I want to be crystal clear about one thing — the pandemic sucked. It was March 2020 when our collective worlds were toppled over and it seemed everything changed. Those changes were certainly acutely felt in the nonprofit world. I run food pantries, how exactly do you do that from a remote location? And then I had to take the temperature of my employees everyday? Each day felt like a month.
But if there is one silver lining from that time, it was that our foundation partners and long time donors stepped up to help. Especially our foundation partners. For a fleeting moment, we were living in a world of trust-based philanthropy. No forms, no charts, no formal requests. We could pick up a phone, describe our challenge and we knew our partners would support us. I don’t long for the pandemic — but I certainly long for a return to trust-based philanthropy.
Understanding Trust-Based Philanthropy
Trust-based philanthropy is a paradigm shift in how funders and grantees interact. At its core, it champions the principles of unrestricted funding, streamlined paperwork, and a relationship that transcends financial transactions. It's a call to dismantle the power imbalances that have long characterized the funder-grantee dynamic, advocating for a partnership built on mutual respect and shared goals.
For small nonprofit leaders, who often bear the brunt of onerous reporting requirements and restrictive funding, this movement is not just welcome; it's necessary. It acknowledges the undue burdens placed on nonprofits and seeks to elevate their work by trusting them as experts in their fields.
While it will really take our funders to help return to return to trust-based philanthropy, I think there are some strategic steps the small nonprofit leader can take.
Recommendations for Small Nonprofit Leaders
Embrace Your Expertise: Remember, you are closest to the work and understand your community's needs better than anyone. Use this knowledge to confidently articulate the importance of unrestricted funding in achieving your mission.
Cultivate Relationships: Shift your perspective on funders from transactional to collaborative partners. Seek to build relationships based on mutual respect and shared values. Remember, it's about more than just the money; it's about building a community committed to social change.
Streamline Your Operations: Trust-based philanthropy also calls for operational efficiency within your organization. Seek ways to reduce bureaucratic overhead and allocate more resources directly to mission-driven activities.
Advocate for Change: Be vocal about the benefits of trust-based philanthropy, not just within your organization but across the sector. Share your stories of success and challenge to inspire others and build momentum for this cultural shift.
Invest in Well-being: Recognize the importance of your team's health and well-being. A sustainable organization is built on the foundation of a supported, energized, and committed team.
Leverage Collective Power: Remember, there's strength in numbers. Join or form coalitions with like-minded organizations to amplify your voice and influence the broader philanthropic landscape.
Seek Continuous Learning: Trust-based philanthropy is as much about learning and adaptation as it is about funding. Engage in continuous dialogue with your partners, peers, and communities to learn and evolve your practices.
Final Thoughts
The journey towards a more just, democratic, and effective philanthropic sector is long and fraught with challenges. Yet, the trust-based philanthropy movement offers a promising path forward, particularly for small nonprofit leaders who often feel the most constrained by traditional funding models.
By adopting a trust-based approach, small nonprofits can not only secure the resources they need but also build more equitable, sustainable, and impactful organizations. It's an invitation to reimagine the future of philanthropy, where funders and grantees work side by side, driven by a shared commitment to social change.
In the spirit of trust-based philanthropy, let's move forward with courage, openness, and a steadfast belief in the power of collective action. Together, we can create a philanthropic ecosystem that truly serves the common good.