Beyond the grant: Getting the right capital in the door

Grants remain an essential tool for philanthropy. But they are not always the right tool on their own. In some situations, a recoverable grant, guarantee, outcomes-based funding, low-interest investment, or a combination of approaches can help recycle philanthropic capital, share risk, unlock additional investment, or support an organization in ways a traditional grant cannot. The challenge is knowing when to use what. While there is ample opportunity to combine different forms of capital within a single funding relationship or transaction, doing so can be difficult in practice. Organizations may be asking for greater flexibility while donors are constrained by internal structures, established processes, or unfamiliarity with other financing approaches. This creates a gap between the capital organizations actually need and the capital philanthropy is set up to provide. When funding is scarce, that mismatch matters even more. How can donors become more responsive to what their partners need? When does combining grants with other forms of capital genuinely create value, and when does it simply add complexity? What does it take inside a philanthropic institution to make these approaches possible? This conversation will bring together donors and doers who are grappling with these questions in practice. Rather than advocating for one financing model, it will create space to examine the choices, constraints, and trade-offs involved in getting the right type of funding in the door at the right moment. What to expect A practical, participant-driven conversation about using multiple forms of capital to support social impact. Participants will be invited to bring real experiences and challenges, from structuring blended transactions to navigating the internal barriers that can prevent funders from offering more flexible capital. The discussion will focus on learning across the room: what has worked, what has proved unnecessarily complicated, and what funders and their partners need in order to make better financing decisions together. Who this is for This session is for philanthropic donors, foundations, impact investors, social entrepreneurs, nonprofit leaders, and other practitioners interested in using grants, investments, guarantees, outcomes-based funding, and other forms of capital more intentionally and flexibly. What you will get out of it A clearer sense of when different forms of philanthropic and investment capital may be appropriate Practical insights into combining multiple types of capital within a funding strategy or transaction Perspectives on the barriers that prevent donors from responding flexibly to what their partners need Space to explore the trade-offs between financial innovation, simplicity, risk, and impact Connections with funders and practitioners navigating similar financing questions Hosted by Joanne Sonenshine