Small grassroots organisations face increasing challenges in obtaining funds for vital internal development—such as leadership, systems, and governance—due to tighter, project-driven funding with strict compliance requirements. Advocates argue that investing in organisational capacity is essential for lasting impact.
- Funding is more competitive and focused on project outcomes than ever.
- Organisations struggle to allocate budget for internal growth needs.
- Clear needs and funder knowledge improve chances for capacity support.
What happened
In recent years, grassroots organisations have faced mounting pressure to secure funding amidst increasingly competitive and compliance-heavy environments. Many groups find themselves prioritising project delivery over essential organisational needs like leadership development, systems upgrades, and governance. This trend has resulted in weaker institutional capacity and limits long-term impact on the communities they serve.
Leaders from organisations such as SPREAD in Odisha and GSVS in Rajasthan highlight how current funding models often restrict the portion of budgets dedicated to internal development. Fixed funding formats and close funder oversight leave little room for discussion around institutional strengthening, even though such investment is critical for sustainability. Despite these challenges, grassroots organisations continue to seek dialogue with funders to advocate for capacity building support.
Why it feels good
Recognising the need to invest in organisational development offers grassroots groups a roadmap to enhance their effectiveness and resilience. By focusing on team skills, governance, and internal systems, these organisations can improve programme quality and adapt more flexibly to changing community needs. The gradual shift in funder attitudes, with some international and local supporters becoming more open to conversations about capacity building, also provides hope for increased institutional funding in the future.
Having transparent conversations about real organisational challenges—not just surface requests like ‘training’—builds credibility and trust between grassroots groups and funders. This approach fosters stronger partnerships where funders gain a clearer understanding of how investing in institutional growth translates into better outcomes. Organisational leaders emphasize that demonstrating commitment to learning and change is as important as securing financial resources.
What to enjoy or watch next
Grassroots organisations are encouraged to carefully assess and clearly articulate their capacity-building needs to funders, linking them directly to long-term goals such as diversified funding or improved programme management. Differentiating between perceived needs and root challenges helps organisations present a stronger case for support. Additionally, understanding each funder’s openness to institutional funding allows pursuit of more flexible opportunities, such as international or emerging local funders.