Collaboration and partnership are the cornerstones to accomplishing meaningful impact on pressing social issues. But both are difficult to come by due to the inherent power imbalance that exists in philanthropy, where funders control resources needed to support the wellbeing of communities. Trust is required to foster collaborative partnerships between funders and grantees. But how can trust occur if you don’t know your prospective partner?  

At its most basic, grantmaking is a transactional process that moves money from a funder to a nonprofit organization. At its best, philanthropy operates through a series of trusting, respectful relationships that extend from within the boardroom and among staff members, to the community. Through strong relationships, grantmaking goes beyond the transactional and becomes essential pathways to effective collaboration, partnership and, ultimately, impact. That’s why NCFP believes relationships, along with accountability, equity, and learning, are the four core principles that are required for families to be effective in their philanthropy.  

By building authentic relationships with grantees, funders gain a deeper understanding of needs in their communities and are better positioned to be supportive resources and trusted thought partners working towards common goals of impact. Strong relationships are also vital within families, as open dialogue and the ability to navigate conflict are essential to effective governance.  

To explore how funders can prioritize relationships, both internally and externally, to advance their impact, we spoke to Erin Borla, executive director and trustee of the Roundhouse Foundation. Erin, her parents, and the foundation’s staff members have planted deep roots in the communities they fund and offer an example of how to authentically show up as neighbors and funders. As Erin shares from her own experience, building trusting relationships starts with a simple, but powerful act—asking questions, listening hard to hear the answers, and acting in response to what you heard.  

Read the full article about relationship-building by Erin Borla and Sokol Shtylla at the National Center for Family Philanthropy.