Non-governmental organizations (NGOs) in the fashion industry are facing challenges in securing funding as funders now prefer program-specific funding over general year-round support. This shift has made it harder for organizations to access core funding, with most money being tied to specific projects. Shruti Singh, director of Fashion Revolution India, explains that this constant need to fundraise for projects limits their ability to build stable capacity and systems.
Project-based financing has led to increased scrutiny on salaries and overheads, with funders demanding “demonstrable, measurable, and tangible” results for their investments. This poses a challenge for organizations engaged in advocacy work, as the impact of influencing mindsets and policy conversations may not always be easily quantified in traditional grant metrics.
Christina Dean, founder of Redress, a Hong Kong and UK-based NGO, highlights the growing reporting requirements and due diligence from funders. She notes that funders now want more value for their money, leading to heavier reporting burdens on organizations. Last year, Redress had to cut its team by a third in response to funding delays and continues to face funding challenges.
In response to these funding challenges, organizations like Clean Clothes Campaign (CCC) and Remake have chosen not to accept funding from fashion brands to maintain their independence. As watchdog organizations, they prioritize maintaining impartiality and integrity in their work. Fashion Revolution has also established an Ethical Funding Policy for brand partners to ensure transparency and ethical practices in their collaborations.
Finding alternative funding sources has become crucial for NGOs in the fashion industry. While some investors suggest seeking funding from fashion brands for consulting services, organizations like CCC and Remake remain committed to their principles of independence. Redress, on the other hand, collaborates with brands on initiatives such as clothing collection programs in Zara stores around Hong Kong, but this is not a reliable funding source.
Overall, the changing landscape of funding in the fashion industry is forcing NGOs to adapt and find alternative sources of support to continue their important advocacy work. By prioritizing transparency, independence, and ethical practices, these organizations are navigating the challenges of securing funding in a competitive and demanding environment.
