Five ways to fix the busted funding model

Over the past few years, I’ve been laying low. I took some time to reflect and reset, especially in my local community in Kelowna.

However, this month I attended two events: The Philanthropic Foundations Canada Conference in Winnipeg, and BC Connect (hosted by Vancouver Foundation and Community Foundations Canada) in Kelowna. 

Both were tailored for foundations and philanthropic organizations and were deeply rooted in the same truth: we cannot solve today’s complex community crises using the same cautious, top-down funding mechanisms that created them.

Attending PFC reminded me of the massive, systemic leverage national networks hold, while BC Connect grounded me in the immediate, tangible needs of B.C.’s communities. It also reminded me of the great people doing new, creative things.

Standing at the intersection of these conversations, a persistent truth keeps coming up for me: the search for transformative action in philanthropy isn’t about finding new ideas. It’s about having the courage to implement the ones front-line communities have been shouting from the rooftops for decades.

And to put love at the centre of it all, of course.

This work matters deeply to me; when I took time off from my career, I knew I would stay in this kind of work. Why? Because I witness the friction firsthand: teams spending countless hours jumping through administrative hoops to secure basic funding, while massive foundation endowments sit on the sidelines, tied up in traditional investments that counter the very missions we are all fighting for.

But if one thing these events are showing me, it’s that there is possibility in the hands of bold, courageous people. If we want philanthropy to move away from transactional granting and toward liberation, here are five bold actions I heard from others that may help spark love and courage. 

1. Adopt a “Fund to Learn” First Approach

We all know that trust takes time, and relationships take time to build. But we also know that foundations are in a rush to build good relationships.  

Kris Archie, CEO of The Circle Philanthropy, brought a great example into sharp focus at PFC regarding funding Indigenous-led organizations. We need foundations to stop putting non-profit leaders through three rounds of coffee chats, an exhaustive proposal process, and a walk around the park before deciding if they are worthy.

“Put the onus of learning back on yourselves as the funder,” they said. 

Then write an unrestricted cheque and add: “We deeply appreciate the vital work you are doing. Keep doing it. Whenever you have a moment, we’d love to grab coffee and learn how we can support you further.”

2. Hire Young People and Former Non-Profit Workers

Are you and your board actively bringing on young leaders who want to shape the future of capital? If you want a foundation to stay grounded in real-world conditions, hire people who have actually done the work on the ground. 

Bringing in young voices and former front-line non-profit workers fundamentally shifts organizational culture. They bring lived experience, acute awareness of modern community needs, and an innate curiosity that asks: “What else could be true here?”

Setting up the next generation for success means giving them real decision-making power and capital to move today — not just handing them an advisory committee seat while the money stays locked in endowments.

3. De-Risk for Social Impact (Interrogate Your Capital)

Holding assets in perpetuity while front-line organizations starve for operational stability is a failure of imagination. Listening to discussions between wealth managers and foundation leaders like Aaron McRann from the South Okanagan Community Foundation reinforced how urgent it is to rethink the conditions that make approving loans and funding for social impact feel risky..

Why is it OKfor 95% of a foundation’s money to sit in traditional investments—or worse, private equity that harms local communities—while only 5% gets granted out? 

Foundations need to ask the hard question: “Why is it more important for our foundation to hold onto this money than it is for front-line organizations to be sustainable?”

4. Pool Resources to Build True Regional Capacity

Many community foundations are small, but the challenges facing our local communities are massive. Granting small $5,000 checks in isolation isn’t cutting it anymore.

Foundations have an opportunity to step up as regional facilitators. We see how powerful this can be through initiatives like the Okanagan Prosperity Fund, where three local foundations in The Okanagan pooled resources, stepped into collaborative facilitation roles, and partnered with organizations like Purppl to deliver blended learning, roundtables, and direct coaching around impact measurement. 

By sharing models, data, and administrative infrastructure, foundations can build regional capacity that far exceeds what any single grant could achieve.

5. Abandon the Fear of Messing Up

The fear of making a mistake is one of philanthropy’s greatest excuses for inaction. But as Archie reminded us, “you will mess up.” 

The difference is that when you lean into humility, acknowledge your missteps publicly, and share what you learned, the entire room — and the whole sector — becomes wiser, together.

Real relationship-building requires vulnerability, reciprocity, and a willingness to step into the mess alongside community partners rather than judging them from a distance.