Putting down the chequebook, picking up the paintbrush - a funder’s view

What happens when a sustainability practitioner moves into philanthropy? For Gerri Ward, the shift has highlighted both the familiar challenges and the very different ways funders can choose to contribute. Now Head of the BNZ Foundation, Gerri reflects on a recent article from global nonprofit consulting firm FSG’s The Funder’s Palette, and what it says about the evolving role of philanthropy. Gerri previously worked with a group of CSP givers and supporters working together for the Hauraki Gulf/Tīkapa Moana, and brings more than 20 years’ experience in sustainability leadership to this reflection.

Making the transition from a career in corporate sustainability to corporate philanthropy has been for me both reassuringly intuitive and wildly complex at the same time. There are the obvious overlaps: the people you work with are values-led, purposeful and empathetic, and passionate about doing their bit to make the world a better place. There are the collective frustrations of seeing what needs to be done, and not having enough time, available resources, agility or alignment to just go there. There are the ideological challenges, the inefficiencies, the broken records being played over again. There is never enough time. And there is so much to learn – whole new networks of who’s doing what where, what’s broken that needs fixing, how and why. What success looks like, and what impact really is, and who for.  

A familiar world, with a different toolbox

Imagine my sense of relief and validation, then, when I was sent this article recently, via my burgeoning ecosystem of philanthropic experts, and found many of my evolving observations corroborated by the very clever social impact experts at the global nonprofit consulting firm FSG in their fascinating recent research paper: The Funder’s Palette. The authors drew on their 25+ years of research, and conducted interviews with 20+ foundation leaders specifically for this report, who also contributed expertise, examples and insights. The report explores how philanthropic foundations are expanding their thinking beyond grantmaking alone, considering a broader range of approaches they might use depending on the context, the relationships involved and the outcomes they hope to support. It asks: How can foundations best contribute to equitable systems change, and what are the common approaches, tools, and mindsets that enable those successes? 

More than a chequebook

The report outlines ten approaches foundations can use, from strengthening organisations and developing leaders through to shaping markets, supporting policy change, amplifying community power, actively cultivating collaboration and using their relationships and platform to build capability. Rather gratifyingly, the research shows that there is no one “right answer”, but that real progress comes from picking up many brushes, and combining several approaches intentionally, depending on the context and the outcomes sought.

It also poses a challenge based on this recognition of the power of amplification: too often, we define our role (or it is defined for us) strictly as grant-makers, when we know that the interconnectedness and complexity of the environmental, social and economic challenges we care about can call for more than funding programmes alone. They require stronger organisations, better evidence, intergenerational thinking, community leadership and, at times, policy and market shifts. Our time and money may well, then, be best spent focused on how we can strengthen what’s already there, in that place; rather than risking fragmentation through short-termism, duplication or the temptation to constantly create something new. The challenge for funders is not simply to ask what we can fund, but to consider what combination of resources, relationships, knowledge and connections might be useful in this context.

From transactions to relationships

The report also reinforces something many of us are seeing in practice: effective philanthropy is increasingly relational rather than transactional. The chapter on Being the Change highlights the importance of listening deeply, staying connected to community realities and using influence thoughtfully. When funders invest in genuine, long-term relationships, they are better placed to understand local context, respond to emerging needs and support change that lasts beyond any single grant or initiative.

Thinking beyond our own time

It also speaks to the importance of adopting a genuinely intergenerational mindset. Much of modern philanthropy is still shaped by annual funding cycles, short-term outcomes and a desire to see change within our own time horizons. By contrast, what we can learn from te ao Māori encourages us to think in terms of whakapapa, kaitiakitanga, and responsibility across generations. There is a powerful lesson here for philanthropy: lasting change requires patience, humility and a willingness to invest in outcomes that may take years, or even generations, to fully emerge.

Start with place

The report also reinforces the value of place-based thinking. Effective philanthropy starts with listening to those closest to the issues and recognising that local knowledge is often the best guide to meaningful action. The issues facing the health of our environment and the wellbeing of our communities are deeply interconnected. Restoring a harbour or protecting an endangered species is not simply an environmental outcome; it can strengthen cultural identity, community connection, local economic opportunity and collective pride. For funders, this suggests a shift from asking "What programme should we fund?" to asking “What outcomes matter most for this community, and how can we best support those already working towards them?"

Putting the palette into practice

At BNZ Foundation, our refreshed strategy reflects many of these themes. In trying to figure out what place-based catalytic funding truly means, we are increasingly focused on how we can support partnerships, connect people and organisations, share learning, and help unlock broader change for communities and the environment. The question is not simply "what should we fund?" but "how can we use our resources, relationships and influence to support the outcomes that matter most?" Sometimes that will be providing funding. At other times it may be convening, connecting, learning, or helping others to collaborate more effectively.

Knowing which brush to use

For those working in strategic philanthropy, The Funder's Palette challenges us to think more intentionally about the different ways funders can choose to contribute. The real opportunity, perhaps, is knowing that the chequebook is only one tool - and taking the time to understand what the situation, the relationships and the people closest to the issue call for.