Systems Change

Philanthropy for

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Co-Impact Handbook
Excerpt from
 Courtesy of Fundación Capital
One of Co-Impact’s goals is to advance Furthermore, s ocial change organizations tend to lack
reliable access to the kinds of non-financial supports
collaborative, trust-based philanthropy that can significantly accelerate systems change work.
for systems change and gender justice Success often requires expertise and capacity in law
that both learns from and inspires and policy, marketing and fundraising, leadership
and performance management, and ways to nurture
others, and generates learning for the an inclusive environment. Additionally, t he voice,
broader philanthropic community. networks, and convening power of funders can be
extraordinary assets to the cause. Yet relatively few
Constraints in Philanthropic Practice funders offer funding and linkages to cover this kind of
patient, h olistic support—and few change organizations
Our model is designed to overcome three key have the resources to secure it on their own.
constraints in philanthropic practice that affect
both funders and social change leaders. There are examples of visionary social change
organizations driving systems change today and
throughout history. Yet these are still relatively few
Most giving remains relatively small and far between. We know leaders from many proven
and fragmented and not aligned with organizations wh o are eager — and have already
what is required for large-scale and started — to develop compelling and deeply credible
enduring impact. plans and partnerships for systems change eff orts,
but many need flexible support (and encouragement
The nature of most donor grants is unsuited for in the form of a realistic funding opportunity) to get
enabling lasting systems change. Even proven social their initiatives to a place where they are ready for
change leaders struggle to piece together the substantial large-scale investment.
funding and support to pursue enduring impact at
Too often program partners feel that they need to
national, regional, or global scale, and have to spend
tailor their goals within the priorities, f unding cycles
extraordinary time and eff ort in doing so. Most grants
and ways of working of their donors. This can consign
tend to be relatively small, of a s hort duration (t ypically
program partners into a “s ubcontractor” role as a
1-2 y ears), r estricted, and do not cover necessary
manager of dozens of short-term donor projects,
costs related to overhead, m onitoring, e valuation and
rather than architects and drivers of a deep and
learning, or organizational development.
strategically coherent program wh ere each component
Often, r estrictions on grant use can constrain contributes towards a p owerful whole. We believe
social change organizations. For example, l ots of that it should be the other way around; a nd funders
small grants with earmarked funding can fragment should tr y to support the structure and rhythm of their
focus and undermine strategic coherence. This program partners.
fragmentation often requires the leaders of social
change organizations to spend way too much of their Investment-ready systems change
time — typically upwards of 30% — chasing funds and efforts are rare; few social change
meeting donor requirements instead of focusing on
their core work and developing their strategies for
leaders have built robust strategies,
systems change eff orts. D onor requirements for capabilities and partnerships to drive
proposal writing, due diligence, reporting and others systems change, although many have
can also be over-burdensome, t aking away valuable the vision and ability to do so.
time and energy from doing the core work.

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Many funders want to make substantial investments to Co-Impact nurtures a model of collaborative
help address the world’s problems. However, t he time philanthropy that seeks to better serve social change
and expertise needed to set up, s taff, s ource, c arry organizations and funders by overcoming these
out due diligence, and extend grants means that even constraints. In their support for Co-Impact, o ur
foundations with ambitious goals and large asset bases funders bring expertise drawn from their experience
can find it difficult to find, vet, s tructure, and support of supporting systems change and seek to take a
efforts to drive results at scale. new approach.

Furthermore, f unders with varying perspectives on

There aren’t enough efficient
strategy, f ocus or geographic preference, c an pull
program partners in opposing directions, t hereby mechanisms for funders to find and
hampering coherence in the process. Aligning around support high-potential investments,
one shared vision and approach is often critical to and to collaborate with one another
achieving large-scale results. However, w ith a few in a meaningful way, especially
important exceptions, mu ch philanthropy today
remains remarkably siloed, and does not work together across borders.
collaboratively to support strategic coherence among
program partners.

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Collaborating for Systems Change Funding collaboratively also brings several additional
benefits for funders, including: t he opportunity to
Even where funders acknowledge the type of flexible increase learning, s upport thoughtful decision-making,
and long-term funding that systems change requires, leverage non-financial expertise, promote operational
it is still challenging to implement a systems change efficiency, and decrease risk.
funding strategy as an individual organization. For this
reason, w e know that many funders are thinking about Beyond the increased impact of working together for
how to partner eff ectively with others. systems change, w e also work with others in the wider
sector to influence more philanthropy of this nature
But the reality is that collaboration isn’t always easy in and better funding practices in general. A joint report
practice. Most collaborations are focused on knowledge together with Ashoka, Catalyst 2030, Echoing Green,
exchange or some level of coordination of funding. the Schwab Foundation for Social Entrepreneurship,
and the Skoll Foundation published in 2020 represents
However, t o address systemic challenges, w e need
one of the first major eff orts to come to a set of
more collaborations that are bolder and willing to
common principles around funding systems change,
go a step further by pooling funding. This means
and very much represents an ongoing conversation.
prioritizing outcomes of the initiatives ahead of any
We also use our voice and influence in the sector
specific organizational or individual recognition, a nd
more widely to encourage what we consider to be
relinquishing some degree of control, in exchange for
better philanthropy.
deeper and more sustainable impact.

Pooling funding towards systems change initiatives can Contributing to Thinking About
achieve greater impact because the vision is long-
term — far beyond a single intervention or year-to-
Philanthropy’s Role in Society
year funding. Su ccessful examples of systems change Over the last few years there has been renewed
throughout history have taken decades to achieve. interest in how philanthropists are using their
And we recognize that even the five- to six-year grants power and influence in ways that could undermine
we make are only a part of the story. Nevertheless, b y democratic decision-making. This has led to criticism
coming together and investing in this way — in building of philanthropy, p articularly in environments where
on wh at’s already working, f ocusing on organizational government is shrinking, and philanthropic dollars
strengthening, s upporting winning coalitions, and are replacing or supplanting government functions.
helping to unlock additional capital from other funders
or government resources — we are able to make a more Furthermore, g lobal events have resurfaced
meaningful contribution towards long-term systemic challenging and important questions around structural
change. This approach also allows our partners to racism, s exism and economic and social inequality, and
secure significant monetary and in-kind leverage from fundamental discrimination and oppression.
governments and other funders.
We recognize that these issues are systemic and
Co-Impact is an example of a gr owing number of centuries old. Grappling with the reality of structural
collaborative funds. This does not mean that every racism, sexism, economic and social inequality, and other
funder should pool their funding and focus only on forms of discrimination raises critical questions about
systems change; w e know that philanthropy can play the role philanthropy has been, i s, and should be playing.
an important role in areas such as funding early- We are also mindful of the fact that those with wealth
stage innovation, gr assroots organizing or responding have disproportionate power and privilege, reinforced
to humanitarian crises. We also recognize that the by prevailing political and socio-economic systems.
initiatives we choose to fund have usually benefitted As critics have noted, a c ontradiction at the heart
for many years from early-stage funding from others. of philanthropy is that systemic arrangements allow
A key reason we focus on long-term, s ystems change wealth to be amassed by a few individuals, in some cases
and impact at scale is that research shows that very that are harmful to people and the planet, and then this
little funding is available for this sort of work. By wealth is deployed towards philanthropic causes.
pooling resources, w e can support partners to work at
a scale and level of complexity commensurate with the
pressing challenges of today’s world.

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Co-Impact and our partners grapple with these Living Out Our Values
challenges across our work. We believe philanthropy
must play an active role in dismantling structural Funders also need to examine their own behaviors.
discrimination in all its forms including, b ut not We care both about how funds are made, and how they
limited to, o n the basis of gender, r ace, c aste, are deployed through philanthropy. At Co-Impact, our
ethnicity, cl ass, disability, and sexual identity, and policy for accepting funders into our growing community
other socio-contextual factors. considers the source of funds, including both original
source of wealth and current business practices and/or
As funders, i f we do not actively fight discrimination, investment policies, the funder’s reputation, and alignment
we in eff ect support unjust systems. We seek to with Co-Impact’s values and approach. In the past made
strengthen governments and the social compact we have the choice not to work with some funders based
between people and the state so that we can on this policy. We continue to review and refine our policy
create societies characterized by equal rights, on a regular basis and explore how to further strengthen it.
justice, f airness, and meaningful opp ortunity for all
people to secure livelihoods and build up wealth. We see how philanthropy can be both harmful and helpful,
We recognize and take inspiration from the ways in depending on how it is practiced. The very nature of
which philanthropy has historically supported the Co-Impact as a f under collaborative means that funders
development of vibrant civil societies and funded who join us are prioritizing shared values and outcomes
systems change and social movements that have over their own specific organizational or individual
helped social change leaders transform societies. recognition and relinquishing some degree of control.

Co-Impact’s Commitment to Racial Justice

(published July 13, 2020)

At Co-Impact, w e are mindful of the fact that those Similarly, in our work to influence philanthropy, w e will
with wealth have disproportionate power and privilege, seek to actively promote anti-racism and gender inclusion,
reinforced by prevailing political and socio-economic and grantmaking that addresses discrimination in all its
systems. Grappling with the reality of structural racism, forms. We look for opportunities to advocate for increased
economic and social inequality, and other forms of resources towards organizations addressing systemic
discrimination raises critical questions about the role discrimination and inequality, and that are led and governed
philanthropy has been, i s, and should be playing. by underrepresented groups. We also seek to advance the
representation and participation of leaders from the
As funders, i f we do not actively fight discrimination, w e Global South in philanthropy, and work to promote better
in eff ect support unjust systems. If we are serious about funding practices.
equity and inclusion, t herefore, o ur approach and actions
need to be actively anti-racist. Since our launch in 2017, This anti-racist approach extends to the way that we
we have been leaning into deep-seated issues of systemic function internally, a s an organization. To be part of
exclusion and inequity, and working to continuously learn Co-Impact means to actively advance equality, and to strive
and improve our practice. And we need to do much more to be anti-racist and against all forms of discrimination.
and are committed to doing so. We also know that actions In our recruitment practices, w e actively work to increase
speak louder than words. representation of people from the Global South, a nd Black,
Indigenous, and people of color at all levels among our
Across all aspects of our programs, w e apply an staff and boards, and to foster a work environment where
intersectional framework to address inequities related to everyone is respected, t aken seriously, and supported to
race and other forms of discrimination. Specifically, w e use thrive. We actively look for ways to deepen our individual
this framework to review our approach to systems change, and collective learning and growth.
including how we structure and source our grants, a ssess
proposals, award grants, s upport partners, s trengthen As we seek to apply these practices, w e know that some
organizations, m easure success, and share lessons. We will remain incomplete. We continue to grapple with
will fulfill our commitment to make 100% of our country- how we can do better and will periodically review and
level anchor grants to organizations rooted in the Global strengthen our commitments. We regularly seek feedback
South and at least 50% t o organizations led by women. and listen with care, internally and externally, s o that we
And we actively seek to advance Black, I ndigenous, and can continue to learn and improve. This feedback, a nd
people of color and from other historically disadvantaged our response to it, w ill be reflected in an annual report
constituencies in leadership at all levels, e specially in senior that we share publicly.
management and governance.

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By collaborating with funders on systems change The structure and representation of our governance
initiatives where the role of government, m arkets, is an essential part of redistributing power. We are
and strengthening local governance are central to our strengthening our work to advance the representation
approach to change; where we listen, learn from, and and participation of women and leaders from the
support locally rooted organizations and coalitions to Global South in philanthropy. As we adapt our
lead and drive the work; and where we actively organizational model to encompass multiple funds,
encourage the collection of feedback from — and we are looking to adjust our governance model to
agency of — the communities and constituencies being require at least 50% r epresentation of non-funder
served, we believe we can work towards a model of subject experts, drawing from the Global South and
better philanthropic practice. who identify as women to guide strategy and high-level
decision making.

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Our Approach to Collaborative Philanthropy Fit for Supporting Systems Change

We strive to support our partners in a include an earmarked amount (t ypically up to

US $50 0,000 over 5 y ears) for strengthening
respectful manner that is tailored to the organizational capabilities. We proactively
challenges of systems change. support our program partners to develop and
update the skills and capabilities required to run
Throughout our work, w e see program partners and organizations with ambitious systems change goals
governments as the leaders, architects, and drivers over the long term.
of the deep change they seek. We are program
partner-supportive, n ot directive. Systems 3. Supporting strategic coherence. Good strategy
are complex: s ystems-change requires a deep sits at the heart of successful systems change
understanding of contexts, l ocal economies, and initiatives. With our grant-making processes, w e
politics, and that action needs to be driven by local aim to provide program partners with the time and
leaders and organizations. space needed to clarify their strategic choices.
We support their ability to make coherent
Program partners that have local roots and/or strong decisions, including saying “no” to otherwise
relationships with ground-level actors are best placed good ideas and funding from donors when it does
to achieve — and sustain — results for the communities not align well with strategic priorities. With our
we ultimately seek to serve. funding, w e support their overall systems change
Thus, t he nature of our relationships with program strategies and associated budgets rather than
partners is key. We are mindful of the perverse restricting to specific parts of their plan –and
incentives that come into play in a lopsided “gr antor- encourage other funders to do the same.
grantee” relationship and commit to actively work to 4. Valuing partners’ time and effort. To enable
counter those: t o seek mu tual respect; t o listen well; program partners to focus on their work, w e seek
to develop an open, cu rious and supportive posture; to make our requirements simple, s treamlined,
to foster and model candor; t o solicit systematic and predictable. We aim to make our expectations
feedback on our relationships; a nd to use this and processes transparent, t hrough documents
feedback to make demonstrable improvements. like the Handbook and our open calls for concept
As funders, w e seek to live up to six key philanthropic notes. We encourage single reporting to all
practices. These apply both to good funding practice, funders on a schedule that fits the work rhythm
in general, and in supporting systems change, in of program partners. We minimize unnecessary
particular: communications requests and visits and are
considerate of our program partners’ time.
1. Being outcomes-focused and flexible. We support
program partners to achieve, and hold them 5. Encouraging learning and adaptation. Because
accountable to, key outcomes and programmatic systems change is complex and dynamic, and since
milestones. Instead of demanding a detailed we neither believe that measurement is something
plan and budget, w e ask for clear articulations that the “grantee does for the donor” nor that
of long-term goals, s pecific outcomes, and success comes from adhering to a fixed plan, w e
periodic milestones, s o that program partners encourage program partners to use data to assess
can deploy funds fle xibly towards mu tually agreed progress and make course corrections.
goals. The organizations and leaders we work 6. Behaving as true partners. Given that a tru e
with have the experience and track record to partnership is about mutual respect and trust,
make transformative change: w e see our role we set the agenda together with our program
as supporting them to exercise leadership and partners. We listen with intent and curiosity and
achieve powerful outcomes. challenge were relevant. We aim to listen more
2. Providing comprehensive support. We offer than we advise, and we provide feedback on what
significant, l onger-term grants accompanied by we have understood. We always strive for empathy.
deep non-financial support. Our major grants

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Courtesy of Yagazie Emezi/Getty Images/Images of Empowerment

Trust-based Philanthropy Give multi-year, unrestricted funding

Multi-year, unrestricted funding gives grantees the
We agree with the Trust-Based Philanthropy
flexibility to assess and determine where grant dollars
Project’s view that as grantmakers, w e have a
are most needed, and allows for innovation, em ergent
responsibility to confront the ways our sector
action, and sustainabil ity.
has contributed to systemic inequities, b oth
in the ways wealth is accumulated and in the
Do the homework
ways its dissemination is controlled. This history
is entrenched in racism, p atriarchy, and other Trust-based philanthropy makes it the funder’s
forms of opp ression, wh ich are at the root of responsibility to get to know prospective grantees, saving
every social issue nonprofits seek to address. nonprofits time in the early stages of the vetting proc ess.
As funders, w e must recognize how these
norms have shaped, informed, and influenced Simplify & streamline paperwork
our entire sector—including who is deemed Nonprofits spend an inordinate amount of time on
trustworthy, and who is not. funder-imposed paperwork. Str eamlined approaches
free up staff t ime, and pave the way for deeper
At its core, tru st-based philanthropy is relationships and mutual accountability.
about redistributing power—systemically,
organizationally, and interpersonally. Part of Co- Be transparent & responsive
Impact’s reason for being is to redress systematic
power imbalances. We believe philanthropy has Open communication helps build relationships rooted
the power to do more, and better. We employ in trust and mutual accountability. When funders model
the core values of tru st-based philanthropy in transparency, p ower awareness, and vulnerability, i t
our everyday practice, including leading with signals to grantees that they can show up more fully.
trust, c entering relationships, c ollaborating
with humility and curiosity, redistributing Solicit & act on feedback
power, and working for systemic equity. On a A foundation’s work will be inherently more successful
practical level for us, t his includes multi-year if it is informed by the expertise and lived experience of
flexible funding and other supports, s treamlined grantee partners.
applications and reporting, and a commitment
to building relationships based on transparency, Offer support beyond the check
responsiveness, f eedback, a nd mutual learning.
Responsive, adaptive, non-monetary support bolsters
Source: https://trustbasedphilanthropy.org/,
leadership, capacity, and organizational health.
accessed June 3rd, 2 021

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Our Approach to Working with Philanthropists and Foundations
We seek to grow the funding available for Convening, engaging and learning together
systems change by offering new ways for • Engage with the initiatives. We organize carefully
funders to pool resources. designed learning visits (usually once per year) as
well as provide streamlined reporting and updates
Co-Impact does not have an endowment or its own on the grants usually twice a year.
funds; o ur funders come together to pool resources
towards a s hared purpose. Across all funders, w e • Targeted convenings and learning opportunities.
actively seek to promote the practices of collaborative We arrange intimate gatherings for funders to
philanthropy fit for supporting systems change. Funders expand their knowledge and network hosted
join the collaboration with a desire to maximize the around key events around the world, and we
impact of their funding and learn and share with one provide a series of learning events, f ocused on
another, and the benefits are outlined below. Our learning about the work of program partners and
leading funders are listed on our website. how to be an eff ective funder.

• Dedicated platform. Co-Impact funding partners

Benefits of funding through/working gain access to an online private platform where we
with Co-Impact share weekly posts including updates on program
Through Co-Impact, p hilanthropists, f oundations, partners, s ector news, e vents and reports, and
corporations, and other funders are able to maximize our funding partners share more broadly about
the impact of their gi ving, wh ile also taking advantage their work.
of numerous opp ortunities to convene, e ngage, and
• Additional engagement. We invite funding partners
learn together.
to events and learning opportunities organized
Maximizing the impact of funding by Co-Impact program partners and our wider
network. Funders also have the opportunity to
• Increase operational efficiency. Our pooled- invite Co-Impact partners to their activities.
funding model encourages collaboration among
funders that can help to reduce or eliminate
the transaction costs associated with multiple
processes for sourcing, vetting, m anaging, and
evaluating systems change initiatives.

• Decrease risk. By pooling resources with others,

funders can participate in more and deeper work,
and reduce the risk in their portfolio. It also
minimizes the risk of duplicating eff orts.

• Benefit from Co-Impact’s ongoing support for

the portfolio of initiatives. We support our
program partners to achieve lasting impact
at scale, s trengthening their capabilities,
relationships, approaches, and learning.

• Leverage financial and non-financial expertise.

Social change organizations require different
kinds of supports from a range of sources.
Co-Impact’s support can help program partners
attract additional funding for their core eff orts.
We also help aggregate and curate expertise
from funders and independent sources, and
makes it accessible to our program partners
as needed.

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