This piece originally appeared on the Devex website.
By: Diana Ohlbaum, Independent Consultant and former Deputy Director of USAID’s Office of Transition Initiatives
It’s not big. It’s not shiny. But there is a promising train of sustainable funding for local priorities, and it has been largely missing from discussions of country ownership and financing for development. What is this overlooked and underappreciated engine of growth? Community philanthropy.
Community philanthropy refers to foundations and other social enterprises that are funded and controlled by members of the communities they serve. They raise significant amounts of money locally from individuals and businesses, spend money locally through small grants for worthy projects, and are held accountable by local communities. You can’t get any more “locally owned” than that.
As an example, a women’s fund in Nepal, known as Tewa, has mobilized contributions from 3,000 Nepalese donors to invest in local grass-roots institutions. Its model of emphasizing small philanthropic gifts has taught women how to be responsible donors as well as grantees, and given them the tools to overcome dependency and powerlessness.
Likewise, Kenya’s Makutano Community Development Association undertook a long-term commitment to building community capacity, resulting in the construction of a road, nine dams, 17 wells, 162 pit latrines and a secondary school, as well as putting 10,000 acres of land to productive use.
While international donors, including the U.S. Agency for International Development, routinely look for local organizations that can distribute and administer “umbrella grants,” community philanthropy is something different. These foundations are not the fiscal and programmatic agents of foreign funders, nor are they simply service providers. They are grantors in their own right…