By Giving Money Without Lots Of Obligations Some Funders Are Embracing ‘Trust-Based Philanthropy’
With most foundations, the board of directors and top executives set all funding priorities. Nonprofits seeking money from those funders, in turn, must demonstrate an intention to do work that conforms to those priorities. The same system prevails with many individual wealthy donors.
Any nonprofit awarded a grant must follow the funder’s priorities and comply with all of its reporting requirements – which, with some foundations, can be very time-consuming.
Funders, rather than the communities they aim to support, hold most of the power in this arrangement. That can steer priorities in the wrong direction because the organizations that deal primarily or exclusively with those issues are probably more aware of what’s going on and what works best.
I’m studying the growing number of foundat...