Giving Compass' Take:
- Trust-based philanthropy can help donors address power imbalances and restrictive funding in philanthropy and help bolster equitable investment.
- How can individual donors learn from these practices?
- Read about the future of trust-based giving.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
The core of philanthropy is investing in people. It aims to support communities and individuals for a better world. However, the traditional philanthropy model has received criticism for perpetuating power imbalances, being too restrictive, and not focusing enough on the needs of those it aims to serve. Trust-based philanthropy addresses these issues by redistributing power, simplifying processes, and equitably investing in communities. This article will explore how to use the viable approach for a more equitable sector.
What is Trust-Based Philanthropy?
Trust-based philanthropy reframes grantmaking by dismantling inherent power structures and minimizing disproportionate restrictions. Instead of treating grantees as passive funding recipients, funders implement a collaborative strategy rooted in dialogue, mutual respect, shared goals, and decision-making.
How can philanthropy redistribute power?
Grantmaking often operates top-down, with the funding organization dictating the terms and imposing its goals and objectives on grantees. A trust-based practice emphasizes partnership and building confidence with grantees to identify community solutions. Follow these proven principles to implement a trust-based system with the most significant impact.
Trust-based philanthropy offers a promising alternative to traditional grantmaking, but funders must deal with existing challenges and limitations. A trust-based method is only feasible when the barriers to equitable funding are identified and addressed by funders.
Read the full article about trust-based philanthropy at Fluxx.