Money, power and free lunches: examining foundation–non-profit power imbalances in the context of capacity-building programmes

Financial support from grant-making foundations is seen as a lifeline for UK non-profits, providing security and stability. It may also act as a gateway to capacity-building programmes aimed at improving non-profits’ internal effectiveness. Nevertheless, extant literature recognises how financial grants often create relationships based upon power imbalances, within which foundations occupy the commanding position. Little attempt, however, has been made to understand this tension in respect of capacity-building programmes. This article focuses on the capacity-building programmes of four leading UK foundations. It describes the foundations’ awareness of power imbalances and the perceived consequences of their responses. Data reveal attempts to reduce the impact of the power hierarchy, but suggest strategies are of limited effectiveness: the benefits of capacity building remain linked to non-profit perceptions of foundations’ power. The continuing influence of power imbalances on attempts at foundation–non-profit mutuality is shown and the need for alternative responses highlighted.