For philanthropists, foundations & catalytic capital
SundRoot turns philanthropic capital into a self-reinvesting cooperative economy that funds the needs of local societies. Your contribution isn't consumed by yet another short-term project — it becomes permanent infrastructure that funds wave after wave of enterprises and initiatives. You're starting a self-going and self-replicating engine.
The philanthropist's dilemma
You know the pattern: a three-year project, a final report, a thank-you — and then it all starts over from zero. The capacity was built and then lost. Positive ripple effects were rarely brought back home to reward the project to keep going. NGOs and non-profits are dependent on an inherently extractive economy that does more damage from its structural injustices than any charity can then recoup and fix.. You know this doesn't work. But what's the alternative?
The question that keeps you up: what would actually create lasting change?
Philanthropy's new role
Today's philanthropy is stuck constantly funding new crisis projects — band-aids on wounds created by a sick system. When philanthropic capital steps into SundRoot's vision, a shift occurs: from managing the consequences of inequality to transforming the structures that create it. The capital becomes the seed in a self-sustaining ecosystem model. The initial support enables the startup of local funds, networks of locally rooted enterprises, ecosystems that foster democratic businesses — all of which in turn contribute to common funds that lift every neighborhood, especially those that need it most.
Philanthropic capital starts the economic engine that is both fair in its core operations and contributes simultaneously to the broader ecosystem. This creates reinvestment loops and positive feedback mechanisms that make the ecosystem grow, giving more and more people access to dignified livelihoods, nice neighborhoods with community, greater ownership, hope and agency over their lives. This builds on creating smarter community and societal governance from the grassroots and up that involves collective intelligence and includes participants, the affected, the knowledgeable — coordinating knowledge, skill, capacity and resources toward needs, problems and opportunities that arise.
The philanthropic capital helps establish the local funds where a share of every locally rooted business and cooperative's profit is reinvested in common good. Suddenly, a one-time donation transforms into a perpetual stream of resources. The money once given as a grant now begins to generate its own surplus, funding education, new cooperatives and social mobilization year after year, without needing to ask for new grants.
Through this, philanthropic capital enables something radical: it frees time and energy for people to stop chasing survival and start creating. It creates space to live, discover and invent solutions to shared problems. Instead of being recipients of charity, people become owners of their own future — with democracy in everyday life and power over their own living conditions.
The end result is that every crown invested multiplies over time. The philanthropic capital becomes not a bandage, but the cornerstone of a resilient, locally rooted community system where dreamworlds take root in reality and where the economy serves life — not the other way around.
Why this is different
When you give a project grant, the money goes in, does its work, and disappears. When you seed capital into SundRoot's ecosystem engine, it stays and works — forever. Surplus from the cooperative enterprises flows back to the fund. Verified societal savings flow back. Every crown you put in works over and over again. You're not spending — you're activating a structural shift in ownership, power, and governance to serve the people, nature and future generations.
Here's what the difference looks like in practice:
How to engage
Depending on your appetite, timeline and mandate, there are several ways to engage. All of them activate the same engine — the difference is how deep and how early you go.
The earliest capital that enables the first steps and funds the ecosystem's shared infrastructure — shared services, incubation, education and the cooperatives' startup, transition or expansion. The capital here is trust-based and is not expecting to generate a financial return, but rather to contribute to long-term societal benefits.
What you get
Follow things openly on Open Collective. Welcome to check in on the ecosystems developments on one of the monthly gatherings. A special happening once half a year on the status of the ecosystem. Your contribution is visible as the capital that started the engine.
Fund a specific wave of enterprises — for example the launch of Händiga Laget, Delstuga and the housing fund, or the education programme with folk high schools. You know exactly what your capital activates.
What you get
Measurable milestones for the specific wave. Direct reporting on the enterprises' progress. Opportunity to visit and see the work up close.
Blended finance
Philanthropy takes the first step. This then attracts other types of investments, sponsors, and partnerships. The initial philanthropic effort sets the ecosystem in motion, which then matures enough to attract investments that can even get a financial returns alongside positive societal effects. You invest alongside other foundations, funds, institutes, and public sector actors in a blended finance structure where each participant contributes according to their own appetite and objectives.
What you get
Participation in a blended finance structure where your risk is shared with institutional partners. Structured reporting for both capital types.
The Engine
Proven precedents — through a philanthropic lens
The model invents nothing from zero. Every mechanism has already worked for decades, at scale, on different continents. Here are the proven precedents — and the role catalytic capital played in each case.
80,000 worker-owners, over 100 cooperatives. Its own bank pools savings and finances the next cooperative. Nearly 70 years of proof.
Catalytic role
Started with community savings and a priest's conviction — capital from the grassroots combined with shared plan to lift their local society. Catalytic capital in the form of money, time, trust and community building.
Over 500 businesses funded by thousands of small savers — shops, pubs, energy. 92% still operating. One vote per member, not per pound.
Catalytic role
Co-operatives UK — itself a foundation-backed organisation — built the legal framework, tools and support that made the model possible. Philanthropic capital funded the infrastructure, not individual projects.
Preventive asthma care in Fresno: fewer ER visits, thousands of dollars saved per child — and the saving repays the investors. Prevention became profitable.
Catalytic role
Philanthropic capital and government funds took the first risk in the outcome contract. Institutional investors came in only after the model was proven. Classic catalytic role — taking the risk others won't.
Community currencies backed by real local productive capacity — not debt. Over a decade in operation. The model that SundRoot wants to explore and adapt to Malmös neighbourhoods in the future.
Catalytic role
Early support from international foundations and grants financed the prototype. Without that catalytic capital, the community currency system could never have been proven in practice.
Hospitals and universities direct their procurement to local worker cooperatives. Purchasing power that used to leave the city — stays and builds it.
Catalytic role
The Cleveland Foundation, a local foundation, took the initiative and funded the feasibility study. Philanthropy saw the opportunity before institutions dared. Without the foundation's catalytic capital, Evergreen would never have started.
From zero to 2,500 employee-owned companies in ten years — 560 new in 2024 alone. The right incentives at ownership transitions move whole companies into common ownership.
Catalytic role
The tax relief in the UK Finance Act 2014 was created through years of lobbying funded by foundations and cooperative federations. Philanthropic capital financed the policy that made the model possible.
Honesty about risks
Philanthropists respect honesty. Hiding risks under visionary language helps no one. Here are the real risks — and what we're doing about them.
The ecosystem is in its early phase. The first cooperatives are running, but surplus has not yet flowed back and been reinvested in a second wave. The full chain reaction hasn't happened yet.
Our stance: The design is proven (Mondragón has run it for 70 years), but the transition from theory to proof takes time. Your contribution funds exactly this proof.
The first waves need capital that can wait. Before the cooperatives are profitable and societal savings are verified, the engine needs external input. This is the philanthropic phase — it doesn't last forever, but it takes time.
Our stance: Our estimate is 3–5 years before the first reflow. We're open about this. You should know what you're buying into — and when the engine starts carrying itself.
The collaboration with effektfullt.org and academia is in an exploratory stage. Independent measurement of societal effects — the half of the return that makes the model unique — is not yet fully operationalised.
Our stance: SROI research shows 3:1–5:1 social value for high-quality social programs. We're not building on empty promises — we're building on established research. But operationalising the measurement takes time.
SundRoot is anchored in the Malmö region. Replicating the model in other regions and cities is part of the path forward. It's a vision grounded in the toolbox, not a success yet.
Our stance: The model's components have been proven independently in other places. SundRoot's contribution is bringing them together. But each new context requires adaptation.
The road to self-sufficiency
That's the question that separates catalytic capital from grants: at some point the engine has started and can be more self-sufficient. Here's that timeline — and when you can expect your contribution to start working without you.
Now — in motion
Cooperative network, technology cooperative, women's cooperative in Lindängen, shared services. This is what your seed capital activates today.
Your role: You fund the infrastructure that makes everything else possible.
2026–2027
Händiga Laget, Delstuga & housing fund, courses and incubation with adult education. Target: 3–5 cooperatives per year. A living ecosystem with lots of momentum.
Your role: You fund specific waves of enterprises — and see concrete results on the ground.
2027–2029
Local funds for different neighborhoods, city fund for all of Malmö, impact measurement and SROI with effektfullt.org, investment platform. Blended finance kicks in.
Your role: Institutional capital starts following. Your risk is shared. The blended finance structure makes your contribution less critical — but more proven.
Horizon
A regional economic engine that drives itself. An impact token that records and rewards benefit. A model that can be replicated in more regions.
Your role: Your catalytic role is fulfilled. The engine is self-going. The capital you seeded is still working — but now it drives itself.
This is what 'catalytic' means: you start something that then is self-sustaining. It's the opposite of dependence.
Due diligence & transparency
We know you need more than a good story. You need material for decisions, reporting and review. Here's what we can offer — already today, and what's developing.
The SundRoot Fund lives on Open Collective where every crown — in and out — can be followed openly in real time. No black boxes. Massvis.se is the fiscal host and handles administration.
Open Open Collective →Societal effects are to be measured by an independent party — not by us. A collaboration we want to explore with effektfullt.org and academia. SROI research shows 3:1–5:1 social value for high-quality social programs — we build on established science, not self-reported claims.
SundRoot's model is documented openly on Bloom Network — a platform for system shifts. You can read the entire model, the mechanisms and the philosophy before we even talk.
Read the documentation →Key takeaways
Philanthropy goes first and carries the early investment. That lets institutional capital, public funds and financial capital dare to follow.
Surplus and verified societal savings flow back to the fund and are reinvested in wave after wave of enterprises and initiatives. The same money works over and over instead of running out.
Instead of funding a project that ends, you build the common backbone — shared services, funds and networks — that makes the whole ecosystem more efficient, resilient and stronger.
Your capital builds upon a lively ecosystem
Take a look at the cooperative ecosystem in Southern Sweden. Building on rich traditions. Bringing us all together into a common network to spur next exciting developments of this lively and impactful ecosystem.
See the full picture — initiatives, roadmap and ecosystem →Let's explore
We're open to collaboration with philanthropists, foundations and catalytic capital who want to contribute to effective and lasting societal change. Reach out — and we'll explore together what it could become. No sales pitch, no pressure — a conversation about how your capital could become catalytic.