Why NGOs have to be smart about future funding plans

Grant-making programmes have started to witness gradual but noticeable changes in terms of giving funds to NGOs for development work.

The conventional method of giving short-term grants for quick implementation is getting replaced by the introduction of creative partnerships between donors and NGOs to create a long-term and meaningful impact.

The conventional method of grant-making involves processes where grant announcements were made, project proposals were requested (or unsolicited proposals were received) and grants were sanctioned with little or no joint participation in bringing about the desired social impact.

Grant-making foundations are mostly overwhelmed in this type of scenario. They are overburdened with grant requests from NGOs all around the world, which makes them spend most of their time in responding to unsolicited proposal queries rather than building upon the quality and effectiveness of the programmes.

Social impact investment programmes seek to provide investment for achieving positive social change and, in some cases, financial benefits as well. Investments can be made into companies, NGOs, prizes or funds with the intention to generate social and environmental impact alongside some return.

The increased surveillance by governments, the shrinking space for civil society and taxation make the cost of social impact high.

Risks have to be calculated proactively and thus a need for conviction that makes ‘sense’.

Competition is a reality that NGOs have to adjust to; new ideas that respond to social problems are generated by nascent organisations, the young and fresh school graduates who are enthusiasts and have the urge to respond to these social problems without being alive to the contextual progress and challenges.

New ideas thrill social impact investors, yet if not presented from a place and by a trusted source can often send mixed signals when impact is not realised and often inform countries and organisations being blacklisted.

Kenya has transitioned into a middle-income country but what does that mean to funding streaming to CSOs and to the government? NGOs have to think tactfully around their plans to transition healthily into the future.