For decades, philanthropy has operated on a “top-down” model — where funders decide the agenda, dictate outcomes, and hold grantees accountable through heavy reporting and evaluation. While well-intentioned, this approach has significant downsides.
The issues with traditional funding:
- Power imbalance: Funders hold the purse strings, which often leads to decision-making without meaningful input from communities.
- Rigid requirements: Detailed grant applications and frequent reporting divert precious staff time away from frontline work.
- Short-term focus: Grants tied to specific projects and short cycles make it difficult to plan for the long-term and address root causes.
- One-size-fits-all metrics: Standardized reporting doesn’t always capture community impact or complex social changes.
These challenges can reinforce systemic inequities and limit the potential of grassroots groups to create lasting change.
What’s the alternative?
Better Funding champions a new paradigm that centers trust, equity, and community leadership. This means:
- Listening to community voices: Decisions should be informed by those with lived experience.
- Flexible, multi-year funding: Allow organizations to build capacity and respond to changing conditions.
- Partnership over transaction: Funders and grantees collaborate as equals, sharing risks and successes.
Changing the narrative:
By shifting from a compliance mindset to one of trust, philanthropy can unlock creativity, resilience, and sustainable impact. Funders who embrace this approach often find deeper connections and better outcomes.
At Better Funding, we’re creating resources and sharing stories from across the sector to inspire more funders and organizations to join this movement. Together, we can create a funding ecosystem that supports real transformation.
