Over the last few years, we have seen attention going to initiatives that aim to redistribute funding in a way that acknowledges that those who are in closer proximity to the communities they serve have a deep understanding of the context, problems, priorities, and solutions of those communities; thus know best what is needed to address the challenges they face.

One initiative that we are seeing in philanthropy is the Shift The Power movement which seeks to tip the balance of power in the development sector towards a fairer and more equitable people-centered development model and reform the top-down system of international development and philanthropy.

Another initiative is the Localization Agenda, with the central premise that local communities best understand the challenges they face, and the solutions needed to address them. As such, funders should be resourcing communities to take ownership of their own development initiatives. The Localization Agenda approach fosters sustainable and context-specific solutions through direct grantmaking.

The Frontline-Serving Intermediaries: An underutilized tool for philanthropy report by Arabella Advisors, JPB Foundations, Winward Fund explores the role ‘intermediary funds’ play in environmental and climate justice movements. More specifically, the brief touches on how combining funds from larger donors and frontline intermediaries can provide flexible and multiyear funding to frontline organizations.

‘One common thread across the different initiatives and approaches is acknowledging the experience and expertise of those who are in closer proximity to communities and to the problems being addressed.’

Like the organizations they support, the brief states that these funds have deep cultural and geographic ties to the communities they serve. Moreover, the brief notes, that their priorities are shaped by frontline leaders and their strategies are place-based and culturally informed.

In a similar manner, The Philanthropic Collaborative Landscape, report by The Bridgespan Group explores the role of ‘Collaborative Funds’ as intermediaries that charted a course that differs from traditional philanthropy.  Collaborative Funds tilt toward equity and justice, field-and movement-building, and leaders of color, and are active and based around the globe.

One common thread across the different initiatives and approaches is acknowledging the experience and expertise of those who are in closer proximity to communities and to the problems being addressed. In turn making the case to moving from traditional philanthropy to investing in approaches that pursue a shift towards redistributing funding in more direct, effective, and equitable ways.

Indigenous Led Funds align with the different approaches and initiatives to move more and better resources to those who best understand the challenges they face.

Indigenous-Led Funds play a critical role in increasing direct access to funding to Indigenous Peoples globally, and growing a giving practice that moves away from unequal power dynamics to a one of values-based partnerships that incorporates Indigenous rights, self-determination, and values. Moving to International Funders for Indigenous Peoples’ (IFIP) ‘Five R’s of Indigenous Philanthropy’ — Respect, Relationships, Responsibility, Reciprocity, and Redistribution as a giving practice.

To understand the importance of Indigenous-Led Funds, it is essential to recognize the historical and ongoing marginalization of Indigenous communities worldwide. Traditional philanthropic models have often overlooked or disregarded the unique needs and worldviews of Indigenous communities.

These structures prioritize Western metrics of success that fail to capture the challenges faced by Indigenous Peoples. These systemic barriers in the disbursement and access to funding and resources, have often resulted in either no funding or underfunded projects and initiatives for Indigenous Peoples. This disconnect highlights the critical need for a shift in philanthropic practices towards more inclusive and culturally sensitive approaches to redistributing philanthropic funding.

This reality prompted a movement towards Indigenous-Led funds, where Indigenous communities have the autonomy to decide where and how resources are allocated.  These funds work tirelessly to support grassroots Indigenous activism and community development and have over the years, provided direct grants and capacity-development support to countless projects and initiatives implemented by Indigenous Peoples.

The significance of Indigenous led Funds and direct funding

Indigenous-led Philanthropy is giving done by Indigenous-led funds and Indigenous organizations informed and guided by Indigenous worldviews, values, and protocols, and led and managed by, for, and with Indigenous Peoples. Globally, only 0.6 percent (4.5 billion) of giving was identified as benefiting Indigenous Peoples as outlined by the available data in Candid from 2016 to 2020. Of the 4.5 billion (0.6 percent) Indigenous governments and autonomous regions, and Indigenous-led organizations received $ 1.5 billion (0.2 percent) of the global giving.

The significance of Indigenous-led funds goes beyond direct financial assistance for Indigenous Peoples and their communities. The funds are deeply rooted in cultural values, traditions, and ways of knowing and they also understand the complexities and nuances of Indigenous issues, ensuring that support is holistic and culturally relevant meeting the needs and priorities of communities.

‘However, there are challenges that must be navigated and key amongst them is trust building between funders and Indigenous communities because of the historical traumas and broken promises that has led to scepticism’

It’s not just about giving money; it’s about fostering self-determination and resilience. These funds act as bridges between communities and external resources. They provide a platform for partnerships, knowledge exchange, and collaboration, amplifying the impact of Indigenous-led initiatives.  Funding Indigenous Led Funds acknowledges the expertise and agency of Indigenous Peoples in addressing their own needs and by providing resources and support, funders can catalyse Indigenous driven solutions that have a deeper impact on the community and long-term sustainability.

Investing in Indigenous-Led funds have ripple effects that go beyond immediate projects. It supports capacity strengthening within the fund and Indigenous organizations, creating networks of support and expertise. This, in turn, strengthens the overall fabric of Indigenous communities, enabling them to tackle future challenges with resilience without compromising their values or ways of living.

However, there are challenges that must be navigated and key amongst them is trust building between funders and Indigenous communities because of the historical traumas and broken promises that has led to skepticism. To address this, philanthropy must engage in meaningful dialogue and partnership with Indigenous Peoples. This involves active listening, respecting Indigenous world views and ways of living, and centering community voices in decision-making processes. Building trust takes time and commitment, but it is essential for sustainable and impactful philanthropy.

Another challenge is the need for flexibility in funding structures. Traditional grant making models often come with strict guidelines and reporting requirements that many times do not align with Indigenous values and practices. In addition to this, there is the language barrier challenge, where most applications and ultimately reporting is done in languages that are foreign to most Indigenous peoples. Funders must be open to adapting their approaches to giving and allow for more fluid and holistic solutions to emerge.

A ‘paradigm shift’?  

Philanthropy appears to be engaging in the different initiatives and approaches to move resources in a more direct manner to the organizations that are in closer proximity to the work happening on the ground and to organizations that are in the frontlines a welcome step and one we hope it continues.

‘Decolonizing wealth also means reimagining philanthropy itself. It requires a shift towards humility, cultural competency, and collaboration and acknowledging the harm caused by extractive and colonial approaches to giving.’

IFIP would add that Indigenous- led funds are strategic partners and actors in philanthropy. These funds are powerful vehicles for change, not only providing vital support to communities but also challenging traditional philanthropic models through a lens of decolonizing and redistributing philanthropic wealth.

Indigenous- led Funds represent a paradigm shift in decolonizing wealth that challenges the unequal distribution of resources resulting from colonial legacies. It seeks to redistribute wealth, power, and decision-making to those who have been historically marginalized.

Decolonizing wealth also means reimagining philanthropy itself. It requires a shift towards humility, cultural competency, and collaboration and acknowledging the harm caused by extractive and colonial approaches to giving. Indigenous-led Funds emphasize relational philanthropy, where the 5R’s of Indigenous philanthropy form the foundation of partnerships and are a critical step towards empowering Indigenous peoples to control their own narratives, resources, and future self-determination.

Indigenous-led funds are a necessary recalibration of the philanthropic landscape. It challenges mainstream foundations to rethink their practices, moving towards more equitable and community-centered approaches. By investing in these funds, philanthropists can contribute to sustainable, long-term impact while honouring Indigenous sovereignty and self-determination.

‘The establishment of the Global Alliance of Indigenous Led Funds marks a milestone in the journey towards supporting Indigenous Peoples’ self-determination.’

As we look to the future, the importance of Indigenous-led Funds in philanthropy cannot be overstated. They are not just financial vehicles; they are embodiments of Indigenous sovereignty, wisdom, and strength. Supporting, embracing and elevating Indigenous-led Funds is not charity but a step towards justice and reconciliation. It is a recognition of past wrongs and a commitment to a more equitable future. By amplifying Indigenous voices and leadership, we can create a philanthropic ecosystem that equally truly serves the needs of all.

The Global Alliance of Indigenous led Funds

In February 2023, IFIP organized the Third Global Gathering of Indigenous-led Funds, prior to our bi-annual Global Conference  in Merida, Mexico. This gathering marked a crucial moment for the Indigenous Led Funds working group, which was initially established during the Second Global Gathering of Indigenous led funds in Canada 2019.

Discussions focused on the direction and future of the working group. With the recognition that there existed a diverse array of Indigenous- Led Funds, varying in their levels of establishment and emergence, it became evident that the working group needed to evolve. This evolution led to the creation of the Global Alliance of Indigenous Led Funds that would serve as a collaborative, learning, and advocacy space dedicated to shifting funding paradigms in support of Indigenous Peoples’ self-determination.

The establishment of the Global Alliance of Indigenous Led Funds marks a milestone in the journey towards supporting Indigenous Peoples’ self-determination. This evolution from a working group to an alliance underscores the importance of Indigenous led funds in reshaping philanthropy. By having this space, the Alliance is poised to drive a profound shift in funding paradigms.

Through this collective effort, we can amplify the voices of Indigenous communities, promote transparency, and empower local solutions.

Lourdes Inga, Quechua, is the Executive Director at International Funders for Indigenous Peoples.

Winnie Kodi, Nuba, is Membership and Communications Manager at International Funders for Indigenous Peoples