Supporting capacity strengthening as a funder

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Questions and Answers

What three aspects of a partner's change process might a funder influence?

  • Motive, means, and opportunity (correct)
  • Motivation, resources, and evaluation
  • Vision, strategy, and tactics
  • Planning, implementation, and review

When funders provide capacity-strengthening services directly, what is a common focus area?

  • Resource mobilisation and income generation
  • Grant management and compliance (correct)
  • Strategic planning and long-term vision
  • Leadership development and team building

What is a key benefit of enabling partners to purchase their own capacity-strengthening services?

  • It increases partner ownership and control (correct)
  • It provides better quality services
  • It aligns funder and partner goals
  • It reduces costs for the funder

What is the nature of change supported by capacity strengthening?

<p>A gradual and ongoing evolution (A)</p> Signup and view all the answers

What is meant by 'supporting the opportunity for change' in the context?

<p>Creating an environment and conditions for change to happen (B)</p> Signup and view all the answers

What can a funder do to promote partner ownership of the change process?

<p>Resource the partner to acquire their own capacity strengthening services. (C)</p> Signup and view all the answers

What is an action a funder can take that signals that they are 'monitoring and learning' during a change process?

<p>Paying attention to the process without taking control of it (C)</p> Signup and view all the answers

What does the text imply by stating, 'Change is not parachuting in a consultant for two days'?

<p>Change requires a long term approach. (A)</p> Signup and view all the answers

Why is it important for funders to regularly inquire about the progress of capacity building?

<p>To subtly remind partners of its ongoing importance. (A)</p> Signup and view all the answers

What is a crucial element for funders to acknowledge when supporting capacity strengthening?

<p>That capacity strengthening seldom happens by arbitrary project deadlines. (C)</p> Signup and view all the answers

What is a primary reason why many organizations struggle to change, as mentioned in the text?

<p>Being too busy with implementing their core programs. (D)</p> Signup and view all the answers

Based on the text, why should funders collaborate with each other on capacity strengthening?

<p>To avoid contradictory demands that overwhelm partners. (B)</p> Signup and view all the answers

What issue is raised regarding grant making systems?

<p>Restrictive, short-term funding processes often undermine capacity building. (C)</p> Signup and view all the answers

An NGO leadership spends 50% of its time on donor initiatives because of:

<p>Too many capacity strengthening programs from various donors. (A)</p> Signup and view all the answers

What should programme grants do with regard to capacity changes?

<p>Encourage and even incentivize the desired capacity changes. (B)</p> Signup and view all the answers

What practice in grant funding processes is most likely to hinder capacity strengthening?

<p>Short-term and burdensome reporting requirements. (C)</p> Signup and view all the answers

What is the main disadvantage of annual project funding, according to the text?

<p>It discourages investment in necessary long-term organizational changes. (A)</p> Signup and view all the answers

What is meant by the term 'starvation cycle' in the context of civil society organizations?

<p>A pattern of under-investment in administrative functions, leading to a cycle of poor financial reporting and low overhead expenses. (A)</p> Signup and view all the answers

Which approach involves funding the organization rather than specific projects and allowing them to allocate resources based on their strategy?

<p>Core support. (B)</p> Signup and view all the answers

What is a primary benefit of providing 'core support' to partner organizations?

<p>It provides partners with flexibility to invest in organizational development and cover overhead costs. (D)</p> Signup and view all the answers

What does 'true cost funding' seek to address?

<p>The 'starvation cycle' by funding both direct and a fair portion of indirect project costs. (A)</p> Signup and view all the answers

Apart from direct project costs, which of the following can be covered under 'true cost funding'?

<p>A combination of financial management, safeguarding, people management, office, and transport costs. (C)</p> Signup and view all the answers

What is the minimum duration that USAID concluded is necessary for genuine capacity strengthening?

<p>10 years. (D)</p> Signup and view all the answers

What percentage of indirect costs do the MacArthur Foundation now allow to their partners, according to the text?

<p>29%. (A)</p> Signup and view all the answers

Flashcards

Influencing the partner's motive for change

Funders can play a role in encouraging partners to change by asking questions that highlight potential areas for improvement, like safeguarding or strategy. This prompts partners to consider their own needs and prioritize change.

Influencing the means for change

By working with partners, funders can help them analyze the change process, set priorities, and develop plans for capacity strengthening. This active collaboration aids in shaping the means for change.

Providing access to capacity strengthening services

Funders can directly provide access to capacity strengthening services, such as training programs or resources, to enhance partners' capabilities. These services often focus on areas like compliance, grant management, resource mobilization, communication, and leadership.

Enabling partners to purchase capacity strengthening services

Granting partners the freedom to choose and pay for their own capacity strengthening services empowers them and fosters ownership of the change process. This could involve specialized training or consulting services.

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Monitor and learn, with patience

Funders can foster an environment of trust and encourage organic change by observing and supporting partners' efforts without overly interfering in their process. This requires patience and recognition that change often happens gradually.

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Aligning programme grant-making with capacity strengthening

Aligning grant-making with capacity strengthening ensures that funding decisions are driven by a holistic vision that considers the long-term growth and sustainability of partner organizations. This approach goes beyond simply funding projects and prioritizes the strengthening of core capabilities.

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The importance of core support

Providing core support to partners allows them to invest in essential areas like administration, staff development, and infrastructure, rather than relying solely on project-specific funding. This helps build a resilient foundation for sustainability.

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Taking the true costs of operating into account

Taking the true costs of operating into account during funding decisions ensures that partners receive sufficient resources to effectively meet their needs. This acknowledges the genuine financial demands of running a sustainable organization.

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Avoid Short-Term Deadlines

Funders should focus on long-term capacity strengthening rather than demanding immediate results. This includes ensuring funders don't rely on arbitrary deadlines that could limit the partner's ability to make substantial and lasting change.

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Account for Partner Time

Funders need to understand that many partners are already busy implementing their core programs and external events may further impact their available time. This makes it crucial for funders to not add unnecessary burdens.

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Collaborative Funding

Funders should encourage collaboration and coordinate efforts with other donors to avoid overwhelming partners with contradictory demands. This helps to ensure resources are used effectively and efficiently.

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Minimize Initiative Overload

Partners are often burdened by numerous donor-driven initiatives, requiring them to allocate valuable time and resources. To avoid this, funders should collaborate on capacity-building efforts, minimizing the need for multiple, separate initiatives.

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Grant-Making Impact on Capacity Strengthening

Funders should be aware that their grant-making procedures and conditions can significantly impact the effectiveness of their capacity-strengthening efforts. Restrictive grants, short-term cycles, and complex reporting requirements can undermine the intended results.

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Incentivizing Capacity Strengthening

Funders should design grants that actively incentivize capacity changes in their partner organizations. It's essential to move beyond simply providing funding and focus on helping partners develop their capabilities.

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Streamline Reporting Requirements

Partners often struggle with cumbersome and time-consuming reporting demands from funders. This can prevent them from focusing on their primary mission and hinder their capacity development. Therefore, funders should strive to streamline reporting processes and make them more efficient.

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Support Sustainability

Funders should design their grant programs to foster long-term sustainability within their partner organizations. This means avoiding short-term projects and instead focusing on supporting initiatives that can generate lasting impact and contribute to sustainable growth.

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Multi-year funding

Providing long-term funding for organizations to allow them to make sustainable changes and invest in capacity building. This approach differs from annual project funding which can lead to short-term planning.

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Starvation Cycle

A debilitating trend of under-investment in organizational infrastructure caused by low overhead budgets and donor expectations. This cycle undermines long-term sustainability and growth.

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Core Support

Funding provided to organizations to cover their core operational costs, including administration, infrastructure, and staff development, rather than specific projects.

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True Cost Funding

This approach covers all direct and indirect costs associated with a project, including a fair portion of administration and overhead, ensuring sustainable operations.

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Capacity Strengthening

Services and programs designed to help organizations improve their skills, knowledge, and systems to operate more effectively and achieve their goals.

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Transparent Financial Reporting

Financial reporting that accurately reflects all costs related to a project, including overhead and indirect costs, providing a more accurate picture of the true cost of operations.

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Grant Maker's Role in Capacity Strengthening

Grant makers can play a significant role in supporting capacity strengthening by helping organizations identify and access essential resources and services.

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Grant Makers Fostering Sustainability

By providing funding for core support and true costs, grant makers can help organizations break the starvation cycle and invest in sustainable development.

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Study Notes

Supporting Capacity Strengthening Strategically

  • Funders can influence partner motivation for change simply by asking good questions about safeguarding and strategy.
  • Funders can help partners define change processes and priorities.
  • This involves creating a scope of work or a capacity strengthening plan.

How Funders Support Change

  • Providing access to capacity strengthening services: Funders can support capacity strengthening by providing resources, signposting to relevant services, or even running training programs. This is sometimes related to grant management.
  • Enabling partners to purchase capacity strengthening services: Funders can empower partners to pay for these services using their own funds (core or programmatic), which fosters greater ownership. Grantmakers might offer dedicated funding windows for capacity building.
  • Monitoring and learning with patience: Funders should observe the change process without interference, emphasizing the gradual nature of change ("drip-drip evolution"). Regularly asking about progress is helpful, and lessons learned can be valuable.
  • Collaborating with other funders: Collaboration helps ensure partners aren't overwhelmed with contradictory demands and promotes shared incentives.

Aligning Funding Policies and Practices

  • Multi-year funding: Long-term funding encourages sustained capacity strengthening efforts, as opposed to short-term perspectives.
  • Core Support: Investing in core support (infrastructure, people, etc.) is vital for long-term sustainability, preventing an unsustainable cycle of under-investment in organizational infrastructure.
  • Funders can support capacity strengthening by adjusting grantmaking systems to support rather than hinder these efforts (e.g., by reducing burdensome reporting).

True Costs and Core Funding

  • True cost funding: Funders can address the "starvation cycle" by covering all direct costs and indirect costs of operation (administration, safeguarding, etc.) in projects.
  • Core support: This is a way to fund the organization rather than just the project, allowing partners to manage their funding effectively, and encourages capacity strengthening.

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