It should go without saying that families who embark on philanthropy together have good intentions—to give back to  communities where families live and have made their wealth, to make a difference in the world, and to provide a place where the family can engage in collective good work. And yet, good intentions are not enough, and all too often philanthropic efforts result in unintended outcomes, and sometimes even harm to the intended beneficiaries. Opportunities for families to lean into and learn from a practice of accountability exist in the gaps between intentions and outcomes.  

What do we mean by that? As described in our Guide for Effective Family Philanthropy, accountability is a critical foundation for trust-building, healthy relationships, and recognizing and mitigating power dynamics. However, there are relatively few forces truly holding philanthropy accountable. There are minimal legal requirements for private foundations or donor-advised funds; philanthropy doesn’t have shareholders in the manner of public companies; nonprofits are dependent on philanthropy for grants, which makes it challenging for them to hold philanthropy accountable in any meaningful way; and there are—at best—nominal requirements for philanthropy to be transparent about its actions.

Yet, truly effective family philanthropy leaders and practitioners voluntarily accept and address accountability in purposeful and profound ways. Why? And how is this an advantage?  

The Benefits of Accountability

Families that ground themselves in asking and answering the question, “to whom are we accountable?” recognize that they are accountable to the general public; that the assets they are stewarding are set aside to advance positive change in communities, not for personal interests. Questions of accountability also recognize that philanthropy operates within a set of complex systems of communities, peoples, public policies, and history, and is not functioning within the narrow bounds of a single family. 

If you embrace accountability, you free yourself from the trap of perfection. It is easy, as a funder, to believe that you have to be perfect or mistake-free (i.e., that every grant has to achieve exactly what you think it will).  In a framework of accountability, if you act in good faith, in partnership with community and people with lived experience, and are willing to accept that things may go differently than you expect, you learn from those unexpected outcomes, accept responsibility, and move forward with new knowledge and stronger relationships. A posture of accountability affords you the freedom to take risks, make mistakes, and be innovative—making you a more effective funder.  

Read the full article about accountability in philanthropy by Miki Akimoto and Ashley Blanchard at the National Center for Family Philanthropy.