Charities and funders need to recognise the strengths of working together and foster ‘impact networks,’ to deliver effective outcomes for beneficiaries, according to a new report from New Philanthropy Capital.

The report describes an “impact network” as a range of activities performed by different organisations that leads to a positive outcome. This can include organisations that see themselves as distinct.

It says these networks are vital, especially in a climate of cuts, to delivering effective services and avoiding duplication.

Joe Ludlow, author of the report says: “In a constantly changing funding environment, it is vital that charities and funders recognise the strengths of working together to maximise impact.

“It is crucial that funders understand the idea of impact networks if they are to fund effectively and avoid cuts that may have wider, unintended consequences. Those looking to fund outcomes, not outputs, need to look beyond the boundaries of a single organisation.”

The onus is placed especially on larger charities to invest in and strengthen these networks:

“If larger charities operate unilaterally and do not foster a strong impact network,” the reports says. “We believe they could risk compromising the outcomes they deliver for beneficiaries.

“However, working relationships between larger and smaller organisations can be characterised by suspicion and mistrust, so larger charities need to play a sensitive role in supporting smaller charities to enhance the performance of the overall impact network.”