Networks and relationships aren't the most important criteria for family foundations considering funding NGOs. That's according to a research project conducted by Think Africa and students from the Hanken School of Economics.
This spring, Think Africa teamed up with four students from Hanken School of Economics for a three-month deep dive into family foundations in Finland. Their mission? To help us understand if family foundations and offices could be the stable and flexible funding partners NGOs need.
Let's face it - the funding landscape has changed. With government budget cuts hitting civil society organisations hard, we all need to think differently about where support comes from. Many NGOs are struggling to maintain programs while constantly chasing short-term grants.
What the students discovered
From the list of 21 identified family foundations, it is clear they are open to new partnerships! They're confident about meeting increased demand and genuinely want to support impactful work. Projects involving youth and families have especially high potential.
However, there were some novel findings:
Relationships don't work like they thought - The students expected personal connections to matter. They don't - at least not in the way they imagined. Family foundations care more about the organisation’s track record than relationships. Having coffee with foundation representatives won't necessarily improve your chances.
It's all about the numbers now - Family foundations are talking more like businesses. They want "scalable" projects with "measurable impact." If you can't show your results in charts and numbers, you might struggle - even if you're changing lives.
Not really focused on long-term funding - Despite hoping family foundations would offer stable, multi-year support, the students found they mostly stick to short-term project grants. Only a few offer funding beyond one year.
From the above, the students summarised three key insights that are important for NGOs targeting family foundations:
1. Mission match is key - Your values don't need to align perfectly, but your mission must match theirs. Research each foundation's focus areas carefully before applying.
2. The three must-haves - Every foundation the students spoke to looked for the same things:
- A proven track record
- Clear expertise in your field
- Other funding partners (they rarely want to be your only funder)
3. Think like a startup - Foundations are increasingly attracted to organisations that operate like social enterprises. Consider how you can demonstrate innovation and growth potential.
Practical tips to improve chances for success
With these findings in mind, the students gave a few suggestions to improve chances of success:
Design projects backwards - Start with what foundations want to fund, then find where it overlaps with your mission. This "reverse engineering" approach increases your success rate.
Measure everything - Build systems now to track your impact in numbers. Count participants, measure outcomes, document changes. You'll need this data.
Speak their language - Use business terms in your applications. Talk about "scaling," "impact metrics," and "sustainability models." It shows you understand their world.
What’s next
While family foundations aren't the magic solution to long-term funding Think Africa hoped for, they remain valuable partners. The key is understanding their evolving nature and adapting accordingly. Fortunately, the students identified an open opportunity for NGOs. Family foundations want frameworks for long-term funding but don't know how to create them. If your NGO has research expertise, consider partnering with interested foundations to develop these frameworks together. You could pioneer the very solution you need!
The funding landscape will keep changing. But by staying informed, flexible, and strategic, we can navigate these changes together.
This research opened Think Africa’s eyes to new possibilities and strategies. Now we want to put them into action.
If you are passionate about fundraising or have experience securing grants or building partnerships, join our Fundraising team!
Think Africa needs people like you to help ensure our programs continue making a difference. Your skills could help us reach more communities and create lasting change.
Ready to make an impact? Contact us at info@thinkafrica.fi to explore how you can contribute to Think Africa's fundraising efforts.
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About this research: This blog post is based on research conducted by Isak Träskman, Kazjal Rokhzad, Lilly Schoknecht, and Salla Savola from Hanken School of Economics, in partnership with Think Africa.