Models of flexible funding
Through desk research and in-depth conversations with a wide range of funders, we have identified the following flexible funding models: Direct Champions, Connectors, Experimenters, and Convener-Advocates. For each model, this report outlines the following: i) a snapshot description, ii) sub-categories, iii) origins and reasons for existing, iv) structural features of the model, v) internal effects of funding flexibly, vi) relationships and funding dependences, and vii) challenges and benefits.
Many of the Direct Champions we spoke to have funded flexibly for decades, and therefore form the bulk of the sub-categories and examples included in this analysis.
Connectors are more nascent, in a context where efforts to reform the international development funding system are gathering momentum.
Experimenters who experiment with the Direct Champion, Connector and Convener-Advocate models – are also less common, given the nature of the traditional funding ecosystem.
It is important to note that funders and organisations rarely fit neatly into a single model. Many move between models or operate across multiple models depending on the context, internal shifts or external pressures.
All existing and prospective funders have a role to play when it comes to funding flexibly. The detailed description of each model below highlights the structural features, benefits and challenges of each model to aid funders in deciding which approaches would best suit their capabilities, constraints and ultimate vision.