Rethinking Power in Funding: a Report by Peace Direct

28 April, 2026

What does it mean to fund civil society in a way that truly supports justice and equity?

Recent budget cuts have brought renewed attention to how funding flows and who gets to decide. For many organisations, these shifts have reinforced a long-standing concern: that traditional, top-down funding models are too rigid, too short-term, and too distant from the realities of the communities they aim to support.

At the same time, there is growing recognition that alternatives already exist.

A new research report, “Funding Civil Society Freedom”, by Peace Direct looks at how flexible funding models are being used in practice, and what they can offer to those working across peace, justice, and development. The report starts from a clear premise. Flexible funding is not only preferable to mainstream approaches, it is a necessary part of building a more equitable and decolonised global system.

So what does flexible funding look like in practice?

Drawing on research and conversations with funders and intermediaries, the report identifies four models currently in use: Direct Champions, Connectors, Experimenters, and Convener-Advocates. Each offers a different way of approaching funding, from providing direct, long-term support to communities, to working through locally rooted partners, to creating flexible channels within more traditional institutions, or strengthening networks and advocacy efforts.

Across these models, several shared principles stand out. Flexible funding tends to be multi-year, adaptable, and as unrestricted as possible. It allows organisations and movements to respond to changing contexts, rather than being locked into predefined plans. It also often comes with non-financial support, such as capacity strengthening, wellbeing support, and opportunities for collaboration.

For many organisations, this approach is not simply about changing funding mechanisms. It reflects a broader shift in how relationships are built, how trust is understood, and how decisions are made.

Importantly, the report does not call for entirely new solutions. Instead, it highlights that proven approaches already exist. The challenge lies in recognising them, resourcing them, and having the willingness to move away from more restrictive models.
For funders and practitioners alike, this raises important questions about risk, control, and accountability, and about what it takes to support meaningful, locally led change. In a shifting and increasingly constrained fundraising landscape, flexible funding offers a practical alternative to traditional models and a pathway toward a more equitable and decolonised global system.

The report is available in English, French, Spanish, and Arabic.

Read the full report “Funding Civil Society Freedom” here.