'Funding plus' models can add value, research concludes

Fundraising | Kirsty Weakley | 22 Sep 2011

The Institute for Voluntary Action Research (IVAR) yesterday unveiled its findings into the ways funders can add value to a project with a 'funding plus' approach.

Although the idea of trusts and foundations offering projects extra support beyond just money is not new, Ben Cairns, director at IVAR and one of the report authors, told delegates at the launch that in the the current economic and political climate, "the spotlight on funding plus is currently shining bright".

The report, Beyond money - a study of funding plus in the UK, which was commissioned by the Barrow Cadbury Trust, the Diana Princess of Wales Memorial Fund and Trust for London, identifies two main areas of funding plus support: capacity-building within organisations to develop particular skills, and help influencing government and inter-government policy.

It concludes that on the whole, funding plus is a positive thing but sets out six conditions for its success. These are:

Funders need good knowledge of the grantees
Strong relationships between the two parties are essential
Coherence between the purpose, design and delivery
Avoid a prescriptive, standardised approach
Funders need to be careful about the way they pursue their own goals.

At the launch Alastair Wilson, chief executive of the School for Social Entrepreneurs, argued against a funding plus approach, saying that in his experience it did not work. He said: “If I had had no experience of funding plus I would be all for it.”

He explained that organisations are not always able to be honest with funders about difficulties they’re having and argued instead for more partnership arrangements.

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