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The power of unrestricted funding: Backing organisations, not just projects 

Profile of Gabby Lam, Australian Communities Foundation
Written by Gabby Lam, Australian Communities FoundationPosted on 21/9/2025
The power of unrestricted funding: Backing organisations, not just projects 

When you start giving, it’s natural to be drawn to funding specific projects with clear outcomes. Project funding will always play a vital role in creating change.

But if you ask the people working on the frontlines of social change, they’ll tell you: the most powerful gift you can give is trust. And trust often looks like unrestricted funding. 

Unrestricted funding (sometimes called untied or core funding) allows not-for-profit organisations to allocate resources where they’re needed most – whether that’s paying staff, investing in infrastructure, or responding to unexpected challenges. It’s the kind of support that builds resilience, fosters innovation, and enables long-term impact. 

At Australian Communities Foundation, we’re in contact with hundreds of not-for-profit organisations every week. We hear time and again how transformative untied funding can be. That’s why we’ve evolved our Funding Platform – moving from a project-based showcase to a directory of 900+ organisations across Australia. This shift reflects a growing movement in philanthropy – one that prioritises supporting organisations, not just their outputs. 

The most powerful gift you can give is trust. And trust often looks like unrestricted funding

By browsing the platform, donors can explore a wide range of causes, from climate action and First Nations justice to gender equity and community wellbeing, and connect directly with organisations aligned with their values. You can also explore organisations endorsed via our flagship collective giving initiative, the Impact Fund, here

Untied funding enables organisations to do their best work. It allows them to plan for the long term, invest in their people, and adapt to changing circumstances. 

But this approach is just one part of a broader strategy for effective, trust-based philanthropy. Here are a few other approaches we encourage donors to consider: 

  • Flexible reporting: Many organisations already report to multiple funders. At ACF, the default for unrestricted grants is to accept existing reports, reducing duplication and administrative burden. Some Fundholders are also comfortable providing support with no reporting requirements at all. This flexibility allows organisations to focus more on delivering impact, rather than paperwork. We acknowledge that some funders may seek more detailed proof of impact, and in these cases, we encourage open dialogue to find a balance between transparency and trust. 
  • Multi-year commitments: Multi-year grants not only benefit organisations by providing stability, but they also help funders plan their giving more strategically. Knowing their commitments in advance allows funders to allocate resources more effectively and build relationships with the organisations they support. 
  • Long-term, trust-based relationships: Building strong partnerships with the organisations you support leads to better outcomes for everyone involved. It also creates space for honest conversations about challenges, learning, and growth. 

We understand that for some donors, giving without conditions can feel unfamiliar. But the evidence is clear: when organisations are trusted with flexible funding, they deliver extraordinary results. 

We invite you to explore the ACF Funding Platform today and consider how your giving can support not just projects, but the people and organisations driving change every day. 

Explore the Funding Platform | Explore Impact Fund Partners

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