Overcoming roadblocks in collaborative philanthropy to move the needle on pressing social issues

As our understanding of the complexities of social issues continues to evolve, it has become clear that any breakthroughs will require systemic change. This requires taking a holistic view of prevailing issues – identifying and addressing underlying causes, rather than focusing solely on symptoms. For example, to address access to education for girls, several underlying issues such as cultural norms, access to sanitation and menstrual hygiene, safe transport etc. must also be resolved.  Solving for such intersections requires a multi-dimensional approach for which larger pool of funds and long-term interventions are essential. Collaborative philanthropy is a mechanism which brings together several donors who can invest at a scale and a period which is proportional to the challenge at hand. 

Challenges of collaboration

While collaborative philanthropy can bring many benefits, a convergence of a diverse pool of funders, however, is bound to have its own set of challenges. A shared vision and a common purpose are essential for the success of a collaborative. One of the pre-conditions for forming the collaborative is in fact, the purpose to which all the partners joining the collaboration must be aligned. At the point of inception, the proposed partners must define their purpose – what is it that the collaboration will achieve? An important element of purpose is deciding the pathway which the collaborative will choose to make an impact. The collaborative may be formed for advocating policies, disseminating knowledge, mobilizing funds, or to implement programs. Clarity of purpose enables the collaborative to on-board the right partners, aligning diverse competencies and assign appropriate roles and responsibilities to the partners.

A survey on collaborative philanthropies by the Bridgespan Group found that 48% of the survey respondents believe that one of the fundamental challenges with philanthropic collaborations is a dearth of clarity. Roles and responsibilities of partners with respect to decision-making and the areas where their competencies must be established. It is also important to maintain the dynamics between larger and smaller funders. Role of each partner in the governance structure and criteria for allocating voting rights must be decided at the very outset. Establishing the processes for good governance is instrumental in getting past any impasses due to disagreements. Having a separate body to carry out due processes can facilitate communications. At times intermediary organisations are on-boarded to manage collaborations between funders. These prove to be an effective way to delegate the organize funds, facilitate coordination, and provide strategic information on key decisions which the collaborative needs to take.

Defining milestones is the logical next step after all the creation of the collaborative. Consensus must be built on setting short-term and long-term goals, performance indicators, periodic reviews, and evaluation. Here, consensus needs to be built on strategic goals and how progress is measured. Many external factors might come into play during this period. An example of this is the COVID pandemic, due to which schools were shut down and therefore any previous mechanism to measure learning outcomes had to be reviewed. Therefore, it is necessary to keep view of the larger objective and ensure openness amongst partners to revise the processes in case any contingencies arise.

Building trust with grantees

Another crucial aspect which a collaborative philanthropy must keep in mind are the inherent power dynamics between the funders and the grantees. A balance must be achieved between adherence to goals and the flexibility which the grantees require to respond to factors which affect the communities they serve. Grantees or implementing partners’ knowledge of the grassroots must be respected. It must be acknowledged that working with communities is not a linear process and during the course of a program or a project reinventing and innovations might be required. One of the benefits of collaborative philanthropy for grantees is the promise of funding over a long period of time. Building scope for adaptable usage of funds will not only encourage the grantees to innovate but also help foster trust with the collaborative. Further, establishing transparency about processes and expectations, simplifying paperwork, and creating feedback loops helps all the parties to be mutually accountable and timely communicate challenges.

Value creation through collaborative philanthropy 

Collaborative philanthropy brings together organisations with diverse profiles and expertise, thus opening avenues to leverage this to address a wide array of barriers. The partners in the collaboration can be assigned roles and responsibilities as per the skills they bring to the table. Working together can create synergies making the overall impact much larger than what a philanthropy or an implementing partner might have made in isolation.  

In a very traditional approach to philanthropy, non-profits face the risk of discontinuity in funding. Here, collaborative philanthropy minimizes this risk by spreading the funding pool across many funders which includes core funders who commit to funding the collaboration over a period. Therefore, the flow of funds for multiple years is ensured, which allows for strategic planning and programs which can deliver impact over a longer period. With adequate timeframes for executing strategies and adapting to external dynamics, the chances of failure of the program or collaborative are also considerably lowered. Collaboratives also minimize the duplication of efforts of organisations working in isolation. With numerous organisations working together with a holistic view of the issue(s) at hand, areas of intervention which might previously have received less attention can also be addressed. 

Collaborative philanthropy is emerging as a means to consolidate efforts to move the needle on prevalent social issues. A collaboration by its very nature fosters opportunities for creating and sharing knowledge. With a robust governance structure and operating mechanisms, collaborative philanthropy can unlock the potential of diverse experiences, knowledge, and mobilization of resources for lasting impact. 

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