The Roots and Rise of Trust-based Philanthropy

The tide finally began to turn in 2020, when, in response to the COVID-19 pandemic, political turmoil, and global uprisings for racial justice, funders began to reexamine their work at every level. Many dropped onerous reporting requirements. They moved money quickly, with fewer strings attached. They converted restricted grants to general operating support so nonprofits could pivot to meet unforeseen needs.

Of course, sector-wide change does not happen spontaneously. Years prior to the sea change of 2020, a small group of funders had been organizing around a shared approach rooted in trust and collaboration. They listened deeply to what nonprofits needed. “Trust us” was the message from nonprofits. Following that cue, these funders pooled their time and resources to influence others. Inspired by their vision and motivated by my personal experience, I joined them in building the campaign that would eventually become the Trust-Based Philanthropy Project.

The Project launched in 2020 with humble aspirations to promote six grantmaking practices to alleviate funder-grantee power dynamics. Since then, we have inspired hundreds of funders to embrace unrestricted funding, streamlined paperwork, and support beyond the check. We have shifted the narrative around conventional practices while providing tools and resources for operationalizing trust-based giving.

One insight we have gleaned is that making changes in practice is relatively easy. But trust-based philanthropy goes much deeper than grantmaking. We envision a future where nonprofits and communities are celebrated as essential contributors to social change. This trust-based future requires shifts in philanthropic mindsets and cultures, as well as the structures that scaffold them. It requires funders to relinquish their individual power to achieve a more equitable and democratic future.

Fortunately, more philanthropic leaders are stepping up to do the bold, rigorous, and infinitely more rewarding work of institutional change. They are reimagining traditional roles and structures in radical ways, including transforming organizational cultures from corporate to community-centric. These leaders recognize nonprofit health and well-being as a major ingredient in advancing social progress.