Too often money blocks rather than enables change. It is designed by and for those holding the money. Many times, those driving social change do it in spite of the money rather than because of it.
Money is often siloed and tied to a single issue rather than recognising that this is holistic interconnected change. Leaders patch together money from a range of disconnected sources. One phenomenal community leader has had over 100 different funders to back the place-based change she is driving.
On top of this, in left behind areas there is less money, of every type – less investment funding, increased local government spending cuts, and less grant funding. When it does arrive, funding is generally short term when the solution is long term. This is not only inefficient it also breaks traction and trust – once again, people are promised something that doesn’t arrive.
Money is often the tail that wags the dog. The requirements of the money define the plan – for example the margins of a housing developer drive the level of affordable housing made available and even where it is located. We need to start seeing money as a tool not a master. Let’s start with the problem, the opportunity and the right answer. Then work out how different sorts of money can participate in delivering the solution being pragmatic about the fiduciary requirements on each pot of money.
For the money to work we have to move beyond our silos and bring together the deep knowledge and insights of citizens driving change, the policy knowledge of civil servants, the market knowledge of business leaders and the financial innovation of impact investors. If these stakeholders come together, with shared purpose and from a place of mutual respect, we could develop a broader range of financial tools that achieve more impact, develop long term sustainability and exit routes from the initial government funding.
You can read about all of the principles and the approach in this essay