Large foundations and billionaire philanthropists often dominate the philanthropy narrative. Yet, a less visible, essential player is shaping this landscape: the intermediary funder.

Intermediaries bridge the gap between major funders and grassroots organisations, providing critical support that larger funders might find challenging to implement. These intermediary funders – sometimes perceived as mere ‘middlemen’ – play a nuanced and essential role in moving resources, especially in sectors and regions where traditional philanthropy and development aid agencies struggle to adapt.

Far from simply channelling funds, intermediaries are transformative actors in the philanthropic ecosystem. They work as connectors, advocates, and interpreters of local contexts, enabling grassroots organisations to access not only funding but also support systems. Unlike larger private funders and aid agencies, intermediaries have the political and administrative agility – and the relationships – to make small and/or flexible grants, often at short notice, which is vital for addressing the needs of marginalised communities. They operate at a unique intersection, blending local knowledge, responsiveness, and a commitment to equity – qualities that are crucial for fostering real change, and are increasingly essential in this time of political uncertainty.

Intermediaries understand that effective grantmaking goes beyond sending grant money. In regions facing restrictive legal environments, shifting political landscapes, or discriminatory banking, they find creative pathways to ensure resources reach communities. For instance, they may employ alternative funding routes or leverage networks to facilitate secure transactions. This kind of flexibility is often beyond the financial or practical abilities of larger private funders, who are bound by rigid protocols and often lack direct insight into the realities on the ground. Intermediaries provide a form of ‘accompaniment’, backing grantees to support not just their projects but also their organisational resilience, internal capacity, and long-term impact.

Read the full article on Alliance Magazine ! EDGE members and EDGE Conference 2025 attendees have 50% discount rate – contact martinastefani@edgefunders.org for the code. Or, check here to know if you are eligible for free digital subscriptions.