Redefining funding mindsets through solidarity

By Taís Siqueira, Local Leadership Lab Coordinator

Recent funding cuts made many admit something they’d deep down always known: the development community is in desperate need of a reset. Reliance on global north aid has forced civil society into a western mentality—one that prioritises transactional relationships, linear progress and narrow measures of productivity over patience, connection, and meaningful transformation.

Funders often neglect the fact that meaningful change requires patience, flexibility, and time for organisations to connect, organise, innovate, and thrive. They impose rigid structures that demand measurable results on unrealistic timelines.

This mentality is rooted in the belief that resources are very scarce—but that’s often not the case. Some philanthropic funders are sitting on huge assets. Take the example of the MacArthur Foundation, which recently made a positive and welcome move, responding to the USAID shutdown by increasing its annual giving from 5 to 6 per cent. This was rightly praised, but the reality is that with a 10.92 per cent return on investment in 2023 and an 8.52 per cent compounded return from 2014 to 2023, the foundation could have doubled its annual giving without compromising its sustainability. There are many more where this is also the case.

Read on Alliance Magazine

Photo by Annie Spratt on Unsplash

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