Lessons about Funding Plus

How funders can add value to grant-making by going beyond the money.

What is funding plus?

We use the term ‘funding plus’ to describe ‘any activity which is additional to a grant and the grant-making process’.

Other terms in use include ‘grants plus’ and ‘funder plus’.

Activities

Most funding plus activity is described as ‘capacity building’ or ‘organisational development’ (training, consultancy, support) aimed at developing the skills of individual funded organisations. Some funders work to achieve influence and change through other ‘plus’ activities, such as convening, networking or brokerage.

Benefits for charities

  • Improved confidence, stability and performance.
  • Greater influence and impact by using new approaches and developing new partnerships: ‘Funding plus introduced us to a range of opportunities we would not otherwise have had’.
  • Stronger and more open relationships with funders: ‘I felt over the six years that the funder was proud of us. If someone believes in you, then you rise up to that’.

Benefits for foundations

  • Improvements to the strength and stability of funded organisations.
  • The opportunity to develop more trusting and honest relationships: ‘We take time to understand what organisations need before embarking on the relationship. It gets the organisation to think about where it’s going and it lets us understand where we can add value’.
  • Tangible changes to policy practice through more joined-up and collaborative working.

Should all funders go beyond the money?

For a small number of foundations, the distinction between ‘funding’ and ‘plus’ is consciously and deliberately blurred: going beyond the money may be automatic and is an expression of values and beliefs. For others, funding plus might just not be the right thing. While there’s no shame in that, we do encourage all funders to engage in debate and discussion about the best and fullest use of their assets to support funded organisations.

Making funding plus work

Align purpose, focus and method

Align purpose, focus and method: To inform thinking about the focus and method of additional support, funders need to think about purpose. Is it to strengthen individuals, projects and organisations, or a combination of all three?

Know and understand the work

Know and understand the work: Funding plus works better when funders understand charities’ field, context, circumstances and concerns – this helps to ensure a good fit between the organisation and the support.

Avoid prescriptive and standardised approaches

Avoid prescriptive and standardised approaches: Bespoke approaches allow charities to have ownership of support and outcomes. Organisations benefit most from flexible, tailored support that they can access when needed.

Choose the right support provider

Choose the right support provider: Funding plus falters and fails if the support provider is inconsistent; unreliable; too busy; or out of their depth. Funding plus works best when there is a real match between the skills of the support provider and the charity’s needs, and the support is enthusiastic; committed; motivational; and non-judgemental.

Prioritise support for forward thinking

Prioritise support for forward thinking: It may be most helpful to focus support on forward thinking and planning. Organisations that are able to adapt and develop are those which review and renew their mission in a changing environment.

Be mindful of power

Be mindful of power: Foundations need to pay serious attention to some of the ethical dilemmas posed by extending involvement in funded organisations beyond the provision of funding. In particular, what is your mandate? What are the limitations of your role? How best to use your power for good ?

Be ready and willing

Be ready and willing: For additional support to be both useful and usable, charities need to be ready and willing to engage. This includes:

  • Involving everyone – staff and trustees – so that the support reaches into the heart of the organisation
  • The ability and mindset to effect change
  • Capacity for implementation

Our insights are drawn from work with:

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With thanks to Paul Coleman/Eden Project Communities for the photo used at the top of this page.

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