Giving Compass' Take:
- Here is an overview of the benefits and different types of funding intermediaries with which donors can build partnerships.
- How can funding intermediaries help donors enhance equitable giving?
- Learn how donors can utilize funding intermediaries in social change work.
What is Giving Compass?
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When a foundation or business decides to support a new cause, it can feel like the last step in a long process. Folks have had to advocate, find money in the budget, and convince leadership to make the investment. However, deciding on next steps can be tricky. Setting an intention to donate is great, but how do you ensure your contribution makes a difference?
You might not have all the answers right away. That’s okay. The grantmaking world is built on relationships. A strategic alliance with a nonprofit whose mission aligns with yours may be just what you need to move forward.
For grantmakers looking to extend their reach and strengthen their network, a partnership with a funding intermediary can be a useful tool. Though intermediaries are sometimes seen simply as go-betweens, with the right relationship in place, they can be much more than that. An intermediary can also add value—through expertise, relationships, or capacity—while serving as a bridge between funders and the causes they feel most passionate about supporting.
What is a funding intermediary?
A funding intermediary is an entity that serves to connect donors to the people and causes they want to fund. In the world of philanthropy, these intermediaries are most often organizations with a focused mission and a unique expertise.
For foundations and grantmakers considering funding intermediaries, building the right partnership takes more than just finding a nonprofit whose mission you believe in. You need to understand the benefits and limitations and work to establish a relationship that serves both organizations.
6 benefits of funding intermediaries
- Connect directly with the community you want to serve
- Reduce administrative and legal costs
- Move quickly
- Tap into a deep well of expertise
- Build capacity
- Integrate your goals into a broader mission
Read the full article about funding intermediaries by Laura Steele at Submittable.