Exploring the value of community philanthropy to traditional development assistance

By: Maryanne Yerkes, Senior Civil Society and Youth Advisor

USAID’s Center of Excellence on Democracy, Human Rights and Governance

In January, USAID, the U.S. Government’s lead agency on foreign assistance, hosted the first of a series of roundtable discussions on community philanthropy (CP). This event highlighted the ways in which this approach to development, which focuses on the mobilization of local assets, can complement traditional development assistance. The roundtables are organized as part of a global development alliance (GDA) on community philanthropy that USAID and the Aga Khan Foundation (AKF) launched in September.  This GDA contributes to the larger Global Alliance for Community Philanthropy (GACP) which, in addition to USAID and AKF, includes four other private foundations and the Global Fund for Community Foundations (GFCF), which serves as the Alliance secretariat.  

The session,  entitled “Linkages Between Community Philanthropy and Civil Society Sustainability,” featured opening remarks by Neil Levine, Director of  USAID’s Center of Excellence on Democracy, Human Rights and Governance (DRG Center); Mirza Jahani, the CEO of AKF USA; and Claire Ehmann, DRG Center Civil Society and Media Division Chief. The keynote presentation was given by Avila Kilmurray, the Director of Policy and Strategy at the GFCF.  

Why is community philanthropy important to traditional development assistance?  Supporting citizens and local civil society organizations (CSOs) to mobilize their own assets for development — be they financial, human, or intellectual — can help strengthen the financial viability and legitimacy of CSOs as well as the sustainability of the civil society sector. CP approaches can also elicit new ideas for addressing complex development problems by tapping into local resources and solutions, and they can help address some of the power imbalances inherent in traditional aid by shifting resource decisions to local actors and encouraging downward accountability. CP approaches may also prove useful in countries where civil society actors are experiencing a closing of political space, and CSOs are increasingly restricted from receiving foreign funds. Being able to leverage local assets not only helps CSOs financially, but also provides them political cover as well as moral support from local communities in difficult times. Finally, alliances such as the GACP offer excellent learning opportunities given the range of partners involved and the ability to leverage global networks.

In her keynote presentation, Avila provided a comprehensive overview of CP and its history, weaving in findings from research conducted by the Alliance. Her insightful presentation and the rich discussion that followed evoked a myriad of themes and issues, including:   

• The CP field continues to evolve and is influenced and strengthened by regional variations,  including variations in the defining characteristics of CP emphasized by local actors (i.e., building community trust, creating endowments,  etc. ) and in the ways in which CP is initiated (i.e., through domestic philanthropic gifts, external funds, grassroots activism, etc.). The GACP provides an invaluable opportunity to deepen knowledge of the variations and similarities in CP approaches across countries and regions.
• Given their connections with the private sector, CP actors have a unique role to play in facilitating linkages across sectors of society (i.e., bridging private sector and civil society actors), which can help strengthen the sustainability of the civil society sector. 
• CP actors frequently operate with small amounts of funding and have a deep reach within communities, making them well-suited for applied research and for quickly testing different development innovations, which can be useful for policy makers.  In this way, they can “afford to fail,” which is critical for learning.
• In conflict-affected societies, CP actors can help mobilize local funds and assets to engage all parties in conflict to advance peacebuilding efforts. In many cases, bilateral donors are prohibited from working with certain actors. CP institutions can help bridge this gap while at the same time leveraging social capital built through years of grassroots-level work. 
• Challenges remain, however. The “Politics of Philanthropy” is still at play and local donors, similar to foreign donors, may exert excessive influence on funding decisions. Attention therefore must be given to ensuring processes are inclusive and marginalized populations are not excluded. CP approaches also can take a considerable amount of time and work as they rely on creating and strengthening trust among various stakeholders. The time required may be frustrating for donors and donor recipients working under shorter timeframes; however, the benefits will definitely make this initial challenge worthwhile.
• It is important to use a systems approach to CP, which includes strengthening the legal and regulatory environment, providing support to CP institutions at multiple levels, developing relationships across sectors of society, as well as facilitating linkages between local and global actors. Initial GACP research in the Baltics indicates that efforts are more sustainable when local actors have opportunities to network with one another and with regional and global actors. When CP actors were isolated, their efforts were less sustainable. Understanding the delicate interplay between global and local actors, ensuring they can support one another without one side becoming too dominant, is essential. The GACP is positioned to explore such dynamics and cultivate and share learnings.
• A key “growth area” for CP is exploring how Information Communications Technology (ICT) and other new media can be better leveraged to create new opportunities for raising funds and sustaining CP efforts. While some CP institutions have begun to explore innovative ICT approaches, such as crowd-funding, this continues to be new ground for most actors.

The above are mere highlights of an extremely rich discussion. Fortunately, as the GACP advances, there will be more opportunities to explore in more depth these and other issues. For information on the GACP, contact Wendy Richardson, GFCF Coordinator for Grants and Learning, wendy@globalfundcf.org. For information on USAID’s involvement in the Alliance, contact Maryanne Yerkes, Senior Civil Society and Youth Advisor with USAID’s DRG Center, myerkes@usaid.gov.