Although there is no strict formula for an effective funding collaborative, flexible groups that have the support of a regional association of grantmakers are more likely to succeed, according to a report released today by the Association of Baltimore Area Grantmakers (ABAG). The new report, Local Donor Collaboration: Lessons From Baltimore and Beyond, summarizes how collaboratives get started, what sustains them, and effective principles and practices. It was written by Alice C. Buhl of Buhl & Associates, a consultant who has produced seminal research on collaboratives in the past.
The report presents case studies of four different types of funding collaboratives affiliated with ABAG. Successful characteristics in the case studies form a roadmap for groups of funders elsewhere, said Betsy Nelson, executive director of ABAG. "ABAG has welcomed funding collaboratives for the last 10 years, making it a learning lab for understanding this still-emerging form of philanthropy," Nelson said.
The report found that flexibility is the chief indicator of success in collaborative funding arrangements. Openness to change has allowed these collaboratives to revise such items as their strategic plans, the way they make decisions, their levels of staffing, and the levels of participation required of funders in the group.
Important Starting Points
Collaboratives usually begin with three essential factors - a supportive climate, a credible champion and proper timing on a critical issue, the report noted.
- In Baltimore, funders are deeply interested in the city and in working together to solve its problems. "They are willing to put their own interests aside for the greater good," Nelson said.
- A credible champion is a second critical ingredient early on. This champion brings coherence to the idea of the collaborative, engages colleagues and provides initial resources such as energy, time and possibly dollars. Champions may be key players in the community, they may be institutions, or perhaps a nucleus of people working together. In each case they must have a vision and be able to communicate it, while involving others substantively and sharing the credit for achievements. As a champion, you must "believe in yourself, have chutzpah, and not be afraid of people telling you no," said one interviewee quoted in the report.
- Proper timing on a critical issue often means there is readiness to collaborate, perhaps because of a crisis, a need, or a void that coincides with the grantmaking interests of the champion. For collaboratives outside Baltimore, timing has typically depended on a special opportunity, such as leveraging government or other outside funding. The report cites emerging needs or interests as particularly ripe for collaboration, allowing all participants to learn about the issues together and come to agreement about funding.
Role of Regional Associations
According to the ABAG report, city-based regional associations or those focused on a small region of grantmakers are the most likely and perhaps best positioned to sponsor local collaboratives. Local connections among funders and with regional association staff tend to be particularly strong in these communities, with the potential for greater acceptance of joint grantmaking. Funding a local or regional program can also be more manageable than funding statewide efforts.
Nelson noted that hosting a collaborative has many benefits for regional associations, including raising visibility, enhancing members' networking and professional development, and bringing association staff closer to the grantmaking process and to the community.
Funding collaboratives whose experiences are described in depth in the report are the Baltimore Neighborhood Collaborative, the Maryland Service Funding Collaborative, the Environmental Funders Affinity Group, and the Education Funders Affinity Group. The document also touches on successful collaboratives in other parts of the country, including Seattle's Project Lift-Off Opportunity Fund, the Philanthropic Collaborative for a Healthy Georgia, and Chicago's Fund for Immigrants and Refugees.
Click here to download the report
