Earlier this year, a stunned nongovernmental organization leader told me that her organization had received an unsolicited, multimillion-dollar donation from philanthropist MacKenzie Scott. This leader was one of the many grant recipients who received a slice of the billions Scott gave away in 2021.

It wasn’t just the size of the donations that was so remarkable; it was also the way they were given. There were no complex grant applications and no restrictions on how to use the funds. It was a large-scale example of “frictionless giving”— a trust-based approach where funding flows fast to where it’s needed and can be quickly put to good use.

Frictionless giving isn’t just for billionaires and big companies. Small- to medium-sized enterprises (SMEs) have a huge role to play in transforming giving for greater impact as well. People are often surprised to learn that many SMEs outperform their bigger counterparts around giving. SMEs donate 250% more to nonprofits and community causes than larger companies, and 75% of small-business owners donate an average of 6% annually, according to data compiled by SCORE, a network of volunteer business mentors.

As the pandemic hit, my fashion company was ready to pivot fast to address the increased demand for our contemporary casual fashion. At the same time, my foundation was also able to respond quickly to the needs of grassroots nonprofits that were providing Covid-19 relief efforts on top of their ongoing programs. Through this experience, I've seen there are some ways your business can begin to develop its own frictionless giving strategy.

  • Empower, rather than restrict.
  • Redefine accountability.
  • Be an ally.

Read the full article about giving strategies by Suzanne Lerner at Forbes.