I was recently asked my views on why it is important for grantmakers to fund organizations in Africa directly. My first response is that the question of why it is important is more often linked to what the foundation values and if gaining knowledge is a part of the “cost of doing business equation.” While it can be a desire for a foundation but other legal issues present problems to doing it easily, I do think it is important.

I think it is important for several reasons. The rationale for funding is to help address social problems through supporting the work of organizations actively involved in that area. Funders don’t DO the work– they support the work of others. The impact of that support goes beyond the support of a specific organization to do a specific project. Partnering with local organizations in a way that seeks to strengthen the field and values the overall strength of the organization beyond a specific project. It is an investment in the possibility of systematic change. This is taking a “big picture” long-term approach.

A stronger civil society sector also means a stronger sector to engage in both public and private sector partnerships that could mean more leverage of resources, a wider and more active base to engage with government for policy change, and collateral benefits such as employment.

One of the myths in working in countries with weak infrastructures is that they are cheaper. Often this is quite the contrary. Foundations working in several international regions often cite that costs associated with supporting project in African countries can be higher than in countries in Latin America or Asia. The intermediary organizations working in these countries know this and justify their overhead or indirect costs based on this. So for some funders, funding directly can be seen as more costly, not only because of weak infrastructure but the cost of supporting a local presence.

While cost is one consideration, knowledge is another commodity that can be gained through direct engagement with local organizations. While it might be easier and somewhat cheaper (although this is questionable) to work through intermediary organizations to implement projects in African countries, what the intermediary gains and the foundations do not, is knowledge– about the sector, country and most importantly, being a good and effective partner. With all the emphasis on knowledge in the field of philanthropy this is an important commodity. What do you think?