Across the philanthropy world, the conversation around trust-based or unrestricted funding support has been gaining traction. Yet, despite widespread agreement on its importance, few funders have fully embraced it. For organizations like Enviu, which build social ventures to tackle systemic challenges, the difference unrestricted funding makes is transformative. It enables us not only to execute projects but to focus on where we can create the greatest impact, with the stamina which systems change requires
What unrestricted funding really means
Unrestricted funding supports an organization as a whole, not just specific projects. It is rooted in trust – trust that the organization knows best where funds can make the greatest difference and which internal organization is needed to execute that.
Alongside financial flexibility, unrestricted support often also includes long-term commitment, open dialogue, visibility, strategic sparring and shared learning. These non-financial forms of support strengthen decision-making, create space to adapt, and help organizations navigate the uncertainty and complexity that systems change inevitably brings.
Strengthening the organization: building the foundation for impact
At Enviu, unrestricted funding and support have allowed us to evolve and grow strategically. For example, when we received this support from partners such as the Dutch Postcode Lottery, we were able to invest in the development of our organization. Enviu has grown from a Dutch non-profit to a truly international one, and doubled in size. This requires a different organizational set-up and has enabled us to focus on strengthening our core:
- Impact measurement and structuring: We developed an organization-wide robust system for measuring and managing the impact of our programs and impact ventures.
- Dedicated fundraising capacity: We built a specialized fundraising team, relieving program managers so they could focus on execution and innovation.
- Cross-office collaboration: We streamlined how our global offices share learnings, using our best practices from our methodology with experience of 20+ years.
One of SokoFresh’s smallholder farmers in East Africa
These steps may sound operational, but they are foundational. They create the stability needed to act strategically, to innovate boldly, and to maximize the value of every euro we receive.
Focusing on where the most impact can be made
The second major effect of unrestricted funding is flexibility – the freedom to direct resources toward where they can make the most difference. Shifting the focus from “which project will you deliver?” to “what change are you working toward?” It acknowledges that impactful systems change often requires flexibility, experimentation, stamina, and organizational maturity – things that cannot be sustained on project budgets alone.
Traditional project funding often locks organizations into predefined outputs. If conditions change, there’s little room to adapt. Unrestricted funding flips this dynamic. It gives us the freedom to assess what is actually needed, not just what was planned, and truly aim for systems change.
For example, in our Zero Waste domain, we have been able to change this with unrestricted funding from Flotilla Foundation. To transition from a disposable economy to a circular one, bringing along key stakeholders is crucial. Yet this process takes time and doesn’t always yield immediate results. Core funding allows us to stay committed to that journey, to focus on the outcome, not just short-term deliverables.
Enviu Zero Waste team working on plans for Destination Zero Waste Bali pilot.
This outcome-oriented mindset keeps us aligned with our North Star, and allows for creating lasting, system-level change.
A shift in mindset and accountability
Receiving unrestricted support is not just a financial shift, it’s a cultural one. It challenges both organizations and funders to think differently about impact.
For organizations, it means being open about what your organization needs to optimally deliver impact. Also, it means defining and measuring success not by outputs, but by outcomes. It requires rethinking how we plan, report, and communicate: articulating the change we aim for at the system level and being transparent about the steps, and sometimes pivots, along the way.
For funders, it requires moving from control to collaboration, from oversight to partnership. Trust becomes the cornerstone of impact.
At Enviu, transparency and accountability remain central. We maintain rigorous planning and reporting, but at an organizational level rather than a project level. Each year, we define clear priorities and outcomes, and we regularly update our partners on progress. This allows our funders to see the bigger picture of how their support drives change while reducing unnecessary administrative burden for both sides.
Learning from leaders
We’re fortunate to collaborate with funders who are pioneers in this space.
The Dutch Postcode Lottery has long been committed to supporting organizations rather than just projects. Their philosophy is simple but powerful: if you trust an organization’s mission and capabilities, you empower them to deliver real change.
Jonne Arnoldussen, Managing Director of the Dutch Postcode Lottery shares:
“We are proud to support organizations like Enviu with a one-time, unrestricted contribution. We believe in partnerships that give organizations the freedom to invest where it is needed most. Thanks to our participants, we are able to provide support without restrictive conditions. That freedom, to strengthen organizational capacity, to experiment, and to work toward long-term change, truly makes a difference. Above all, we aim to be a reliable partner: offering trust, adapting where needed, and leaving the expertise where it belongs, with the organizations themselves. It is this space and trust that enables initiatives like Enviu to achieve their greatest impact.”
Flotilla Foundation is dedicated to promoting the best and most efficient solutions to today’s biggest problems in ocean conservation. The foundation supports organizations who take concrete action whilst working towards systems change.
Tamar Matalon, Director of Flotilla Foundation:
“We believe that lasting change starts with trust. Trust-based philanthropy means backing organizations for who they are, not just what they promise to deliver in a single project cycle. By providing unrestricted funding, we enable partners like Enviu to focus on the deeper, often less visible work that systems change requires: building relationships, learning from experimentation, and staying the course when progress is non-linear. Our role as a funder is not to prescribe solutions, but to create the conditions in which capable organizations can do their best work. When we shift the conversation from outputs to outcomes, and from control to partnership, we see stronger organizations — and ultimately, greater impact.”
Let’s learn from each other
The benefits of unrestricted funding and support are clear yet adoption remains slow. Many funders remain hesitant, often because they lack concrete models for how to implement trust-based giving effectively.
Our experience has shown that it can be done – with transparency, accountability, and impact intact. But we’ve also learned that both funders and recipients need to grow into this way of working. It takes dialogue, learning, and a willingness to experiment.
That’s why we’re calling on others, both funders and non-profits, to share their best practices. Let’s exchange experiences on how to build trust-based funding models that work in reality, not just in theory.
Because when we fund organizations, not just projects, we build the capacity for long-term change. We create resilience, innovation, and impact that lasts far beyond a single grant cycle.
