Funding for Real Change (FRC) is a new initiative to provide resources to reimagine giving and ‘normalise good grantmaking practices’ in the wake of the Covid-19 pandemic. A joint effort by Ariadne and EDGE Funders Alliance, it aims to help funders strengthen organisations in the long run through more flexible and trusting grantmaking.

During the Covid-19 pandemic, over 60 per cent of foundations loosened their restrictions and lightened reporting for grants. This good grantmaking practice has demonstrated how giving can be more flexible and equitable helping civil society organisations and social movements access resources without being overly constrained by donor requirements.

The project offers a wide variety of practices and resources designed to support different giving methods which include:

• Indirect cost recovery
• All-in project support
• Flexible programmatic funding
• Targeted growth support
• Flexible support
• Multi-year flexible funding

This spectrum of practices and resources recognises that there isn’t a single call to action that fits for all funders globally, but through commitment, philanthropy can move towards full, flexible funding.

‘The markets have been kind to philanthropy… this should be the moment to translate that into multi-year funding… three years and up ought to be the target. Five years is ideal’ noted Dr Robert Ross, President, The California Endowment.

The data on the FRC website was created and developed by Humentum and MilwayPLUS, facilitated by BDO FMA, and resourced by Funders for Real Cost, Real Change Collaborative and the Ford Foundation.

Ariadne is a European peer-to-peer network of more than 600 funders and philanthropists who support social change and human rights.

EDGE Funders organises within philanthropy to raise awareness and deepen understanding of the interconnected nature of the social, economic and ecological crises threatening our common future.

For more see the Funders for Real Change website.

Simon Hungin is a freelance writer that supports Alliance magazine.