The power of SDG 17: collaboration as the base of a resilient future

The article was originally published on the website ‘Um Só Planeta’ 

by Guilherme Sylos, Prospection Director at IDIS; and Marcel Fukayama é  Co-founder of Sistema B Brasil and Member of the Board at IDIS.

Collectivity has always been an important value for society’s advancement. No wonder, it is part of the popular imagination in children’s tales and fables and through sayings like ‘unity makes strength’. It is not surprising the almost intuitive effort of adults to teach young people from an early age the importance of collectivity, as life in society is intrinsically linked to collaboration and mutual support. That principle, as basic as it may sound, needs to be constantly reinforced so that we can reach common resolutions for shared problems.

The United Nations (UN) considered this when defining the seventeen Sustainable Development Goals (SDGs). The concept is heavily reflected in SDG 17 – Partnerships for the Goals, which highlights the importance of partnerships as a means to accelerate and ensure sustainable development. It is precisely this last SDG that underlies and strengthens all the others.

However, data from the Brazilian Institute of Geography and Statistics (in portuguese, Instituto Brasileiro de Geografia e Estatística – IBGE), reveals that, of the 24 indicators monitored by Brazil related to SDG 17, only six have been fully elaborated so far, while thirteen of them are under development or analysis. With only six years left to achieve the goals of the 2030 Agenda, partnerships could be our answer to find part of the missing solutions by combining resources, knowledge, and experiences.

Creating connections between governments, companies, and organized civil society generates the strength to face challenges that would be insurmountable individually. Let’s consider, for example, strategic philanthropy. As the name itself suggests, it involves the strategic allocation of private resources for public benefit. These resources strengthen initiatives and solutions that would not always be feasible solely through state efforts, in addition to being more flexible, allowing the use of experimental approaches and the development of creative solutions to complex problems. The practice, in itself, is already very powerful when it comes to social impact.

It turns out that strategic philanthropy can be even more effective when supported by strong partnerships with other sectors, rather than remaining closed in on itself. Collaborations enhance the impact made by initiatives, making them more long-lasting and sustainable. 

While governments hold regulatory power and public sector resources, philanthropic organizations contribute with a strategic view, agility, and private resources that promote social impact. Civil society, on the other hand, brings a direct perspective from the community, guiding the final allocation of resources and ensuring that solutions are truly aligned with the needs of the population.

One example that highlights the success of this type of partnership is Together for Health. Launched in 2023, the Program is an initiative of the National Bank for Economic and Social Development (BNDES) managed by IDIS. In partnership with private donors, the Program seeks to gather funds to support and strengthen the Unified Health System (SUS) in the North and Northeast regions of Brazil. The perspective is that, by 2026, approximately BRL 200 million non-reimbursable (BRL100 million from partners and BRL100 million from BNDES) will be allocated to health projects that aim to benefit care activities for populations living in these regions of the country, including primary care services; medium and high complexity; urgent and emergency services and diagnostic support. For every real donated by other institutions, BNDES contributes with another real, in a matchfunding style.

The challenge is not simple, since managing these many stakeholders is a complex operation. To achieve the goal of Together for Health, it was necessary to create multiple connections between the private initiative, the public sector (Ministry of Health, municipal and state health departments) and civil society organizations that will be responsible for executing the projects supported by the Program. So far, the program has already allocated approximately BRL 96 million in resources, aimed at three projects that, together, will reach more than 300 cities.

Another great brazilian example of collective action and networking on behalf of structural changes is the global Catalyst 2030 movement, composed of about 127 social entrepreneurs and innovators committed to improve the achievement of the Sustainable Development Goals (SDG). In Brazil, the group joined in 2023 the ‘National Strategy Committee for an Impact Economy ’ (in portuguese, Comitê da Estratégia Nacional para Economia de Impacto – ENIMPACTO), to which it presented a proposal letter of how the network can contribute even further with public policies and the strengthening of the solutions. 

An additional example highlights how the partnership between the corporate sector and the social sector can create new paradigms. In 2023, three B Corps: real estate developer MagikJC, insurance company Gaia Group and venture builder Din4mo, created the Organized System for Affordable Housing (in portuguese, Sistema Organizado para Moradia Acessível – SOMA), a non-profit organization that aims to offer social housing in urban centers.

The project has raised BRL15 million in an operation in São Paulo’s Stock Exchange Market (B3) in a real estate receivables certificate (in portuguese, certificado de recebível imobiliário – CRI) with investors such as Gerdau, Votorantim, Dexco, Movida and P4 Engenharia. The resources raised enabled the construction of a building in Largo do Arouche and is now providing social living services to vulnerable families. 

We must recognize the essential role of joining forces and resources as well as collaborative work so that we can move towards a more inclusive, equitable and regenerative future.

Systems Change Funding: Lessons from Funders in Brazil

On 16 December 2022, IDIS and Catalyst 2030 co-hosted the third in a series of global conversations for funders on the future of funding systems change (read about the first salon and second salon). This series brings together funders within a country or region to share context specific feedback on the ten principles in the Urgent NGO Letter.

The Letter, led by Catalyst 2030 members, gained over 1,100 signatures from 80+ countries and marks a significant call from the social sector to shift funding practices globally. It outlines ten key calls for funders to consider in their grantmaking practices, including: giving multi-year, unrestricted funding, investing in capacity building, and creating transformative rather than transactional relationships. Read the full list of principles in the letter here

This Salon assembled Brazilian philanthropists and funding organisations to discuss how these principles could work in practice, and the impact they would have on Brazilian philanthropy and civil society. We are hugely appreciative of all of those that participated in this discussion and who are leading the way in open and inclusive dialogue to improve philanthropy for all. 

 

Here are five key takeaways from the conversation:
 

Recognise the impact of national context  

Grantmakers  usually have specific guidelines for their social investment. While it could be read as a sign of transparency, it also limits Brazilian funders’ ability to provide unrestricted and flexible funding. This restriction affects both funders and grantee-partner’s ability to embrace this principle as the sector is not currently set up to enable such flexible practices. This inflexibility also impacts funders ability to fund institutional needs or networks, as statutory restrictions require grantee-partners to follow traditional due diligence and accreditation processes.  

 

Foster collaboration across the sector

Although this challenge is not unique to Brazil, the group discussed how there is a need for greater collaboration among funders and civil society actors within the country. This requires both a behaviour and mindset shift across the sector; a move away from siloed work and towards funders and grantee-partners working in true partnership; collaborating with other funders, grantees, and cross-sector stakeholders to achieve systemic change. 

 

Offer philanthropists multiple entry points which recognise their variety

Embracing these ten principles will be a different journey for every organisation. It is important to respect the difference in maturity of philanthropies, different investment strategies, and different statutory and operational arrangements which may impact this journey. The group suggested taking into account the different entry points of each funder and evaluating it accordingly, ensuring a funder response recognises the need and strength of each funder’s progress and individuality.

 

Consider other tools (such as a rating) to help funders improve their practices 

It is crucial to consider which tools and resources we are able to provide in order to better improve funders’ abilities to embrace these principles. This could include incentivising funders in new captivating ways by, for example, using a rating and grading system to indicate their progress towards embracing these principles. This way funders would not only obtain a grade but also understand in which areas they can improve. We must acknowledge the fact that making a donation goes beyond its social value. Creating a public ranking in which companies will be acknowledged for their contributions and their “legacy” can mobilise other funders to join the movement, positioning these principles as a Brazilian innovation in the sector.

 

Recognise that this journey might take time and support funders along the way 

Philanthropy as a sector is relatively new to Brazil. It is important to recognise this and the time it will take to bring funders on this learning journey before they are able to fully adopt these principles. Therefore, the group discussed the importance of respecting each funder’s journey and celebrating progress along the way. Documenting this progress and creating a community of practice whereby funders can learn from best practices in the field, could provide the long-term support funder’s need to make this shift. This requires establishing strong ecosystems of funders who can turn to one another, share learnings, and grow as a sector. 

 

Where do we go next?

We are continuing to host Donor Salons to gather feedback from funders in different country and regional contexts. Our next stop in this journey is with funders in Africa. Stay tuned to hear the key takeaways from this conversation.

An Urgent Invitation to Shift Funding Practices

Catalyst 2030, a global network that works to make the world better and fairer for all, has launched an open letter aimed at donors and funders of non-profit organizations with an appeal for changes in their practices, making them more effective and improving sustainable social impact.

The action aims to gather 1,000 signatures worldwide, drawing attention to this important issue. As of May 25th, more than 500 organizations from 60 countries have signed the petition.

We at IDIS signed the letter and invite you, a member of a non-governmental organization, to join us in this call. This is an opportunity to accelerate social change by making financing practices more effective for the sector.

“To have any hope of making the world a better place by working towards achieving the UN Sustainable Development Goals (SDGs), we must more effectively address the root causes of problems through transformative changes in systems. A growing number of funders and organizations have realized that now is the time to advance global progress and find new ways to support change by changing current practices and norms of funding in the social sector.” Catalyst 2030. #ShiftingFundingPractices

Read the full letter

We are now in a stage of our civilizational journey where our world faces a cascading and interrelated set of global challenges that threaten the future for people and the planet. From endemic poverty, racial and gender inequity, species extinction, and deforestation, to growing fascism, and the climate crisis, the combination of these co-occurring and overlapping challenges signals that we urgently need to fundamentally transform the entrenched systems underlying these major problems.

To have any hope of achieving the UN Sustainable Development Goals (SDGs) and reversing the destructive trajectory facing people and the planet, we must more effectively address root causes of complex problems, rather than treating symptoms. This is possible if we transform policies, practices, customs, mindsets, power dynamics and resource flows to achieve a lasting impact on a local, national, and global level. This is the work known as systems change. It is a comprehensive approach to social change that seeks to address the complex, large-scale, and deep characteristics of social issues.

A key aspect of systems change is sustained collaboration. True systems change occurs when multiple players across sectors, disciplines, and social groups – including funders and movement leaders – work together towards common goals over extended timeframes.

While we encourage funders to explore different opportunities to finance projects that can lead to social good, including those that offer some financial return to investors, achieving effective systems change, particularly the many aspects that need grant funding, will require a powerful shift from traditional philanthropic approaches where:

  1. funders tend to rely on sources of expertise to understand social impact that may not center the leadership and lived experience of those who are closest to the issues we seek to address;
  2. most funding goes toward alleviating symptoms of failing systems rather than towards the longer-term work of understanding, addressing, and mobilising change to address root causes;
  3. project-specific funding is given in short-term allotments, which also often involves excessive paperwork, transactional power dynamics, and an overreliance on short-term metrics to evaluate success; and,
  4. application processes and criteria can lead to unhelpful competition among organisations instead of incentivising the types of collaborations that are needed to change systems.

An increasing number of funders and organisations are discovering that there is a real-time opportunity to advance global progress and model new ways of supporting change by shifting current funding practices that finance the social sector. These needed shifts span across multiple types of funders, including funding from private philanthropy, governments, and multilateral bodies.

The following principles outline what we, a large group of civil society organisations and systems change innovators, as well as many philanthropic thought leaders and funder allies, believe to be the most critical and effective practices funders need to adopt as we tackle the complex problems facing our world today.

We invite you to consider adopting the transformative grantmaking practices below. Given the powerful role of funders and donors in influencing the work and scope of organisations working on systemic issues, these shifts will better enable and empower the social sector and will foster multi-sectoral collaborations that work towards the types of systems changes that are urgently needed.

Principles

  1. Give Multi-Year, Unrestricted Funding: Addressing root causes of inter-connected systemic problems requires continuous adaptation and learning over the long-term. Trusting organisations with general operating funds for multiple years (at least three to five years, and preferably longer) allows them the flexibility to take the necessary long-term, iterative approach to tackling big, complex, systemic problems. This type of flexible investment frees up organisations to adapt to changing conditions and enables nonprofits to focus on their mission-critical work rather than focusing on where next year’s grants may be coming from.  If a funder can only offer restricted project grants, make them multi-year and ensure they cover the actual direct (including staff salaries) and indirect costs of delivering impact (such as office rent and equipment).  Consider providing more than enough for these costs to enable nonprofits to grow a surplus and reserves.
  2. Invest in Capacity Building. Good ideas are not enough. Help your programme partners to build core organisational capacity and be responsive to what they say they need most. Nonprofits need to build a diverse set of capacities, either in their organisation or through their partners, to bring collective strength and sustainability to their work over time.  Funders who put restrictions on overhead costs constrain organisations ability to achieve optimal social impact.
  3. Fund Networks: Networks are tools in our social change toolboxes that support stakeholders to take collaborative action and to develop strategic initiatives that include multiple players who are part of the solution.  Networks are also an excellent source for capacity building for those participating, incentivising collaboration, experimenting with new approaches, and allowing course corrections to happen quicker and more efficiently.  Invest in infrastructure and coordination capacity for organisations to collaborate, build networks, and work together more efficiently and effectively.
  4. Create Transformative Rather than Transactional Relationships: We need to evolve from the corrosive power relationships that have characterised many interactions between funders and grantees to date. To achieve transformational change, we need to practice a partnership model where we all bring assets and gifts to the change at hand. Money is one of those assets, as is community knowledge, people power, relationships, expertise, economic power, and political clout. Effective systems change work relies on all of these assets. It also requires shared sensibility for listening, learning, humility, and collaboration. Funders can give up some of their power to build our collective power for impact.
  5. Build and Share Power: Non-profits and movement leaders have traditionally not been present in rooms where governments and corporations make big structural decisions. This is especially true for black-, indigenous-, and people of color-led organisations, as well as those led by women, young people, and people with disabilities. Funders can help rebalance these inequities. They can achieve this by sharing power with and building power for the social sector, giving more resources directly at the local level to organisations with local leadership and local ownership, and making more robust investments in organizations led by proximate leaders of color.  More inclusive decision-making structures and spaces need to be designed. These spaces should encourage general operating and capacity building support to help leaders win policies and practices that advance the SDGs in their arena of influence.  It is also important that funders are open to funding newer, early-stage social entrepreneurs and young entrepreneurs.
  6. Be Transparent and Responsive: Bring humility to your grantmaking and recognise the power imbalances in your relationships with programme partners. Communicate your equity journey with your grantees. Be crystal clear about your priorities and expectations. Be swift to say no if it’s not a good fit, and respond in a timely manner. The urgency of our challenges requires no less of us all.
  7. Simplify and Streamline Paperwork: Nonprofits spend too much time writing grant proposals and reports to satisfy funders’ requirements, while doing the difficult work of systems change and meeting regulatory conditions. Funders can help give time back by streamlining application processes, coordinating with other donors on due diligence and reporting, and aligning reporting with a systems change mindset. Reporting on systems change work is often more complex and nuanced than listing short-term outputs tied to individual projects.  As additional methods of evaluating impact, funders can be more open to stories as examples of progress. They can ask grantees what shifts in the system they are seeing over time, and they can talk to grantees about what’s working in their efforts and what is not.
  8. Offer Support Beyond the Check: Funders have more to offer than money alone. Be a connector. Make helpful connections for grantee partners to other possible funders and peer organisations, be curious and responsive to their needs, and create opportunities to showcase them and their work in channels to which you have access.  Support networks that build strong connections and provide platforms for collaboration rather than competition.
  9. Collaborate With Other Funders: Just as non-profits need to weave together networks to achieve scale, funders need to build ecosystems of investors in systems change work. Share knowledge, connections and expertise with other donors; enhance efficiencies through coordinated action; open doors for your grantees and walk through them together as partners. Connect with funders that are investing in similar areas and hold one another accountable for thinking broadly about your funding ecosystem and being intentional to include leaders and organisations that have historically and systemically had a hard time accessing funds from donors.
  10. Embrace a Systems Mindset in Your Grantmaking: Funders should embrace a systems change mindset with their grantees to address their chosen priority problem(s). The overall goal is to meaningfully shift the conditions that hold the problem in place.  This involves identifying, understanding, and addressing root causes of the problem(s) you are tackling.  This mindset also extends to thinking differently about evaluating and understanding impact over a longer-term horizon.

Many funders can point to some of these principles where they are leading or making progress.  However, partial progress, while worthwhile, won’t be enough if we are to respond to the urgency of the complex needs facing us.  We call upon philanthropic sector leaders and different types of funders to commit to adopting all of these principles in meaningful ways within their organisations, so that our shared commitment and ability to achieve lasting social change is accelerated.

Specifically, we ask for funders to commit to the following concrete, practical steps to show your support for these principles:

  1. Take the Funder Diagnostic on funding systems change, found here https://www.notion.so/Systems-Change-Funder-Self-Assessment-545c4fe1196f4fca8247d5060b055481. This is a comprehensive tool designed to support and inform the journey of shifting towards more systems change philanthropy. Develop concrete actions you will take based on the recommendations in the tool, work to improve your score over the next year or two, and commit to re-taking the Funder Diagnostic again to assess your progress.
  2. Make shifts towards the key elements of funding systems change, such as increasing funding given to groups that use systems change approaches, increasing the percentage of your grants that provide unrestricted core support, and increasing the percentage of your grants that are multi-year funding commitments.
  3. Revisit and streamline your grant-making processes. Identify at least one way that you can incorporate more perspectives or information from proximate leaders to help you shape your grant decisions.
  4. Hold yourself accountable to these principles by inviting feedback from your grantees on a regular basis, either through an anonymous grantee survey that you develop, a Grantee Perception Report, a staff survey, or other feedback mechanisms that you create to invite input.

*Many of the principles in this letter are derived from three sources: Embracing Complexity, a collaborative report authored by Catalyst 2030, Ashoka, Co-Impact, Echoing Green, the Schwab Foundation for Social Entrepreneurship, the Skoll Foundation, and McKinsey & Company that reflected the perspectives of many social entrepreneurs across the world; The Trust Based Philanthropy Project; and principles of Racial Equity-Based Philanthropy.

We look forward to working with you our shared journey to create lasting solutions to many of the biggest problems facing people and the planet today.

  • Signed by 1,191 organisations.