Redefining Support: The Core of Trust-Based Philanthropy
In the dynamic landscape of philanthropy, we are witnessing a profound shift that is reshaping the conventional interactions between donors and recipients. This transformation is being led by the principles of trust-based philanthropy, an approach that emerged in 2014 through the pioneering efforts of the Whitman Institute (TWI). This initiative was born out of feedback from grantees who expressed concerns about the inefficacies within the prevailing grantmaking system.
At the heart of trust-based philanthropy lies a commitment to fostering a philanthropic environment that is more equitable, transparent, and collaborative, moving away from the traditional, often unilateral, methods of giving.
This begs the question: What exactly is trust-based philanthropy, and what are the key principles that define this innovative approach? Moreover, how effective is it in practice? To fully appreciate the impact of this shift, it is essential to first understand the ethos and foundational tenets of trust-based philanthropy and how it diverges from conventional practices in the world of philanthropy.
Trust-Based Philanthropy Defined
Trust-based philanthropy is an approach that emphasizes the establishment of relationships built on mutual respect, transparency, and shared goals between funders and nonprofit organizations. It challenges the conventional power dynamics in philanthropy by treating grantees as equal partners, recognizing their deep understanding of the communities they serve, and valuing their expertise in addressing social issues. This approach seeks to dismantle the traditional transactional nature of funding and replace it with a model that fosters long-term collaboration and empowerment.
But what does trust-based philanthropy look like in practice? Here are six principals often guiding trust-based philanthropy:
Give Multi-Year, Unrestricted Funding: This principle advocates for providing nonprofit organizations with long-term financial support without stringent restrictions, allowing them the flexibility to allocate funds where they're needed most and adapt to changing circumstances.
Funders do the Research: Funders take on the responsibility of understanding the organizations they support, their missions, challenges, and the contexts in which they operate, reducing the burden on nonprofits to constantly prove their worth or fit into a mold governed by the funder.
Simplify & Streamline Paperwork: By reducing the complexity and volume of grant applications and reporting requirements, funders can alleviate the administrative burden on nonprofits, freeing them to focus more on their impactful work. I.E. Funders can remove the “LOI” process, or give through grassroots support, they can accept grant requests via the phone or similar.
Be Transparent & Responsive: Funders are encouraged to be open about their processes, criteria, and decisions, and to maintain open lines of communication with grantees, fostering a culture of honesty and constructive feedback.
Solicit & Act on Feedback: This principle emphasizes the importance of listening to and learning from grantees, using their insights to improve philanthropic practices and better support their work.
Offer Support Beyond the Check: Recognizing that financial support is just one aspect of empowerment, this principle involves providing additional resources such as networking opportunities, professional development, strategic advice, and capacity-building support to help nonprofits thrive.
Kara's Perspective: A Testament to Trust-Based Philanthropy
Having worked closely with both proponents and skeptics of trust-based philanthropy, Kara offers a unique insider's perspective on its tangible benefits. Her experience underscores the productivity and effectiveness of philanthropic efforts when grounded in trust and collaboration. "Trust-based philanthropy isn't just a theory; it's a practice that assesses the real impact of funding on nonprofit success," Kara notes. "It's about asking the right questions, ensuring that the support provided truly aligns with the goals and needs of the nonprofits."
As a seasoned fundraiser turned consultant, Kara finds the trust-based approach not only refreshing but essential. "Sitting in a room where funders and nonprofits view each other as partners with a shared mission is incredibly powerful. It reminds us that at the end of the day, we're all here to serve and uplift communities."
Kara's vision for the future of philanthropy is one where the term 'trust-based' becomes redundant because trust is inherently woven into the fabric of philanthropic endeavors. "My hope is that we can evolve to a point where philanthropy, by default, is synonymous with trust. Making this dream a reality would mark a significant milestone in our collective journey towards more impactful, inclusive, and empathetic support systems."
