Relationships are complicated, and the relationship between funder and grantee is no exception. The funder holds a “position of power” with money and resources at its disposal. Due to its resource capacity and to ensure its ambitions are met, the funder may present itself as knowledgeable and eagerly offer advice and direction surrounding the work of its grantees.

On the other side of the see-saw, the grantee comes from a place of need. This may be a vulnerable position, and funders might inadvertently use this to direct the grantee to a particular path. Funders may have concerns that the grantee will deliver upon its promises or spend grant dollars toward their designated programs, while the nonprofit works tirelessly to fill grant reports and bends over backwards to answer every beck and call of their funders. Ultimately, this power, the “I’ve got what you need” imbalance, may create feelings of distrust and misunderstanding between the parties.  

With trust anchoring this partnership, each partner would speak openly and honestly about their strengths, weaknesses, and expected outcomes. Funders would have the best interest of their grantees in mind. The grantee would recognize that no one’s resources are unlimited and that the funder simply needs to feel confident that its “investment” is being handled effectively. Funders would respect the expertise of the grantee and honor their employees’ time by requiring only essential proposals and progress reports. The grantee would recognize that the funder is compelled (whether legally, morally, or both) to ensure the dollars granted are spent appropriately and as agreed upon. The two parties would work together to match their capabilities to provide an even greater lasting impact.

The first step in developing a trust-based partnership is for the funder to define (or redefine) its mission and values. This step involves discussing the goals of the organization, its founders, and constituencies. After the funder defines its mission and values, it’s important to communicate this message to the entire staff and general public. Grantees will self-select and align themselves based upon the mission and values of potential funders. Throughout the entire process, these mutual values will serve as guideposts for the course of the partnership.

Two foundations that currently institute the practice of trust-based philanthropy are the Robert Sterling Clark Foundation and the Whitman Institute. How do these foundations practice trust-based philanthropy? The Robert Sterling Clark Foundation defines a clear set of values that guides their grantmaking. On their website, they list these values as: equity, trust, humility, boldness, and clarity. They view themselves as partners with their grantees throughout the entire process and recognize their own value beyond funding. Furthermore, the foundation respects their grantees’ time by eliminating lengthy grant reports and proposals. This respect empowers the grantee to conduct their work as they see fit. You can learn more about their approach here.

The Whitman Institute bases their trust-based philanthropy on seven key pillars. Similar to the Robert Sterling Clark Foundation, the Whitman Institute believes that their grantees understand better than anyone the best way to spend their funding. This trust boosts the organization’s confidence and facilitates a healthy, working relationship with the foundation. Additionally, the institute respects the grantees’ time and offers help, assistance, and guidance whenever needed. Communication is at the core of their work.

We must remember that “with great power comes great responsibility.” As foundations and organizations with financial and human capital resources, we must remember our responsibility to serve the community in a fair, honest, and respectable manner. If we approach grantee relationships from a position of trust, we will facilitate a long-lasting partnership that will benefit those in need for years to come.

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