Ever heard the alternative golden rule, “He (or she) who has the gold makes the rules”?
In recent years, a topic of conversation among some nonprofit leaders made its way into the board rooms of several major foundations, as well as the pages of the philanthropic press and mainstream media. The topic was an imbalance of power between private funders and their grantees — the organizations doing the work on the ground to change lives.
These conversations, including some deep self-reflection on the part of many major funders, resulted in a renewed interest in trust-based philanthropy to address this inherent power imbalance and build mutually accountable relationships between donors and the organizations they fund.
According to the Trust-Based Philanthropy Project, this philosophy is rooted in a core set of values that includes, among others, sharing power with grantees; collaborating with, rather than dictating to, grantees in a spirit of service; and embracing learning. One outcome of trust-based philanthropy is fewer narrowly restricted grants in favor of unrestricted giving that allows nonprofit leaders to use the money where it will do the most good.
In 2021, Melinda French Gates, co-founder of the Bill and Melinda Gates Foundation and founder of Pivotal Ventures, made an important statement in her pledge letter on The Giving Pledge website. She said, “. . . I’ve also learned how important it is to ensure that the people closest to those problems have a role in designing solutions. It’s much easier to imagine that you have all the answers when you’re sitting in a conference room in Seattle than when you’re face-to-face with a business owner in Nairobi or an indigenous activist in New Mexico . . ..”
Ms. French Gates further stated, “My approach to philanthropy has always been data-driven, and I think it’s important for philanthropists to set ambitious goals and measure our progress against those goals. I’ve learned, however, that it’s equally important to place trust in the people and organizations we partner with and let them define success on their own terms.”
“I’ve also learned how important it is to ensure that the people closest to those problems have a role in designing solutions.”
Melinda French Gates
Most of the buzz around trust-based philanthropy has been centered on major funders like Ms. French Gates, but we should all remember that the definition of “major” depends on the donor. Whatever a major gift is to you, consider whether you wish to restrict that gift narrowly or whether you trust in the recipient organization to use the money wisely for impact you care about, then tell you how it made a difference.