What is flexible funding?
The term ‘flexible funding’ has become a buzzword – one which has almost as many meanings as there are types of funders. As described by Gugo Siqueira of Rede Comuá in Brazil:
“Flexible funding is polysemic – something that will vary by context – but that is a good thing. We do not want to restrict the definition of flexible funding, to ensure that all possibilities are guaranteed.”
In that vein, many different terms arose throughout the research:
It is difficult to settle on a universal definition of flexible funding, a dynamic concept that has different meanings for actors across the funding ecosystem. But flexibility is more often than not defined by several key principles:7, 8
- Long-term commitment in the form of multiyear funding that allows for organisational or movement strengthening.
- Ability to adapt funding allocations, approaches and timelines according to the changing context.
- Responsiveness and speed, allowing for any changes to be made quickly to meet needs as they arise.
- Unrestricted where possible, allowing recipients of funding to determine their own priorities.
- Accompanied by non-financial support, supporting funding recipients in their areas of greatest need.
For the pioneers, who have always funded this way, being a flexible funder is much more than what they do – it is part of who they are, and an ongoing practice. Flexible funding is therefore an identity and a philosophy as much as a funding modality, one which is often based on a worldview and mindset of trust, openness, equity and decoloniality. As Chhavi Doonga, Director of Strategy and Programs at Prospera, told us:
“Flexible funding is a political commitment rather than something technical. This is why feminist funds fund flexibly – it is in th eir make up, it is why they exist.”
This was reinforced by Gabriela Toledo, Co-Director of Fondo Semillas in Mexico (which has existed for 35 years):
“Feminist funding is practical as well as ideological.”
For many, flexible funding is therefore deeply political. It comes from a specific way of viewing power and the world. As described by Maaz Salih Idres, the Peace Direct lead for its Local Action Fund:
“Flexibility means being fully committed. A lot of power is concentrated in the funding space, including invisible power. But power without care and love and trust is reckless and vacuous. Without that depth and philosophy, what are you doing?”
As we outlined in the introduction, flexible funding is far more than a technical exercise in adaptation. It should be liberating.
It is also important to emphasise that flexible funding is not static, nor is it one-size-fits-all. It is a concept that lives and breathes and adjusts to changing contexts over time. Adopting a rigid definition of what counts as ‘flexible’ can therefore ultimately constrain the work of funders, particularly those who are at the beginning of a flexible funding journey. The funders we interviewed as part of this project clearly stated that flexible funding is something that an organisation continually aspires to – it requires nurturing and iteration.
A simple rule of thumb for assessing whether flexible funding is actually flexible is that it should be defined as such by the grantee, not the donor. If a grantee feels that they have the freedom to do the work that they want to do, in the way that they want to do it, then the funding is probably as flexible as it needs to be, even if it is not unrestricted funding.
Ultimately, what unites flexible funding organisations and individual champions is the belief that there is nothing controversial about flexible funding when you understand its multiple benefits.9
7 See Peace Direct’s report recommendations on funding: Peace Direct. (2023). Transforming Partnerships in International Cooperation. p7. Available at: https://www.peacedirect.org/wp-content/uploads/2023/10/ Peace-Direct-Transforming-Partnerships-Report-English.pdf [Accessed: 29 October 2025].
8 Peace Direct and Kantowitz, R. (2015). Radical Flexibility – Strategic Funding for the Age of Local Activism. [online] Peaceinsight.org. Available at: https://www.peaceinsight.org/reports/peacefund/ [Accessed: 12 August 2025].
9 Griffiths, D., Guizzardi, S., and Craciun, A. (2025) There’s Nothing Controversial About Core Funding. Alliance Magazine. Available at: https://www.alliancemagazine.org/analysis/theres-nothing-controver-sial-about-core-funding/