20 November 2024
By Kristen Lark
Read the full article in Fundraising and Philanthropy
In our work at The Funding Network (TFN), we have seen the transformative power of flexible funding for early-stage social enterprises. Traditional philanthropy can place an undue burden on leaders, demanding continuous proof of value – a demand that weighs especially heavily on First Nations leaders who already face significant barriers. At TFN, we are committed to an approach that emphasises trust, partnership, and belief in First Nations leaders’ capabilities, allowing them to build their vision in alignment with cultural values and long-term community impact.
For TFN’s upcoming First Nations Crowdfunding pilot event, we have partnered with Darryl Majid from Indigenous business incubator Esparq Ventures. Reflecting on his journey with Esparq, Darryl emphasised the significant impact of receiving substantial financial support from a single backer who believed in him early on. This early funder’s choice to support his vision provided more than financial backing – it reaffirmed his vision: “All it takes to change the world is someone to unreservedly believe in you.” This belief, when combined with strong mutual respect, can build the confidence and determination that are just as crucial as financial backing when it comes to building sustainable impact. Darryl’s story illustrates a fundamental truth: belief in a leader’s vision is itself an investment in their potential.
For First Nations leaders, lack of visibility remains a significant barrier. Bek Lasky, a member of TFN’s First Nations Advisory Council and former CEO of Alumni Ngarrimili, echoed what many of her contemporaries are working to change: “You can’t be what you can’t see.” The underrepresentation of First Nations leaders in prominent business roles and shortage of First Nations philanthropists and investors perpetuates a cycle of invisibility that limits access to capital and networks. Bek shared that navigating these challenges has been both inspiring and exhausting, often requiring resilience in the face of structural obstacles.
This reality is part of why TFN’s First Nations funding initiative prioritises visibility and offers a trust-based model that seeks to reduce these burdens. With input from Darryl, Bek and others, TFN is working to create an approach that removes the need to constantly “prove” oneself to funders and those who control access to them. Instead, we aim to build lasting partnerships that recognise the distinct strengths of Indigenous leadership and create an environment where Indigenous enterprises can thrive on their own terms.
The benefits of a trust-based approach are clear. In the 2023 Grantmaker Survey Report from the Trust-Based Philanthropy Project, respondents supported the value of flexible funding to nonprofit leadership: “freeing up grantees to focus on their mission-critical work is a more efficient and strategic approach to philanthropy – and will ultimately contribute to more meaningful and sustainable impact.” Unrestricted, trust-based funding gives leaders more freedom to focus on strategic goals rather than meeting short-term reporting requirements, which can lead to improved morale, greater resilience, and the ability to address community needs more flexibly. This aligns perfectly with TFN’s commitment to First Nations-led enterprises to prioritise sustainable impact over short-term benchmarks.
As Bek pointed out, First Nations leaders often seek more than just funding – they need a holistic approach that provides scaffolding for long-term growth. “We need better, simpler, and less complicated ways to access the critical support necessary to grow. What we’re looking for isn’t just funding – it’s a model that provides the scaffolding for our enterprises to thrive into the future, without the mental and emotional toll that so often accompanies traditional grant applications.”
Through our First Nations pilot event, we are demonstrating this model of collective giving and trust-based funding. By facilitating angel-style investment, TFN is taking steps to ensure that First Nations leaders have the freedom and resources to achieve sustainable success. This is not merely about financial support; it’s about enabling First Nations leaders to access networks, mentorship, and resources through TFN’s extensive connections with professionals, foundations, and philanthropists.
Trust-based philanthropy creates an environment where First Nations leaders can innovate and take calculated risks without the threat of failure. Leaders who are empowered to make bold decisions without unnecessary interference are more likely to foster meaningful, sustainable change in communities. By reducing the focus on compliance and arbitrary benchmarks, we can support First Nations leaders to bring their visions to life in a way that reflects community values and needs.
Through our First Nations Advisory Council, TFN is not only listening to but learning from the lived experiences of First Nations leaders. This approach ensures that our programs are aligned with the specific challenges and opportunities that Indigenous enterprises face. By shifting from compliance to collaboration, TFN is committed to creating a sustainable ecosystem for First Nations leadership where First Nations leaders can drive real impact and sustain positive change.
In Australia, where only 0.50% of funding reaches Indigenous communities directly, we know that our role is part of a larger movement. Many First Nations-led organisations – and the people and organisations who have invested in them – have been advocating for a shift toward trust-based, flexible support, and we are honoured to contribute to their efforts. Our First Nations funding initiative is rooted in our belief in the potential of First Nations leaders – leaders who are driven not by financial gain but by a commitment to community, impact and cultural continuity. This has been demonstrated by the many First Nations-led organisations who have previously been a part of TFN, including DeadlyScience, Enterprise Learning Projects and First Australians Capital.
We invite all funders – individuals, corporates and philanthropists – to consider the power of trust-based philanthropy. Believing in a leader’s vision goes beyond financial support; it is an investment in the resilience and potential of First Nations communities. Together, we can create a landscape where First Nations businesses are not only visible but celebrated as essential contributors to the social and economic fabric of Australia.