Three ways to make green grants more effective

Welcome to our new philanthropy digest bringing you the latest insights, ideas, and discussions about innovative ways we can reimagine our sector; supporting and platforming the communities that can drive real change for a fairer, more sustainable, and stronger future.

This week’s issue dives into the Environmental Funders Network ’s latest report, following our issue ‘Five worrying trends in environmental philanthropy ’.

Three ways to make green grants more effective

The Where the Green Grants Went 9 report reveals several systemic issues in environmental philanthropy that are affecting grantees' ability to address urgent challenges.

?For funders to make a bigger impact, they need to rethink their approaches to grant-giving.

1.??????? Look at the big picture

Tackling key environmental crises, such as climate change and biodiversity loss, requires sustained efforts over many years. However, current funding models tend to prioritise immediate, measurable outcomes, leading to a ‘short-termism’ that hinders meaningful progress.

For example, tackling deforestation requires long-term funding to support reforestation projects, restore ecosystems, and engage local communities in conservation efforts. However, many grants only fund specific tree-planting initiatives, without considering the need for ongoing monitoring, community involvement, or protection of the forest after replanting.

To make a lasting impact, funders should shift their focus to the big picture and support initiatives that address systemic, long-term solutions. Providing flexible, unrestricted funding would allow grantees to adapt to changing environmental conditions and invest in capacity building, ensuring they can address both current and future challenges.

2.??????? Don't fund alone

Collaboration between funders can lead to more significant outcomes.

By pooling resources and aligning their goals, funders can achieve a more comprehensive and strategic approach to addressing environmental issues. For example, Synchronicity Earth uses pooled funds to support organisations within its Congo Basin Programme , Amphibian Programme , and Chrysalis Youth Fund . The benefits for funders joining the pools include benefiting from research and expertise; funding smaller, ‘hard-to-reach’ groups, and reducing the time taken to foster strong relationships with partners, which are held by Synchronicity Earth.

Joint efforts allow for better coordination, reducing duplication and ensuring that more organisations receive the support they need to create lasting change.

3.??????? Prioritise the needs of your partners

Grantees, particularly smaller organisations, are often burdened by excessive administrative requirements tied to funding. Many funders impose strict reporting criteria, with short funding cycles, and only provide restricted grants, limiting how the funds can be used. While these practices aim to ensure accountability, they often create an administrative load that diverts resources away from vital environmental work.

To be more effective, funders should prioritise the needs of their partners by reducing administrative burdens and offering more flexible funding. Our recent issue written by Ameyali Ramos ‘How can we reimagine philanthropy? ’ described some of these approaches, such as trust-based philanthropy, which reduces reporting requirements and allows grantees to use funds where they see fit, can improve the efficiency and effectiveness of organisations.

By placing trust in their partners, funders enable grantees to focus on solving environmental challenges rather than navigating bureaucratic hurdles.

Long-term change

By taking a holistic approach, collaborating with other funders, and prioritising the needs of their partners, environmental philanthropists can significantly enhance the effectiveness of their grant-giving.

This will empower grantees to tackle the urgent environmental crises of our time and drive long-term, systemic change.

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