A Matter of Trust
Trust-based giving is a philanthropic approach that emphasizes building strong relationships between donors and grantees. Rather than focusing on strict requirements, restricted grants or endless reporting, trust-based giving emphasizes open communication, collaboration, and flexibility. According to the Center for Effective Philanthropy, half of non-profit leaders expressed an increase in trust since the pandemic, making this a growing practice within the field.
Benefits of Trust-Based Giving
One of the primary benefits of trust-based giving is that it can help to build stronger relationships between donors and grantees. By emphasizing open communication and collaboration, trust-based giving can help to create a more supportive and productive relationship between donors and grantees. This can help to foster a deeper understanding of the issues and challenges facing grantees, and can lead to more effective and impactful philanthropy.
Another benefit of trust-based giving is that it can help to promote innovation and flexibility. By focusing on outcomes, trust-based giving can provide grantees with the flexibility to experiment with new approaches and adapt their strategies as needed. This can help to foster a more dynamic and responsive approach to philanthropy, and can lead to more effective and sustainable solutions to social and environmental challenges.
Tips for Adopting a Trust-Based Giving Approach
If you are interested in adopting a trust-based giving approach, there are several steps you can take to get started. Here are some tips to help you develop a more collaborative and flexible approach to philanthropy:
Build Relationships: Start by building strong relationships with your grantees. This may involve regular communication, site visits, and other opportunities to learn more about their work and the challenges they face.
Listen and Learn: Take the time to listen to your grantees and learn from their experiences. This can help you to better understand the issues and challenges they face, and can inform your philanthropic strategy and decision-making.
Provide Flexible Funding: Consider providing flexible funding that allows grantees to use the resources in ways that best meet their needs. This may involve providing general operating support, multi-year grants, or other forms of flexible funding.
Emphasize Outcomes: Rather than focusing on strict requirements or metrics, emphasize outcomes and impact. This can help to create a more collaborative and responsive approach to philanthropy, and can lead to more effective and sustainable solutions to social and environmental challenges.
Collaborate and Share Knowledge: Look for opportunities to collaborate with other donors, grantees, and stakeholders. This can help to build a more supportive and collaborative philanthropic ecosystem, and can lead to more effective and impactful philanthropy.
Conclusion
Trust-based giving is a powerful approach to philanthropy that emphasizes building strong relationships between donors and grantees, promoting innovation and flexibility, and prioritizing outcomes and impact. More importantly, it helps to shift power from the funder to the grantee (and by extension, communities and individuals best served by grant-making) which is a more inclusive posture. By adopting a more collaborative and flexible approach to philanthropy, donors can create a more supportive and productive relationship with their grantees, and can help to foster more effective and sustainable solutions to social and environmental challenges. Whether you are a seasoned philanthropist or just starting out, adopting a trust-based giving approach can help you make a meaningful difference in the world.
