Accelerating Impact: The Power of Flexible Funding and Tailored Support

Eight years ago, driven by passion, I ran a social enterprise that advocated for women and young girls. In the six years we operated, I learned a valuable lesson that shaped my current career path: the funding space is unfairly skewed against changemakers. Many Funders are risk-averse, taking the easier route of working with established, often expat-led organizations with operating offices in Africa and headquarters in the West.

While implementing programs in multiple countries and impacting hundreds of women in East Africa, funding was always at the top of my mind. We wrote hundreds of proposals and often got little to no response most of the time. We also faced the additional challenge of attending top industry events and conferences, which were expensive since we needed more funding for such outreach. Unsurprisingly, this frustration drove me to focus on shifting the risk-averse mindsets of Funders by advocating for more funding and support to go to early-stage changemakers.

Today, as Network Lead for the +1 Global Fund, I support diverse changemakers representing the for-profit and non-profit sectors. The question that continues to resurface during our interactions is: What will it take to help local changemakers succeed and scale their impact? The answer is flexible funding and tailored support.

For most African changemakers, accelerators, incubators, and programs like +1 have long been seen as the solution and one of the fastest ways of growing their social ventures. The Africa Scale-Craft 2024 Report shows that organizations that have been through an accelerator considerably outperform unaccelerated ones and raise more funding within the first six months of graduating from a program — Caveat: This report mostly represents data from for-profit ventures. However, only some ventures make it past the early stage and go on to raise significant financing even after participating in an accelerator. This high attrition may be due to a mismatch in available support, limited access to the right networks, and other unique factors like the harsh macroeconomic environments in which these changemakers operate. 

So, how can we help changemakers break past these barriers? 

Social Changemakers need customized support to run sustainable organizations that can survive and thrive in their countries. However, a recurring challenge is that Funders insist that local changemakers must prove social impact and scale without providing the support needed to help them put suitable systems and structures in place. Most grants have restrictions that nearly 90% of funds be channeled to programs, leaving just 10% for overhead. These policies often lead to changemakers needlessly struggling to operate and unable to attract and retain the talent needed to scale. They also wear several hats and become chief of marketing, programs, fundraising, and operations, leading to burnout. When Funders provide more tailored support, such as longer-term flexible funding, mentorship, and organizational development opportunities, these Changemakers have a higher chance of succeeding. 

As I explored potential barriers and solutions, I spoke to two +1 Global Fund Awardees who shared their perspectives on flexible funding.

I come from a community of subsistence farmers and initially struggled to set up the company. I failed when I tried large-scale farming because I did not have the required agricultural inputs, systems, and structures. However, after receiving the initial +1 Grant of $12,000, I hired more extension officers who trained farmers in our Demo Farms, eventually leading to our expansion and growth. I also restocked our farm inputs store with improved seeds and fertilizers. Because of this, our company moved from generating $50,000 a year in 2021 to over $250,000 in 2023. We have also started a spin-off company, which now focuses on exporting surplus agricultural produce and will double our revenue in the next two years. I have seen the power of flexible funding and would encourage more donors to trust us to use funds however we see fit.” - +1 Food Security Awardee from Uganda. 

Examples like the one above show how critical flexible funding is and its potential for accelerated and unprecedented impact when made available. Connected to this, Changemakers also need access to peers, mentors, funders, and other players in the social impact ecosystem. Building social capital enables changemakers to access people and resources they wouldn’t have if they worked in silos. Unfortunately, many early-stage changemakers are excluded from meaningful conversations and meetings due to limited exposure and funding.

Promoting exchange, mutual support, and collaboration across the ecosystem is a win-win situation because it creates an environment where everyone benefits from the collective.

As grassroots changemakers, we are often disadvantaged when it comes to opportunities and meeting Funders. Operating in towns physically disconnected from major cities where most donors and other players meet means it may take longer to cultivate relationships. Joining the +1 Network has been life-changing because we now have access to opportunities we didn’t have before and can network with our peers and grow. Each +1 Awardee can tap into a flexible travel grant that enables us to collaborate, learn, network, and attend top industry events and workshops.” LID Agency, Gweru, Zimbabwe, +1 Global Fund Awardee. 

There is no silver bullet solution to the continent’s massive challenges. However, ensuring that Funders support Changemakers to acquire the right skills, networks, and financial support will bring us closer to alleviating many of these issues affecting Africa. 

Image credits: Freepik