Doing More with Less
Leveraging Limited Funds For Humanitarians
Last week, I had the privilege of participating in the #HX24 conference (organised by Save the Children UK and the Humanitarian Leadership Academy) - a gathering that brought together humanitarians from around the world.
Among the myriad of topics discussed (from ‘Humanitarianism in Light of the Gaza Crisis and the Global Implications’ to ‘Innovating for Impact - Bridging Humanitarian Aid & Startups’), my panel delved into the topic of how humanitarian financing can be made more flexible to help more people faster. On my panel were the brilliant Christina Bennett (CEO of Start Network), Paul Ronalds (CEO of Save the Children Global Ventures), Emma Karhan (Head of Public-Private Partnerships at Aon UK at Aon Benfield Group Limited), and Abi Gooch (Global Corporate Responsibility - Strategy Activation Leader at EY) - and we really did enjoy chatting!
Our discussion (Doing More with Less - Leveraging Limited Funds Through Finance), started with recognising the challenge (on everyone’s mind): increasing demand and funding shortfalls are crippling the humanitarian sector (exacerbated by the polycrisis arising from prolonged conflicts, climate change, and COVID-19). In response, we offered tangible solutions, exploring new ways in which capital markets, insurance, philanthropy and social enterprise are helping put fast and flexible funding in the hands of communities.
As Christina rightly said, "It's not about reducing ambition or reducing our impact - it's about finding creative solutions to make our limited donor funding stretch further, work harder and bring in that equity that we all want to see."
So what solutions did we discuss?
Get Your House In Order: A term that I heard throughout the event, it refers to the need for organisations (small or large) to start approaching fundraising with a strategic, relationship-based mindset (hot tip: you can use our free Field Guide to Relationship-Based Fundraising to do so).
Tap Into Philanthropy: While governments of wealthy nations continue to be major contributors to humanitarian funding, there's a notable need for diversification. Philanthropy is incredibly powerful; because it’s relatively unregulated, it can be a powerful tool for more creative and preventative work. At I.G., we’re seeing the push towards directing funding to frontline initiatives (we were thrilled to collaborate with the Freedom Fund on Funding Frontline Impact), which goes hand-in-hand with the sector’s ‘localisation’ agenda. The time is now for the humanitarian sector to diversify its income and philanthropy will play a pivotal role.
Become A Resource Activist: For those already trying to ‘tap into philanthropy’, I’m sure you’ll be experiencing challenges and frustrations with the highly competitive market. Being a fundraiser is no longer sufficient; the role is evolving into one of influence and activism. We’re all part of one big (imperfect) system and we therefore need to engage funders and peer organisations in conversations about how to do things differently in ways that meet the needs of our communities. So, adopt a system mindset and become someone who is influencing the flow of resources in the sector as a whole. If you need some inspiration, you can read more about our CEO Emily’s journey towards becoming a Resource Activist.
Shift To Innovative Financing: There are some incredibly exciting new(ish) financing options available to the sector. During the panel, Emma (Aon) introduced new financing mechanisms such as disaster risk insurance (paid before a disaster actually happens), and Paul (Save the Children Global Ventures) highlighted the huge untapped potential of impact investing (allocating capital to create measurable social or environmental benefits). There are also others that fly under the radar like humanitarian impact bonds (leveraging private sector capital to fund humanitarian interventions). Start thinking outside the box!
Partner with Aligned Corporates: One of my favourite things to do at I.G. is work with businesses to ensure they understand the opportunities and imperatives of impact work (putting profit next to purpose). It was music to my ears to learn about Abi’s work at EY collaborating with NGOs, communities, governments and impact entrepreneurs. It’s important to raise awareness of businesses being a force for good while also advocating for policy reform to strengthen responsible business practices (let's please make ESG just the beginning). Where possible, do your research and explore collaboration with businesses (that align with your values). Who knows where that could take you.
Understand Risk: We’ve seen how the politicisation of the humanitarian sector has impacted donors' approach to risk management (the thing that often drives decision-making in the funding world). While there’s no simple solution, diversifying income sources is essential. We need to also work in partnership with donors to advocate for the role the humanitarian sector plays (i.e. ensuring decision-making aligns with the humanitarian principles of 'humanity', 'neutrality', 'impartiality', and 'independence').
On the whole, it was a brilliant day and conversation. Let's shift the dial on humanitarian giving trends, channel your inner Resource Activist - and I’d love to hear how you get on exploring the six steps above. Contact me at harriette@ig-advisors.com or book a quick 30-minute chat here.
