapon of Successful Fundraising The most compelling grant applications don't just tell—they SHOW impact through strategic data visualization. When we redesigned our impact reporting with visual dashboards: ✅ Donor engagement increased 47% ✅ Renewal rates jumped 38% ✅ Average grant size grew by 22% Are your impact stories buried in text or brought to life through visual data storytelling? The difference can transform your funding outcomes! Follow Bhagyashree Lodha for more such insights

Philanthropy is at a crossroads. As donor priorities shift and aid declines, African CSOs must rethink funding models not just to survive, but to thrive. The F20 Action Paper (Jan 2025) makes a bold call: philanthropy must move beyond charity and become a force for long-term, flexible funding, community-led decision-making, and systemic change. But are we ready for this shift? The Access Dilemma Too often, the very organisations best placed to drive change, grassroots groups embedded in communities, struggle to access finance. Complex applications, rigid reporting, and opaque decision-making exclude them from resources that could transform lives. If philanthropy is serious about equity, it must dismantle these barriers and reimagine finance through a justice-driven lens. A New Era of Power and Influence Traditional funding models are built on outdated notions of development, where resources flow from the Global North to the Global South, reinforcing dependency. What if we flipped the script? What if philanthropy invested in locally led finance models, community endowments, and alternative funding mechanisms that ensured long-term sustainability? The G20 Opportunity With South Africa’s G20 Presidency in 2025, there is a rare opportunity to reshape global finance policies with African voices at the centre. This is not just about being present at the table, it is about setting the agenda. Philanthropy must play an active role in ensuring discussions on financial inclusion, climate justice, and development finance prioritise African-led solutions rather than externally imposed frameworks. From Donors to Disruptors Philanthropy has a choice: remain within its comfort zone of grant-making or embrace a more radical role as a convener, investor, and advocate for structural change. This means: Shifting power—funding must be led by those closest to the challenges, not dictated by distant institutions. Redesigning finance—alternative models such as social impact investing, pooled funds, and participatory grant-making must take centre stage. Holding policymakers accountable—philanthropy can push for financial policies that prioritise equity over profit. This moment demands courage, innovation, and a willingness to challenge the status quo. Will philanthropy rise to the challenge? #Philanthropy #FinanceJustice #G20Africa #ShiftThePower Read the full research by Reon van der Merwe supported by Katrin Harvey and Larissa B.: ow.ly/LZQC50VcFGq West Africa Civil Society Institute (WACSI) Re-imagining the INGO (RINGO) African Youth Philanthropy Network (AYPN) African Philanthropy Forum African Philanthropy Network Wits Business School

From Stock Picks to Investment Management—And What Philanthropy Can Learn From It Not too long ago, most financial advisors were essentially stockbrokers. Investment management was largely non-discretionary—advisors made recommendations, but clients had to approve every trade. It was a commission-driven world focused on transactions, not strategy. Portfolios were built one sale at a time, and value was measured more by stock picks than long-term planning. Today, the picture couldn’t be more different. Discretionary management—where advisors make investment decisions on behalf of clients—is now the norm. Clients expect more than trade ideas; they want proactive, fiduciary-based management and a trusted partner who stewards their long-term goals with independence and expertise. Why the shift? Because it works. Investors didn’t give up control out of sentiment—they did it because discretion delivers better results. It’s more efficient, more responsive, and ultimately more effective at building wealth.    The evolution from stock picker to portfolio management has a lesson for the world of philanthropy. In modern giving, many donors still operate like old-school investors—dictating where and how every dollar is spent. They fund specific programs, define outcomes, demonize overhead expenses, and require reporting that can often strain nonprofit resources. It’s a non-discretionary model in philanthropic form. Discretionary giving—providing capital to a high-impact organization and letting them allocate resources where they’re most needed—mirrors the evolution of smart investing. It reflects confidence in the leadership, strategy, and agility of the nonprofit. It creates space for innovation and resilience. And it recognizes that those closest to the work are best positioned to manage the capital. Just as investors realized the benefits of handing over discretion to an investment professional, so too can donors—by moving from restricted giving to full discretionary, unrestricted philanthropy. From stock pickers to stewards. From program funders to partners. The shift is long overdue—and the impact could be just as transformative.

🧩#𝗦𝗵𝗶𝗳𝘁𝗧𝘂𝗲𝘀𝗱𝗮𝘆𝘀: 𝗖𝗮𝗻 𝘄𝗲 𝗳𝗶𝗻𝗮𝗹𝗹𝘆 𝗯𝘂𝗶𝗹𝗱 𝗮 (𝗵𝘂𝗺𝗮𝗻𝗶𝘁𝗮𝗿𝗶𝗮𝗻) 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝘀𝘆𝘀𝘁𝗲𝗺 𝘁𝗵𝗮𝘁 𝘄𝗼𝗿𝗸𝘀 𝗳𝗼𝗿 𝗰𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝗶𝗲𝘀? The ongoing shifts in the humanitarian funding landscape finally force us to fundamentally reimagine funding approaches . 𝗜𝘁 𝗶𝘀 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗯𝗿𝗲𝗮𝗸 𝗼𝘂𝘁 𝗼𝗳 𝗮𝗻 𝗼𝘂𝘁𝗱𝗮𝘁𝗲𝗱 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗽𝗹𝗮𝘆𝗯𝗼𝗼𝗸. We need new, practical models that unlock genuine leadership for community, local, and national actors. 𝗥𝗲𝗮𝗱𝘆 𝘁𝗼 𝗿𝗲𝘁𝗵𝗶𝗻𝗸 𝗳𝘂𝗻𝗱𝗶𝗻𝗴? This post features part 2/4 of our mini-series unpacking 𝟮𝟬 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗺𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺𝘀 designed to make that shift real. 👉𝗧𝗵𝗶𝘀 𝘄𝗲𝗲𝗸, 𝘄𝗲 𝗲𝘅𝗽𝗹𝗼𝗿𝗲𝘀 𝟱 𝗮𝗱𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵𝗲𝘀 𝘁𝗵𝗮𝘁 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽 𝗹𝗼𝗰𝗮𝗹 𝗡𝗚𝗢𝘀 𝗮𝗻𝗱 𝗖𝗕𝗢𝘀 𝗴𝗮𝗶𝗻 𝗺𝗼𝗿𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝗰𝗲:  ✔️Forecast-based financing ✔️Insurance-based models ✔️Multi-layered partnerships with large companies (ESG + commercial strategy) ✔️Partnerships between NGOs/CBOs & startups ✔️Income-generating models for NGOs/CBOs 👉𝗡𝗲𝘅𝘁 𝘄𝗲𝗲𝗸: Trust based funding, Participatory grant-making, Crowdfunding & micro-giving, Local government-community budgeting, Consortia models for CBOs. ❓𝙒𝙝𝙞𝙘𝙝 𝙛𝙪𝙣𝙙𝙞𝙣𝙜 𝙢𝙤𝙙𝙚𝙡 𝙙𝙤 𝙮𝙤𝙪 𝙩𝙝𝙞𝙣𝙠 𝙘𝙤𝙪𝙡𝙙 𝙩𝙧𝙪𝙡𝙮 𝙘𝙝𝙖𝙣𝙜𝙚 𝙩𝙝𝙚 𝙜𝙖𝙢𝙚? 𝙒𝙝𝙖𝙩 𝙣𝙚𝙬 𝙛𝙪𝙣𝙙𝙞𝙣𝙜 𝙢𝙤𝙙𝙚𝙡𝙨 𝙘𝙤𝙪𝙡𝙙 𝙗𝙧𝙚𝙖𝙠 𝙩𝙝𝙚 𝙘𝙮𝙘𝙡𝙚 𝙤𝙛 𝙙𝙚𝙥𝙚𝙣𝙙𝙚𝙣𝙘𝙮? —------------------------------------------------------ 𝘈𝘵 Mindset-PCS (People-Centered Solutions), 𝘸𝘦 𝘩𝘢𝘷𝘦 𝘣𝘦𝘦𝘯 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩𝘪𝘯𝘨, 𝘱𝘪𝘭𝘰𝘵𝘪𝘯𝘨, 𝘴𝘩𝘢𝘳𝘪𝘯𝘨 𝘱𝘳𝘢𝘤𝘵𝘪𝘤𝘦𝘴, 𝘢𝘯𝘥 𝘢𝘥𝘷𝘰𝘤𝘢𝘵𝘪𝘯𝘨 𝘧𝘰𝘳 𝘵𝘩𝘦 𝘸𝘪𝘥𝘦𝘳 𝘢𝘥𝘰𝘱𝘵𝘪𝘰𝘯 𝘰𝘧 𝘪𝘯𝘯𝘰𝘷𝘢𝘵𝘪𝘷𝘦 𝘧𝘶𝘯𝘥𝘪𝘯𝘨 𝘮𝘦𝘤𝘩𝘢𝘯𝘪𝘴𝘮𝘴 𝘧𝘰𝘳 𝘕𝘎𝘖𝘴 𝘢𝘯𝘥 𝘰𝘵𝘩𝘦𝘳 𝘷𝘢𝘭𝘶𝘦-𝘥𝘳𝘪𝘷𝘦𝘯 𝘢𝘤𝘵𝘰𝘳𝘴 𝘴𝘪𝘯𝘤𝘦 𝘰𝘶𝘳 𝘤𝘳𝘦𝘢𝘵𝘪𝘰𝘯 𝘪𝘯 2019. 𝘐𝘯𝘯𝘰𝘷𝘢𝘵𝘪𝘷𝘦 𝘧𝘶𝘯𝘥𝘪𝘯𝘨 𝘮𝘦𝘤𝘩𝘢𝘯𝘪𝘴𝘮𝘴 𝘪𝘴 𝘵𝘩𝘦 𝘧𝘰𝘶𝘳𝘵𝘩 𝘤𝘰𝘳𝘦 𝘱𝘪𝘭𝘭𝘢𝘳 𝘰𝘧 𝘰𝘶𝘳 𝘸𝘰𝘳𝘬. 𝘍𝘰𝘳 𝘮𝘰𝘳𝘦 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯, 𝘷𝘪𝘴𝘪𝘵 𝘰𝘶𝘳 𝘸𝘦𝘣𝘴𝘪𝘵𝘦. #funding #innovation #innovativefunding #humanitarian #sdgs #systemshift