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Six Reasons to Fund Grassroots NGOs Overseas

Give2Asia Nov 16, 2019
This article is deemed a must-read by one or more of our expert collaborators.
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Giving Compass’ Take:

• Give2Asia advocates giving to local grassroots nonprofits that can offer more knowledge, greater government cooperation, and more agency in developing nations.

• How can you incorporate local nonprofits into your giving portfolio?

• Learn more about Give2Asia’s nonprofit network.


Localized philanthropy is gaining traction with funders, who are fostering program ownership by empowering local stakeholders.

1. More Ownership: Local nonprofits are inherently more invested in the long-term outcome of their work.

2. Local Knowledge: Funders can have more impact dollar-for-dollar by going straight to local program implementers.

3. Higher Return on Investment: Directly supporting the operations and sustainability of local organizations offers a lower cost structure and a stronger foundation for long-term impact.

4. Greater Relevance: Savvy funders to seek bottom-up models that prioritize local knowledge and ownership.

5. Diversification: Funders can increase their odds of achieving a desired impact through a portfolio of local partnerships.

6. Government Relations: Most governments and communities look favorably on local nonprofits with self-directed programs—and the funders who support them.

Read the full article about funding grassroots NGOs overseas at Give2Asia.

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If you are looking for more articles and resources for Philanthropy, take a look at these Giving Compass selections related to impact giving and Philanthropy.

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    Grantmaking Should Be Grounded In Real Costs

    Giving Compass' Take: • Stanford Social Innovation Review makes the argument that building better relationships between funders and grantees is a vital part of "pay-what-it-takes" philanthropy. • What are we doing to build such trust? It all starts with transparency (making sure everyone knows where the money is going), and it helps to bust out of the overhead myth. • Here's more about the challenges within the current nonprofit model and how to address them. This article, “Pay-What-It-Takes Philanthropy,” is a heartening sign of the growing recognition that supporting nonprofit organizations with limited, restricted funding does not work. So what can we all do to make sure this recognition leads to systemic change that sets up nonprofit organizations for success and honors funders with the results their generosity deserves? The answer is simple in theory. But how do we practically make that work in the absence of a mutual commitment to build trust between funders and grantees? This understanding recognizes that: Full costs differ over time. Full costs differ by context. Full costs are about more than covering indirect costs or overhead. Although this particular process may not work for everyone, it may be worthwhile to consider testing it among funders and grantees nationally, adding to the research agenda called for in the article. Most importantly, all funders and nonprofit leaders can help foster more honest dialogue in these ways: Funders: Reorient funding discussions and requests around the results you want grantees to achieve, rather than how you want them to spend money. Signal that you understand the constraints your grantees face. And provide general operating support. Nonprofits: You must articulate clearly the impact you generate with the resources you raise, which takes time and effort you likely do not have. So start by asking the hard questions internally — that will at least make you better informed about your own full costs. Then identify which of your funders would be willing to discuss the implications of these insights. Read the full article about grantmaking grounded in real costs by Antony Bugg-Levine and Fred Ali at Stanford Social Innovation Review.


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