As demand for services rises and funding becomes harder to get, organisations and funders must explore different methods to maximise the use of shared resources. One method is an “open and trusting” approach to grant-making, which focuses on improving efficiency, strengthening relationships, and amplifying impact.
This concept is being explored in-depth by the Institute for Voluntary Action Research (IVAR), which has worked with 30 public agencies across three networks — London Funders, Yorkshire Funders, and the Scotland Funders’ Forum — to develop practical tools and frameworks to guide the sector.
Funders who take a more open, trusting, and less complicated approach to giving grants can better support charities, especially in crises. By reducing paperwork and focusing on what charities really need, funders can build stronger relationships and help organisations achieve their goals with more freedom and flexibility.
Learning opportunities
To support funders in adopting this approach, IVAR has developed a set of practical resources to guide them. These resources, accessible on their webpage , offer valuable insights for funders looking to improve the efficiency and effectiveness of their grant-making processes.
Funders interested in learning more about this approach can attend a webinar on Tuesday, 12 November, featuring case studies from organisations that have successfully adopted these methods.
Updated Charity Commission Guidance on Decision-Making
The Charity Commission has published updated guidance on decision-making, providing trustees with clearer insights on how to navigate complex and strategic choices. The guidance details seven key decision-making principles that trustees should follow:
- Act within your powers.
- Act in good faith and in the interests of the charity.
- Ensure you are sufficiently informed.
- Consider all relevant factors.
- Identify and disregard irrelevant factors
- Manage conflicts of interest
- Must ensure their decision is within the range of decisions that a reasonable trustee body could make
These principles are a reminder of the critical role trustees play in steering charities through challenging times. In addition to following the charity’s governing documents, trustees are encouraged to carefully document their decisions, ensuring accountability and transparency. By following these principles, trustees can make informed and strategic decisions that align with the charity’s mission, particularly when resources are stretched thin.
Both the IVAR resources and the Charity Commission’s guidance highlight the need for a forward-thinking, collaborative approach to funding and governance. By building trust, improving efficiency, and strengthening the decision-making processes, funders and charities can work together to navigate the increasing need and limited funding and creating a greater impact on the communities.