An unrestricted funding model

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https://www.thebusinesspickle.com/pickles/giving-models

Key finding

An unrestricted funding model

comes with its own set of challenges and risks

It requires a higher degree of dedicated input from donors to establish longer term, trust-based relationships with nonprofit organizations receiving funding. Measuring for impact, rather than activities, requires a deeper understanding of complex problems. It demands a high level of trust in grantees to deliver for impact, and to overcome unforeseen obstacles along the way. Businesses adopting an unrestricted funding model will need to be more comfortable with ambiguity, as activities may change throughout the life of a project. Deliverables may require longer time scales.

Related Facts & Findings

From topics:

Giving

B Lab Australia New Zealand

A robust sustainable and governance framework

within a business is a really strong risk management framework for the long term.

"It really does come down to not just the immediate impact of your operations, but how are you designed as a business to cope with change? What we're seeing is many businesses start to put in emissions management frameworks, and as much as anything that is a good hedge against future regular regulatory change, because your business is already ready.”

Oceania

Andrew Davies

Giving is not a substitute or trade-off

Ask yourself this question.

While a business committing to donate a portion of profits to achieving impact is noble, it is not a substitute or trade-off. How else can your business work for equality, and have a positive social and environmental impact through its core operations?

Use platforms to reach consumers

“We always try to authentically communicate what's worked and what hasn't. We wrote a 10 minute read about why we've switched our model on our blog, and have also taken questions on Q and A via social media. A lot of the questions were either resolved, or there was understanding on why we've done what we have.”

Thankyou

Peter Yao

Self-published article

Demonstrating your commitment to purpose

creates an opening to engage with customers in a deeper way.

Providing customers with opportunities to interrogate your decision-making and understand your approach enables them to ‘identify with and feel ownership of’ the business’s purpose.

Deloitte insights

Bring customers on the journey

Be as transparent as possible.

If you are changing the fundamentals of your existing giving model, be as transparent with your customers as possible. While there may be misunderstandings and criticisms, allow space for these conversations and be prepared to explain why your business is taking a different approach.

Look to impact

over activities or outputs

This may require further training and learning about impact evaluations and theory of change methodologies. Get to grips with what meaningful change would look like in this context. Allow room in the budget for the nonprofit to undertake reporting, and be clear on what they are measuring.