Funding Futures: Powering Your Impact Network for Systems Change

Impact networks are gaining recognition as crucial catalysts of system change.

Unlike traditional organizations, they:

• Embrace emergence.

• Rely on relationships.

• Operate decentralized.

While these qualities make them uniquely effective, they also create distinct funding challenges:

1. Securing Flexible Funding: Struggling to obtain the flexible, multi-year, unrestricted funding.

2. Misalignment with Traditional Metrics: Long-term, systemic, and often relational outcomes, clash with funder expectations.

3. Difficulty Demonstrating Value: It's challenging to articulate the value of core network functions like fostering relationships.

4. Underfunding of Core Network Functions: Essential "catalytic" work is often chronically under-resourced because it's harder to define.

5. Gap Between Funder Rhetoric and Practice: Despite growing funder interest in systems change, a gap exists between iscourse and practices.

So, how can your network secure the resources you need to thrive and scale your impact?

Let’s dive in.

1. Ride the Wave: Understand the Shifting Funding Landscape

Good news:

The funding world is evolving.

Key trends are creating a more favorable environment for networks.

• Systems Thinking is In: More funders are looking beyond symptoms to address root causes.

• Collaboration is Valued: Funder collaboratives and pooled funds, which align with networks are multiplying.

• Trust is Trending: The Trust-Based Philanthropy movement advocates for shifting power to grantees.

What this means for you:

Frame your work using systems language. Then, seek out collaborative funding opportunities. It also helps to advocate publicly for impact networks.

2. Become "Findable and Fundable"

Networks often struggle to demonstrate the value of less tangible work.

To bridge this gap:  

• Articulate Your Value: Focus on the core functions your network performs. Then use storytelling and qualitative data to show how these activities lead to systemic shifts. Consider methods like Outcomes Harvesting for it.

• Be Findable: Clearly communicate your network's unique purpose, the system you aim to change, and your value proposition. Ensure potential partners know you exist and what you offer.

• Be Fundable: Translate your network's relational strength and adaptive capacity into a compelling case for investment. Show how funding the process enables the outcomes.  

TIP: Get a copy of the new book Fundable & Findable from Kevin L. Brown.

3. Find Your Allies: Strategic Funder Identification

Don't just look for funders in your issue area.

Seek those whose approach aligns with network principles:

Funders focused on systems change, collaboration, trust-based practices, or movement building.  

Identifying these aligned partners can be time-consuming.

That’s why we (The Fito Network) created a database of funders known to support network approaches.

These resources can help you filter potential partners by issue area or location, but crucially, by their grant style and approach.

However, the database is just a starting point.

Deep research and genuine relationship-building are essential.

TIP: To get access to the networks funder database, join one of two events of the topic on the 06.05. or 07.05.

4. Build Resilience: Diversify Beyond Grants

Over-reliance on grants creates vulnerability.

Changes in funder priorities or economic shifts can destabilize your network. It’s happening right now with the cuts of USAID.

Diversification builds resilience and autonomy.

Explore models like:  

• Membership Fees: Tiered contributions from participants.  

• Pooled Funds: Internal member contributions or seeking external pooled grants.  

• Earned Revenue: Offerings like workshops, consulting, or selling resources.  

• Resource Sharing: Formalizing in-kind contributions among members.  

• Partnerships: Strategic alliances with businesses or other organizations.  

• Individual Giving: Crowdfunding, peer-to-peer campaigns, recurring donations.  

TIP: To build a blended resourcing and funding strategy, check out our guide on the topic.

Key Takeaway

Funding impact networks requires strategic adaptation.

Through:

1. Understanding philanthropic shifts.

2. Clearly articulating your unique value.

3. Strategically identifying aligned funders.

4. Diversifying your resource base.

…you can build the financial foundation needed to sustain your network and catalyze lasting systems change.

That’s it!

Let’s keep weaving together.

In solidarity,

Adrian

PS: The program of the Networks Festival is now live. There are 35+ sessions on many relevant topics for impact networks.

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About the Systemic Shift Newsletter

This weekly newsletter is dedicated to exploring practices, mindsets, and strategies that make networks effective in driving systemic change. Each issue offers practical tools, real-world lessons, and curated opportunities to help you build impactful, collaborative networks & communities.

Stay tuned next Tuesday for more!