This weekend, I launched an open letter that is slowly gathering traction, as are private discussions regarding the current state of government funding. 

However, this latest round of funding inequity could not be ignored. I needed to bring a nuanced understanding of the intersectionality required when allocating funding for underrepresented groups. My open letter addresses the persistent issue of funding disparities cloaked in inclusive language.

Funders often champion support for "underrepresented" or "historically marginalised" groups, but the reality is that these funds frequently fail to reach the communities most in need. This results in:

• Women’s business initiatives often primarily benefit a homogenous group, sidelining racially diverse and non-binary individuals. These disparities are exacerbated by the intersectionality of race, ethnicity, gender identity, and other social factors, which shape unique barriers to access and support.

  Ethnic minority funding disproportionately supports specific communities while excluding others. This inequity often neglects the intersectional challenges faced by those from less-represented (seen) ethnic backgrounds, who may also experience additional barriers due to their class, gender, or other aspects of their identity.

• Youth programs often favour "presentable" or "easier to engage" beneficiaries, overlooking working-class children who face more profound systemic barriers. These barriers are further compounded by the intersectionality of their class, race, ethnicity, sexual orientation, and other aspects of their identity. This layered complexity makes it even more crucial to address their needs through inclusive and equitable program designs.

Why Funding Should Prioritise Grassroots Organisations

Now, bringing in grassroots organisations with long relationships and a deeper understanding of the communities they serve will help bridge the access gap. Grassroots organisations are often embedded within the so-called "hard-to-reach" communities and have a deep understanding of their challenges. In the early days of the COVID-19 pandemic, they provided a powerful example of their critical role.

While larger organisations halted services, furloughed staff, or struggled to regroup, grassroots organisations pivoted quickly, addressing their communities' urgent and evolving needs. These organisations stepped up, continued services, and adapted in real-time, often without the resources or recognition they deserved.

I remember this vividly—we were one of those organisations, continuing to serve deeply until 2022. That year, however, we slowed down our delivery when our office flooded, staffing challenges and entering into a funding contract that was detrimental to the people accessing our services. At the time, I was working through burnout and dealing with a lack of understanding from funders who failed to realise that their criteria no longer matched the needs of our target groups.

This mismatch was caused by new and heightened issues stemming from shifting demographics and deepening disparities. We commissioned the Untapped Talent: Hidden Opportunity report to address this gap and bring data to the lived experience. This research informed our decisions and highlighted the challenges caused by chaotic funding practices.

Part of our job would now include bridging the awareness gap between large organisations, funders, grassroots organisations, and people. Living the inequity and bootstrapping our services was a short-term solution. 

The main insight we can share is that it’s essential to include grassroots organisations in collaboration with larger organisations and mandate equitably funded collaboration. Too often, the heavy lifting is left to smaller or grassroots organisations, which are already stretched thin.

For example, we’ve had experiences where larger organisations, with funds to hire more people, sought “free” consultation and support from grassroots organisations. These larger organisations lacked the knowledge, training, or experience to effectively work with the target groups for whom they had won funding. This creates an unsustainable burden on smaller organisations and undermines the potential impact of the funding.

Funders also need to be mindful that they often miss out on working with quality grassroots organisations simply because these organisations lack polished funding application writing skills. Just because an application looks shiny doesn’t mean the project behind it will deliver.

Working with underrepresented and historically marginalised groups requires a multi-pronged and holistic approach. Broad-brush funding allocations fail to address the nuanced needs and barriers these groups face. Collaboration between grassroots and larger organisations is not just helpful—it’s necessary for sustainable and effective impact.

Supporting Women and Under-Represented Groups in Entrepreneurship

Tackling the severe under-representation of women and other under-represented groups in entrepreneurship requires systemic changes and intentional support:

• Standardised Impact Reports:
  Governments should create standardised impact reports to identify gaps in reach. These reports should not aim to punish or detract from larger organisations but instead foster collaboration with grassroots organisations, ensuring shared resources and equitable impact.

• Equitable Collaboration:
  Partnerships between large and grassroots organisations should be funded equitably so smaller organisations are not left to carry the burden without resources. (I am Repeating this for enforcement.)

• Equity in Resource Allocation:
  Grassroots organisations must be recognised and supported as critical partners in achieving diversity and equity.

A Personal Note

I am taking a break from social project delivery to focus on income generation and raising the funds needed to continue impact work. As a Black woman in social impact, I’ve often have to dedicate time to educating and amplifying issues that directly affect how I do mine and my p’s work.

While this is essential, it is unsustainable. The time I spend on education could instead be used to focus on sales and fundraising—the very activities that keep my business running. However, without these (blogs, articles, LinkedIn and private messages), this cycle of inequity continues.

The best way for me to continue is to provide this as a service. I am open to delivering sessions for funding organisations to improve your understanding of equity-driven funding approaches and how to collaborate more effectively with grassroots organisations.

What Can Funders Do Differently?

• Mandate Equitable Collaboration

  Require large organisations with poor track records in reaching diverse communities to partner with grassroots organisations. Allocate specific funding for this collaboration to ensure the heavy lifting isn’t left to smaller organisations.

  Demand Disaggregated Data

  Insist that funded organisations track and transparently report on the demographics of their beneficiaries. This data can expose gaps and drive better-informed funding decisions.

• Redirect Funding Where It’s Needed

  If organisations consistently fail to serve specific groups, redirect funds to grassroots organisations already embedded within these communities. Recognise and value the trust and understanding they have cultivated over time.

• Value Beyond Polished Applications

  Funders should look beyond well-written applications and flashy presentations. Grassroots organisations often deliver the most meaningful impact, even if their applications lack polish.

• Inclusive Decision-Making in Fund

  Individuals with diverse experiences, thoughts, and backgrounds must represent the people deciding funding allocations. This ensures that decision-making is inclusive and reflective of the communities being served. Without this diversity of perspective, funding risks being allocated based on biases or limited understanding of the true needs and barriers faced by underrepresented groups.

Nuanced discussions

Even as I write this, I know that a single post cannot capture all the nuances. I would have made this into a video if I wasn't nursing a cold. However, as an advocate for equity, I struggle to ignore opportunities to encourage funders and the ecosystem to move beyond token gestures and ensure funding truly supports the diversity it claims to champion.

📄 Read the full letter and join the conversation: https://forms.gle/S3Ph1Au8zMoRGUWy7

#FundingEquity #DiversityAndInclusion #RepresentationMatters #SocialImpact