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Ford Foundation Implements Groundbreaking Funding Strategy

In a significant move to enhance global support for civil society, the Ford Foundation recently announced a strategic shift in its funding practices, committing to embed multiyear flexible funding and institutional strengthening across its entire global portfolio. This initiative, part of the foundation's broader Innovation Agenda, is aimed at empowering organizations to better navigate the increasingly complex and challenging conditions they face worldwide.

The Ford Foundation's decision comes in response to insights gained from its previous Building Institutions and Networks (BUILD) initiative, which demonstrated that civil society organizations perform best when they are offered flexible funding, receive investment in their institutional health, and are trusted to carry out their missions independently. With this new approach, the foundation guarantees hundreds of millions of dollars in predictable, flexible capital for its grantees, allowing them to focus on their crucial work without the constraints typically associated with traditional grantmaking.

Key Components of the New Funding Strategy

A Firm Foundation of Multiyear Support

A cornerstone of this new strategy is the establishment of a 50% baseline for multiyear general operating support in the foundation's annual grantmaking budget. This means that at least half of the grants provided will span a duration of three to five years, ensuring that partners have a solid foundation of financial stability while enjoying the operational flexibility necessary to adapt to changing circumstances.

Institutional Strengthening Commitment

Starting in 2028, the Ford Foundation plans to dedicate 5% of its annual program budget specifically for institutional strengthening. This commitment reflects an eightfold increase in funding aimed at enhancing the capacities of grantees. Unlike traditional funding models that often impose a one-size-fits-all approach, these resources will be tailored to meet the specific organizational needs of different grantees, irrespective of the size or type of grant awarded.

Support for the Broader Ecosystem

The foundation’s investment goes beyond its immediate portfolio. It will actively support independent capacity-building networks and technical assistance providers that offer crucial services such as legal aid, digital security, and financial support to organizations across the civil society landscape. This holistic approach aims to uplift the entire sector and ensure a robust infrastructure that can sustain social change efforts.

Leadership in Grantmaking Excellence

To steer the implementation of this ambitious strategy, the Ford Foundation has appointed Luc Athayde-Rizzaro as the director of grantmaking excellence, effective January 2027. As the current grantmaking excellence officer, Athayde-Rizzaro has played a pivotal role in shaping Ford's grantmaking practices, and his appointment signifies the foundation’s dedication to implementing these new standards consistently across all operations.

Vision for the Future

"Over the last decade, we have come to understand a fundamental truth: organizations achieve their best outcomes when funders provide them with the support they need to operate autonomously and with flexibility," stated Noorain Khan, the foundation's chief innovation officer. "This approach represents a substantial shift toward making flexible funding the norm across our initiatives."

Heather Gerken, the foundation's president, echoed these sentiments, emphasizing the importance of listening to the organization’s partners and fostering an environment where they can lead with the autonomy necessary for success. "To strengthen the very foundations of democracy, we must evolve both our funding strategies and practices," she stated.

As the Ford Foundation embarks on this transformative journey, it invites the wider philanthropic community to join it in adopting flexible, long-term support as a standard practice. The initiative aims not only to enhance the capacity of individual organizations but to fundamentally reshape the landscape of philanthropy.

About the Ford Foundation

Established 90 years ago, the Ford Foundation is an independent organization dedicated to addressing systemic inequalities and fostering a future rooted in justice. With an endowment of $18 billion and offices in multiple regions worldwide, the foundation continues to champion social change by empowering civil society and promoting democratic values. For more information, visit www.fordfoundation.org.