An article by Renata Minerbo, our Head of Community & Partnerships, originally published in Portuguese by our network channel, GIFE, an association of private social investors in Brazil.
Social investment practices offer countless possible approaches, and you might agree that regardless of the theme, scale or location, we often face feelings of powerlessness and frustration when we can’t address the root of the problems. The fact that we are part of the very system we want to change makes it harder to act in ways that don’t reinforce that system (and sometimes even the problems we seek to solve).
But what kind of action is this, and how can we do things differently?
In general, organisations are taught to operate with a highly transactional mindset. How many times, in my decade of “frontline" experience, have I celebrated formalising a contract, committing to deliver an overwhelming list of outcomes, while the funder signed the cheque and passively awaited miraculous results from a one-off project?
These dynamics not only reinforce the power imbalance between the parties but also overlook the fact that people are behind these contracts. The bureaucratisation of partnerships does a disservice to the change we seek. Instead of focusing on their core mission, projects spend time and money meeting funders' demands.
There’s no relationship, only pressure on those delivering a long list of requirements, and expectations formed by the funder’s lack of lived experience.
Can this transactional logic, which bases its strategies on linear and segregated planning, seeks control, and disregards not only the externalities of its actions but also the complexity of the systems we inhabit, really be the path to the systemic, long-term change the social investment sector desires? If not, what is the alternative?
Relational logic represents a shift from this linear approach, and the good news is that its practice is growing globally. Funders still expect teams to deliver on what they propose, but there's an element of trust and flexibility that transforms the dynamic. This logic recognises that both sides bring different yet complementary experience and expertise. It acknowledges that those on the ground are best placed to know how to use the resources and may need to adapt plans to address unforeseen challenges. It also recognises that change takes time, and many aspects of that change are not quantifiable.
I believe that making people feel heard and validated is one of the main avenues to engagement, whether in delivering a service or participating in action on the ground. As I learned at the start of my impact journey in 2009 with Instituto Elos, mobilisation through the creation of bonds may seem like a small detail — but it completely changes the quality of interaction.
Now, in a different phase of my impact work, as a board member and heading up philanthropy for the family foundation Be The Earth since 2020, affection and active listening continue to guide my actions.
In my ongoing quest for coherence between what we say and what we do, we operate solely through a relational logic. Whether the investment is philanthropic or not, we offer our partners support beyond financial resources, such as institutional strengthening, capacity building, relevant connections, and self-care. Trust is key to change, and this trust is reflected in the flexibility to renegotiate deadlines when needed (in the case of investments and loans), or in offering unrestricted funding for individuals and organisations for up to three years.
We also decentralise decision-making for beneficiaries through programmes and partnerships, inviting those on the frontline to decide where and how to allocate half of our philanthropic budget. This ensures resources reach those who wouldn’t otherwise have access through formal channels.
We have many stories (and numbers!) that show the power of this approach — and I dare say that systemic change will only happen if it is relational.