Collaborative philanthropy has long been a powerful tool for fostering resilience and sustainability. Now, as political landscapes and civil societies shift, it’s even more critical. The 2019 report, Sustaining Civil Society: Lessons From Five Pooled Funds in Eastern Europe, published by The Graduate Center of City University of New York examines the experiences of five pooled funds that played a critical role in strengthening civil society across Eastern Europe. These funds — the Environmental Partnership for Central Europe, the Baltic-American Partnership Fund, the Trust for Civil Society in Central and Eastern Europe, the Balkan Trust for Democracy, and the Black Sea Trust for Regional Cooperation — provided essential support to emerging non-governmental organizations (NGOs) during a crucial period of transition after the Cold War.

The Strategic Role of Pooled Funds

The establishment of these funds was a timely response to the urgent need for independent civic spaces in post-communist societies. By bringing together U.S. and European private foundations alongside multilateral and bilateral development agencies, these pooled funds provided sustained, coordinated support that was instrumental in developing grassroots organizations, strengthening legal frameworks, and promoting civic engagement. This collaborative approach reflected a broader optimism about the prospects for civil society and democracy in the region.

Diverse Approaches to Supporting Civil Society

Each pooled fund operated with unique structures and priorities, tailored to the specific needs of the countries they served:

  • Environmental Partnership for Central Europe (1991-2004): Focused on environmental protection and civic participation in Central Europe, supporting small, community-based projects that later evolved into a network of independent national foundations.
  • Baltic-American Partnership Fund (1998-2008): Strengthened civic engagement and advocacy while encouraging market-based philanthropy in Estonia, Latvia, and Lithuania.
  • Trust for Civil Society in Central and Eastern Europe (2001-2012): Worked on creating supportive legal and fiscal frameworks, increasing the capacity of the nonprofit sector, and fostering financial sustainability.
  • Balkan Trust for Democracy (2003-2020): Promoted democracy, governance, and regional cooperation, playing a vital role in European integration efforts.
  • Black Sea Trust for Regional Cooperation (2007-2022): Advanced cooperation among public, private, and nonprofit sectors while fostering dialogue with European institutions.

Impact and Legacy

The report highlights several lasting contributions of these pooled funds to the civil society landscape:

  • Institutional Development: Many organizations initially supported by these funds continue to play crucial roles in advocacy and democratic governance. For example, the Environmental Partnership Foundations have become major grantmakers, while Latvia’s Ziedot.lv online giving platform, seeded with funding from Baltic-American Partnership Fund, has enabled sustainable philanthropic engagement.
  • Policy Influence: Many grantee organizations contributed to legislative reforms and administrative changes, such as the Estonian Civil Society Concept (EKAK) and advocacy efforts influencing EU policies on civil society.
  • Cultural Shifts: Beyond institutional development, the funds also helped shape societal attitudes toward civic engagement, regional cooperation, and cross-border understanding. Initiatives like the Black Sea Arts Festival helped foster peace and dialogue in historically divided regions.

Challenges in Sustainability

Despite their successes, the report underscores a persistent challenge: ensuring the long-term financial sustainability of civil society organizations. Many NGOs remain heavily reliant on project-based funding, limiting their ability to plan for the future. While some pooled funds were established with the expectation that economic and political progress would ensure sustainability, this has not always been the case. Efforts to develop community foundations have yielded mixed results, revealing the need for strong leadership, international support, and well-connected networks.

Key Lessons for Funders in Collaborative Philanthropy Impact

For donors and funders looking to support civil society in today’s complex landscape, the report offers several important takeaways:

  1. The Power of the Pooled Fund Model: These funds demonstrated that pooling resources can enhance flexibility, reduce administrative burdens, and improve grantmaking legitimacy, especially when structured as domestic legal entities with local oversight.
  2. Building Trust in Civil Society: Supporting infrastructure organizations, fostering transparency, and promoting ethical practices are key to countering skepticism about NGOs and increasing public trust.
  3. Enhancing Sustainability and Capacity: Funders should prioritize core support and capacity-building initiatives while encouraging diverse revenue streams, such as local philanthropy and earned income.
  4. An Examination of Four Special Cases: The report found particular nuances pertaining to four organizational types that authors felt deserved special consideration because of the importance of their roles in protecting and enhancing the legitimacy of civil society and enabling it to perform its vital functions effectively. Those organizations included: general purpose philanthropic or civil society infrastructure organizations — particularly those that are membership based — general purpose advocacy or watchdog organizations, independent media, and community philanthropy.

The Growing Challenge of Shrinking Civic Space

The report warns that the "shrinking civil society space" is an increasing global concern. Governments in some countries have imposed restrictive policies that limit NGO operations, as seen in Hungary’s legal actions against civil society organizations and scrutiny over funding sources. As one foundation director remarked, “We are trying to learn from Hungarian colleagues about how the frog was boiled.” In this context, flexible and responsive funding mechanisms remain critical for sustaining independent civic engagement.

Supporting Civil Society Requires Long-Term Commitment and Adaptive Strategies

The experience of these five pooled funds offers valuable insights for funders committed to sustaining civil society. While they have achieved significant milestones, the continued survival and effectiveness of civil society organizations require long-term commitment and adaptive strategies. As civic spaces come under increasing pressure, funders must remain vigilant, innovative, and dedicated to fostering resilient, locally embedded organizations that can weather political and economic uncertainties.

By understanding the lessons from these pooled funds, today’s donors can craft more effective, impactful strategies to sustain civil society in challenging times. The need for robust, independent civic institutions remains as urgent as ever, making strategic, collaborative philanthropy a crucial pillar in the defense of democracy and human rights.

This article was written with the help of Notebook LLM and ChatGPT 4o.

Read the full article about pooled funds by Barry D. Gaberman, Merrill Sovner, and William S. Moody at Giving Compass.