Unrestricted funding remains unusual across much of philanthropy. Many funders and grantees agree it strengthens organisations and shifts power, yet concerns linger. This guide aims to give funders the knowledge and tools they need to address their concerns as they shift more to unrestricted funding.
What this guide offers
This practical, evolving resource is designed for funders interested in moving toward more flexible funding practices. It combines definitions, scenarios, tools, and case‑based insights drawn from the experience of Philea members, wider philanthropic practice, and academic scholarship. Readers will find links throughout the guide, and more resources will be added over time.
The guide is a companion for reflection, experimentation, and learning – meeting funders where they are and supporting movement at different speeds and from different starting points.
As a living resource, the guide will continue to evolve. Over time, it will incorporate additional examples from the community – including different pathways, partial shifts, and hybrid models – to reflect the diversity of funder contexts and to strengthen the connection between theory and practice.
Why this guide
Unrestricted funding remains unusual across much of philanthropy. Many funders and grantees agree it strengthens organisations and shifts power, yet concerns linger – loss of control; reputational and compliance risks; uncertainty around accountability; MEL systems designed for project funding; and internal resistance.
These concerns are taken seriously in this guide as part of the reality funders operate in – and as starting points for constructive dialogue rather than obstacles to be overcome through persuasion alone.
In many cases, the challenge is not a lack of belief in flexible funding, but the perception that existing rules, governance structures, legal frameworks, or organisational cultures do not allow it. This guide therefore pays particular attention to the “how”: What can be changed, adapted, or re‑interpreted within existing constraints – and where may longer‑term organisational work be needed.
Even funders who support trust‑based approaches often struggle with the practicalities – designing fair processes, adapting due diligence, communicating the shift internally, and aligning CRM and operational systems.
This guide aims to give funders the knowledge and tools they need to address their concerns as they shift more to unrestricted funding. It invites mutual curiosity – between funders and grantees, between programme and operations teams, and between leadership and boards – recognising that meaningful change often happens through iterative learning.
Who this is for
Funders interested in transitioning to more flexible support in general and more specifically
MEL teams adapting their tools
Programme officers shifting from project-based thinking to more flexible forms of funding
Leadership teams looking to align values and practice
Operational teams updating systems
It is also relevant for those who are curious but cautious – funders who may question whether flexible funding is appropriate in their context, or who face internal, legal, or structural constraints that make change feel difficult or risky.
Authorship & consultation
This guide has been developed by the Philea team with Pamala Wiepking of the Center of Grantmaking Research at the Vrije Universiteit Amsterdam in close consultation with Philea members who have contributed perspectives, examples, and practice-based insights.
We look forward to more contributions from readers of this guide to help us grow this resource!
Do you have practical resources to share on unrestricted funding?
Get in touch and we’ll add your resources to this guide
