Oak 1 OD Smart Investment

A strategic approach to enhancing the capabilities and effectiveness of partner organizations, aiming to improve their overall health and sustainability.

Funding strategies focused on directly supporting an organization's core functions, operations, and long-term sustainability.

The ability of an organization to withstand challenges and adapt to changing circumstances.

The capacity of an organization to operate effectively over the long term.

The ability of an organization to effectively manage its internal processes and systems such as HR, finance, and evaluation.

The effectiveness of an organization in building and maintaining positive relationships with external stakeholders such as donors, partners, and the public.

The strategic planning process focused on defining the organization's long-term goals, values, and vision.

The ability of an organization to effectively bring about positive changes in the world, aligned with its mission and goals.

Partners should have a desire for change and a willingness to overcome resistance. They also need a shared vision and some initial steps to implement it. A good amount of people actively supporting the change are necessary for taking ownership and achieving success.

OD must be integrated into the foundation's strategy and theory of change. Strong leadership support and commitment from the board are essential.

Funders should have dedicated staff focusing on OD, developing strategy, setting priorities, and providing expertise to programme staff and partners.

All foundation staff should view OD as an integral part of their daily work, contributing to the overall goal.

Consultants are crucial for executing OD, providing specialized knowledge and skills.

Organizations need to be competent and prepared for challenges. Even strong organizations can improve, and external factors like COVID-19 increase demands on civil society.

Ensuring partners' sustainability is crucial for achieving long-term impact. It's key for funders to focus on making partners financially autonomous and robust.

COVID-19, changing aid flows, and restrictive governments pose significant challenges for civil society organizations.

A neutral intermediary helps build trust between funders and grantees by fostering transparency and open dialogue and ensuring both sides have relevant expertise.

Grantmakers actively invest in building relationships with grantees through increased core funding, transparency, mutual expectations, and accepting 'failure' as a learning opportunity.

OD is an approach that encourages grantmakers to shift from rigid instructions to empowering grantees with decision-making power over projects and timelines, including consultant selection.

Despite challenges in quantifying impact, foundations recognize the value of OD and believe it leads to positive changes, even if the direct causal links are unclear.

OD's impact is often gradual and intangible, making it difficult to directly attribute specific outcomes to OD support.

The foundations are confident that OD is a worthwhile investment based on years of experience, observing positive outcomes and improvements in grantees' operations and impact.

Foundations exchange experiences and insights to learn from each other, leading to greater internal ownership, shared understanding, and ongoing improvements in their OD practices.

The five foundations encourage other grantmakers to join their learning journey and share their experiences with organizational development.