The trust-based philanthropy movement is becoming ever more prominent in the discourse about charitable sector funding practices. The Bridgespan Group notes that it is ‘beginning to see evidence of a shift from a culture of compliance and philanthropic control toward collaboration and grantmaking practices that recognize nonprofit leadership and expertise.’

This ethos intersects with the localization agenda in international development, which intends to shift power to the communities where aid and humanitarian work takes place. Both are part of an important sea change in global giving that aims to decolonize the sector by sharing power and resources more equitably to ensure that decisions are made by the people most affected.

But implementation of these ideas is decidedly mixed in a vast and varied field, with non-profits and funders of all stripes.  There is little uniformity of approach and vision, or even agreement about basic definitions. Cross-border giving has greater barriers to unrestricted support – both real and perceived – for funders of all types. Narrow, project-specific grants still dominate – often channeled through large intermediaries – despite the distorting effect these can have on non-profit missions.

Groups working internationally must inevitably adopt a pragmatic approach and seek funding from a multitude of sources with starkly different philanthropic philosophies — from the most enlightened to the very traditional. While trends and practices may improve, the space will always be characterized by a range of actors and approaches. The small family foundation is different from the mega tech philanthropist is different from the government aid agency. But for international non-profits, it’s critical not to let these realities compromise our values or model.

This means forging healthy and equitable partnerships, particularly between organizations in the Global North and Global South. Bad power dynamics often trickle down, but it’s not enough for international NGOs to use our own funding restrictions as an excuse to replicate practices that are not aligned with our mission and values. Support from the relatively rare subset of progressive funders within the space is critical to enable these healthy collaborations. Flexible funding practices and positive peer influencing in the broader philanthropic world lift up the non-profit sector in outsized proportion to the grantmaking funds they can deliver.

The range of non-profits and other groups working internationally is as diverse as the funding landscape – from emerging actors in countries where NGOs face barriers and legal restrictions to huge global NGOs and everything in between. In order to positively influence philanthropic practices, NGOs of all sizes first need to look inward to their own partnerships and practices. By starting from first principles, Global-Local partners can create a framework for collaboration that sits outside of the inevitable push and pull of project funding.

‘In an ideal world, Global North foundations would fund far more work in the Global South with a minimum of restrictions’

Progressive philanthropy can play an important role by structuring grants in a way that offsets the restrictions of more rigid funding sources, either through general support or with a high degree of flexibility and creative budgeting.

For example, the Gates Foundation allowed Independent Diplomat to incorporate a ‘family care fund’ into a grant to support greater ambition in climate diplomacy. These ‘no strings attached’ stipends – distributed based on trust and for use on anything from childcare costs to bringing dependents on work trips – help us to bolster gender equality in our partnerships. They would not be sanctioned by more rigid funders, but the grant enables us to offer it to partners across the entire program of work. The stamp of approval from a big-name foundation helps provide credibility to replicate the approach with other donors.

For non-profits, it is important that key funders share our values, but also use their peer-influencing power to advocate for good practices in the philanthropic space and beyond. Humanity United found that ‘partners have repeatedly asked us to engage as co-equal members to share our own experiences, trauma, insights, and vulnerability.  At the same time, we are being asked to use our voice more powerfully in the elite spaces and institutions of the global system.’ While your average program officer might share those sentiments, it is rarer for them to permeate a foundation’s strategy and decision-making. Combining solidarity with a willingness to take bold action is a powerful combination.

In an ideal world, Global North foundations would fund far more work in the Global South with a minimum of restrictions. And in partnerships, local and international NGOs would always receive flexible co-funding to support a shared vision where complementary roles are well-defined, and grants are disbursed equitably and directly to each partner. But this approach relies on flexible funding and a specific type of partnership between two well-established organizations that can come together and lend their respective expertise to a joint venture and share the burden of implementation, management, administration and due diligence.

That is one model, but to focus on it exclusively fails to reflect the reality of the international social sector and would shut the door on many effective partnerships. Independent Diplomat often work with actors who are not operating within formally established NGOs for a variety of reasons. That might include Rohingya activists who have other jobs and are not doing advocacy work full time, or refugee-led organizations which are just getting started and lack organizational infrastructure, or former Afghan diplomats who are working in opposition to the Taliban outside of formalized structures.

In these cases partnership could include funding for travel and expenses, providing stipends or consulting fees, or even bringing partners onto our payroll. Progressive trends in philanthropy are welcome, but for now NGOs must still be creative and flexible to navigate the international funding landscape as it exists, not just as we hope it will become.

Nick Scott is Managing Director and Head of Development at Independent Diplomat, a non-profit diplomatic advisory group.