I’ve worked in the nonprofit sector long enough to hear this more times than I can count from everyone: fundraisers, volunteers, and even well-intentioned donors: “Intermediaries are hard to fund.” … And honestly, they aren’t an easy sell.
But, whoa, before we really get into it. Let’s agree on a shared definition of what an intermediary is: An intermediary is an organization that operates between funders and nonprofits which are direct service providers to offer funding, technical assistance, capacity building, policy support, and field coordination.
Intermediaries often:
- regrant or redistribute funding from institutional donors to frontline organizations
- build capacity through training, shared services, or consulting
- aggregate data or conduct research to inform practice or policy
- coordinate networks or coalitions for collective impact
- advocate for systems change on behalf of a field or sector
Now that the definition is squared away. Let’s dig in further: Why is fundraising for an intermediary so hard? You can’t point to a single classroom, a smiling child, or a brand-new home and say, “That’s what we did.” Intermediary work often happens behind the scenes. It’s more abstract, more complex, and harder to photograph. You don’t get the same emotional payoff as you do from direct service work, and that makes the fundraising case more challenging.
But here’s the thing: it’s also some of the most important work in the nonprofit sector today.
I say that as someone who’s been in it. I’ve worked for United Way (twice), New Profit, and advised many clients who are intermediaries. And the farther I go in my career, the more I believe this is where the real leverage lives.
Intermediaries connect people and institutions that wouldn’t otherwise find each other. They move capital, build infrastructure, shape strategy, and strengthen the field so frontline organizations can focus on serving their communities. They’re the ones thinking about systems, alignment, capacity, and sustainability.
And yet, when it comes to funding, intermediaries are often compared to direct service organizations in ways that don’t reflect how each really works. Funders sometimes ask, “Why would I give to an organization that doesn’t serve people directly?” That’s the wrong question. A better one might be, “What kind of infrastructure is needed so more people can be served well?”
Funding a direct service organization is different from funding an intermediary, and the approach to fundraising should reflect that.
Direct service organizations offer emotional immediacy. You can draw a straight line between a gift and a tangible result: meals delivered, students tutored, housing secured. Donors respond to that clarity and connection. These organizations are often well-suited for grassroot giving, individual appeals, and fundraising events that rely on storytelling.
Intermediaries require a different kind of conversation, one that centers scale, strategy, and systems. We’re often working across dozens or even hundreds of partners, helping them do their work better. That may mean building shared services, running regranting programs, coordinating technical assistance, or advocating for smarter policy. The impact is real, but it’s collective. And it doesn’t fit neatly into a photo caption or gala video.
That means fundraising looks different too. Intermediaries often rely more on donors with deeper capacity; who are willing to spend the time learning, thinking, and getting intellectually involved and institutional funders (like foundations, collaboratives, and corporate partners) who are looking to move capital efficiently, align with broader systems, and invest in long-term change. The pitch is about leverage: how one gift unlocks or strengthens many.
Why Fund Intermediaries?
If you’re a donor, funder, or board member wondering whether to support an intermediary, here’s what I’d offer:
- They multiply your impact. One well-placed investment can support dozens, or even hundreds, of nonprofits, coalitions, or communities.
- They build what doesn’t exist yet. From shared infrastructure to regranting strategies to field-wide learning, intermediaries often create the conditions for others to succeed.
- They take the long view. Many small nonprofits are focused on immediate needs. Intermediaries look ahead at what the sector will need in the future and start building it.
- They help the sector grow smarter. Through data, convenings, and shared tools, intermediaries raise the bar for what’s possible and help others do the same.
- They’re trusted by both sides. A good intermediary speaks the language of grassroots leaders and institutional funders. They build bridges that wouldn’t otherwise exist.
The Fundraising Pitch: Yes, and…
When I talk to funders, I often say: “yes, fund our work AND…” fund the organizations we support.
This isn’t about taking resources away from frontline groups. It’s about making sure more gets to them, and that it gets there faster, more effectively, and with the right infrastructure behind it. Intermediaries often do the unglamorous work that enables frontline partners to thrive: aligning fragmented systems, creating back-office efficiencies, streamlining capital flows, and holding space for collaboration.
It’s not either/or. It’s a yes, and.
Why Work for an Intermediary?
If you’re a fundraiser, strategist, or nonprofit leader thinking about your next role, I’d encourage you not to overlook intermediaries. You get both a bird’s-eye view and a front-row seat. You learn how systems connect (or don’t), how capital moves, and how to align people with very different priorities. You think about strategy, policy, and capacity, but you’re still grounded in community impact. If you like to build, not just programs but the structures that help others grow, this is a great place to be.
The Bottom Line
Yes, it’s harder to tell the story. Yes, it takes more explanation. But funding intermediaries may be one of the highest-impact ways to drive change. So ground yourself in that. Spend the time making the case. And help others see what many of us already know: Intermediaries aren’t just supporting what happens behind the scenes. They’re building the stage.