Multi-stakeholder networks are an increasing, and increasingly vital, feature of the social sector, yet they remain inadequately resourced, even by comparison to the broader nonprofit space.

What we commonly encounter at Collective Mind in our work as advisors and consultants is that funders are often focused on sectors, issues or topics. They may fund a network as complementary to other, traditional organisational grantees within their area of interest, but they don’t necessarily seek out or focus specifically on networks as an explicit or distinct funding strategy. One reason is that donors may not be fully aware of the distinctive character of networks, the types of change they can achieve, or how long it takes to achieve it. At the same time, networks struggle to clarify their distinctiveness and the implications for what they can achieve and to demonstrate their impact or to articulate a compelling value proposition. Funding for networks is thus structured for programmes or projects rather than network activities, staffing, and collaborative infrastructure. It is inadequate or inappropriate – or both – for the network to effectively engage its members in collective efforts.

Our in-depth research on funding networks bears out that current practice is based on an obsolete and inappropriate operating model, devised for non-profits and fails to meet the complexity of networks. A new operating model for funding networks would define the people, structures, and processes that are appropriate for funding networks. It would be generated from a deep understanding of the nature of networks: encompassing diverse stakeholders within horizontal, as opposed to top-down, organising models that facilitate and coordinate those stakeholders’ efforts towards system-level change.

Funders must redesign how they fund networks