Photo by Glen Carrie on Unsplash

The limits of short-term funding

Many funders look to spend money on short-term, clearly defined projects. While these initiatives can create immediate impact, they rarely provide the foundation for long-term systemic change. This is because real change requires tackling deep-seated issues around power, behaviours and social context.

Addressing these root causes takes time. It means investing in relationships, navigating difficult conversations and being willing to share power. To do this effectively requires vulnerability and trust between funders and the organisations they support. When we force complex social challenges into neat, short-term project cycles, we often limit the potential for genuine transformation.

The recent closure of the Catalyst initiative highlighted this exact tension. They concluded that their impact within the tech for justice space was ultimately limited by being beholden to the short-term funding priorities set by grantmakers.

Growing the soil, not the crops

We can learn a lot from the natural world when thinking about sustainable investment. The team at Wilder Work, alongside Holly Tennock, talk about how successful farmers focus on growing the soil, not just the crops.

Each short-term crop is simply a means to an end. To be truly sustainable, a farmer has to make the health of the soil their primary focus. They spend time understanding what the ecosystem needs and how to make it stronger, so it can continue to deliver over the long term.

Funders need to adopt this exact same mindset. Rather than just buying short-term projects, we need to create structures that allow people to truly invest in their infrastructure and core capabilities.

Practical ways to fund long-term infrastructure

Moving away from a project-based mindset requires a shift in how grants are designed and awarded. We can look to the IVAR principles of open and trusting grantmaking for a clear framework on how to do this.

Their commitments show how funders can reduce the burden on charities and start acting as true partners. The focus shifts from strict auditing to reducing friction and building genuine relationships.

  • providing multi-year, unrestricted funding so organisations can adapt to changing needs

  • keeping applications proportionate and only asking questions that genuinely inform your decision

  • accepting your share of the risk rather than expecting charities to guarantee outcomes outside their control

  • moving to light-touch reporting that focuses on shared learning instead of strict auditing

  • acting with urgency and sticking to clear timelines so applicants are not left in limbo

  • funding discovery and research phases so teams can fully understand a problem before building a solution

Modern funders such as the Paul Hamlyn Foundation make it as easy as possible for a wide range of people to apply to their funds - keeping the application in proportion to the amount being requested

Shifting the power dynamic

Investing in infrastructure also means changing how decisions are made. Our strength at William Joseph lies in how we collaborate and partner with our clients and their audiences. We know that progressive ways of working must always have equity at their heart.

For funders, this means embracing participatory grantmaking. When you give the communities you serve a genuine say in where the money goes, you move away from top-down project buying. You start building a more equitable system that shares power and builds local capacity.

Systemic change is difficult, slow and often messy. But by focusing on the soil rather than the crops, funders can help build a more resilient sector that is capable of tackling the biggest challenges we face.

If you are a funder looking to design grantmaking processes that work for everyone, get in touch with us. We can help position your organisation as a friendly, approachable, collaborative partner that supports lasting change.