What's Happening?
The Ford Foundation's Building Institutions and Networks (BUILD) program, initiated in 2015, has allocated $2 billion over 12 years to provide multi-year, flexible grants aimed at institutional strengthening. Since 2016, the program has distributed $1.85 billion in grants to over 560 organizations across 47 countries. The initiative focuses on enhancing financial resilience, leadership support, and security among grantees. A recent evaluation conducted with NIRAS highlighted that 83% of grantees reported significant mission impact due to BUILD's support. Despite some challenges, such as uncertainty about future funding, the program has been pivotal in advancing Ford's strategy of complex social change, characterized by long-term goals and adaptability.
Why It's Important?
The BUILD program's approach to unrestricted, multi-year funding is significant as it challenges traditional philanthropic models that often rely on project-based support. By providing flexible funding, Ford enables organizations to focus on their missions rather than adapting to external priorities. This model promotes financial resilience and strategic alignment, allowing grantees to pursue long-term goals without the pressure of annual grant cycles. The success of BUILD could influence other philanthropies to adopt similar practices, potentially transforming the funding landscape to better support complex social change initiatives.
What's Next?
Ford Foundation plans to continue its commitment to BUILD, with over 90% of its current $1 billion allocation expected to be committed by the end of the year. The foundation aims to improve transition processes for grantees exiting the BUILD program and enhance communication with program officers. Ford also advocates for broader adoption of BUILD-like principles in the philanthropy sector, encouraging funders to provide consistent, unrestricted support aligned with their risk profiles. This ongoing advocacy may lead to structural changes in how philanthropy supports nonprofit organizations.
Beyond the Headlines
The BUILD program highlights the ethical dimension of trust-based philanthropy, where funders place significant trust in grantees to use resources effectively. This approach requires a shift in mindset from traditional metrics-driven funding to a more flexible, adaptive model. The program's success underscores the potential for philanthropy to drive systemic change by empowering organizations to address complex social issues with greater autonomy and resilience.
