Australian Philanthropy Shifts Focus to Strengthen Organisations, Not Just Fund Programs
Sydney, Australia – A growing movement within Australian philanthropy is prioritizing the long-term health and resilience of not-for-profit organisations, moving beyond conventional project-based funding to embrace an “Organisational Effectiveness” (OE) lens. This shift, inspired by international models like the Ford Foundation’s BUILD initiative, aims to address systemic inequities in access to support and build a more enduring social sector.
The trend reflects a recognition that impactful programs are built on strong foundations – robust governance, capable leadership, and financial stability. Benefolk, an Australian organisation providing organisational support to the social sector, has been at the forefront of this change, distributing $1.5 million in grants over the past three years to 338 organisations, alongside deeper, tailored support to an additional 38. Over 600 charities and social enterprises have directly accessed Benefolk’s services, and 15,000 have utilized their free resources, including the Community Well hub.
This move towards OE is partially driven by evidence highlighting disparities in access to support. Recent data shows that organisations led by, or serving, Indigenous or people of color (BIPOC) are less likely to request OE support (37% compared to 51% of non-BIPOC respondents) and less likely to have previously received an OE grant (12% vs. 22%). This underscores the need for targeted and equitable approaches to capacity building.
International examples are informing the Australian approach. The Ford Foundation’s BUILD initiative, a long-term, flexible funding program designed to strengthen social justice organisations, offers a compelling case study. A five-year evaluation of BUILD is publicly available,demonstrating the program’s impact. Similarly,the Richard King Mellon Foundation focuses on bolstering leadership,governance,and strategic agility within organisations.
Benefolk is actively translating these lessons to the Australian context, exploring how to integrate both wellbeing and capability building outcomes. The organisation identifies key areas of need, including navigating periods of change and challenge, where structured interventions can stabilise governance, strengthen leadership, and improve financial health.
For funders, adopting an OE lens means a essential shift in approach. Benefolk recommends:
* Investing in the whole organisation, not just specific programs or projects.
* Offering flexible, long-term support to allow for capacity building, adaptation, reflection, and evaluation.
* Engaging collaboratively with intermediaries and leaders to co-create solutions.
* Building efficiency by working with organisations like Benefolk, which provide a centralized hub for support, rather than fragmented grant application processes.
* Recognising wellbeing as central to the health of leaders,organisations,and the sector as a whole.
These learnings are being shared through a new webinar series, Beyond the Grant, designed to equip funders with practical examples, case studies, and tools for meaningful conversations about organisational health and long-term impact.More information and registration details are available at https://www.philanthropy.org.au/whats-on/beyond-the-grant-webinar-series/.
Those interested in learning more can contact [email protected]
