From Transactions to Trust: Evolving Philanthropy to Empower Communities
By Angela Kahres and Erica Weinberg
For too long, philanthropy has measured effectiveness by dollars moved and reports submitted. But the most transformative impact happens when funders reimagine how they show up: as partners, not gatekeepers. Trust-based philanthropy offers a framework for doing just that. By shifting practices—toward flexibility, transparency, and shared decision-making—funders not only strengthen individual organizations, they contribute to healthier ecosystems where communities can thrive.
As Shaady Salehi, Executive Director of the Trust-Based Philanthropy Project so neatly puts it, “if a funder or philanthropist is interested in addressing a challenge or an opportunity in a community, it must be informed by the people who are experiencing that challenge or opportunity.” The good news is that big change doesn’t always necessitate sweeping reform; often, it begins with pragmatic adjustments that place trust, equity, and collaboration at the heart of grantmaking.
From our experiences working with both foundations and nonprofits, here are several practices that can move your grantmaking toward a more trust-based approach:
Provide Flexible, Multi-Year Support
Flexible, long-term funding is one of the most powerful ways to demonstrate trust. Unrestricted dollars allow organizations to strengthen their infrastructure, support their people, and pivot when circumstances change. Multi-year commitments reduce uncertainty and free grantees to focus on strategy instead of survival.
In practice: Consider shifting program grants into fully general operating support, extending grant terms for long-time grantees, and/or aligning grant periods with organizational or programmatic milestones rather than foundation calendars.
Streamline Processes and Reduce Burdens
The application and reporting process is often a significant drain on nonprofit time and resources. Trust-based philanthropy calls for right-sizing requirements to reflect what is truly useful to funders and grantees alike.
In practice: Audit your current proposal and reporting templates. Eliminate unnecessary requests, shorten narratives, and accept materials organizations have already developed for other funders or purposes (budgets, annual reports, strategic plans). Talk to grantees about what they do or do not prefer in terms of grant applications and reporting. Suggest alternatives like phone check-ins, video submissions, or attending grantee events as ways to learn without adding paperwork. Consider tailoring processes to each grantee’s preferences.
Embrace Community-Led and Participatory Practices
Communities are best positioned to articulate their own needs, priorities, and solutions. By embedding listening and sharing power with community, funders gain richer insights, strengthen legitimacy, and advance equity.
In practice: Bring community members into decision-making processes, whether through advisory committees, participatory review panels, or board representation. Invest time and resources in listening sessions or learning circles with local leaders to create spaces for trust- and relationship-building.
Center Relationships Over Transactions: Practice Transparency & Share Power
Grantmaking is not just about funding programs; it’s about building long-term partnerships rooted in mutual respect. A relational approach encourages transparency, honesty, and shared problem-solving.
In practice: Foster two-way communication. Share openly about your foundation’s strategy and decision-making processes. Provide candid feedback when declining proposals, and invite the same candor from grantees. Check in outside of reporting cycles to ask what they need most—and take appropriate action as needs change.
Support Organizational Health and Staff Wellbeing
Nonprofits are only as strong as the people who lead and sustain them. Investing in staff development, leadership, and organizational culture is not overhead—it’s essential to long-term impact. A commitment to healthy workplaces creates spaces where community and programs can thrive.
In practice: Make clear that grants can support professional development, coaching, sabbaticals, or wellness initiatives. Support peer-learning communities or convenings where organizations can share strategies and strengthen networks. Inquire about organizational wellbeing and staff needs, following through when needs emerge.
Use Your Voice & Influence
In addition to their dollars, funders often hold positions of influence in their communities. Speaking out in your own circles can advance and deepen the impact of your grantmaking.
In practice: Work in partnership with grantees and community to develop appropriate venues and messages that you can use to speak out. This might take the form of a public statement in solidarity, encouraging other funders in your circles to support key projects, or connecting with levers of power that your community members may not otherwise be able to access.
Commit to Learning and Adaptation
Just like any long-term relationship, trust-based philanthropy is not a static checklist—it’s an ongoing practice that requires growth and adjustment over time. Funders who stay curious, test new approaches, and learn alongside grantees are better equipped to respond to complex challenges as they emerge.
In practice: Regularly seek feedback from grantees, not only about grantmaking processes but also about how the foundation shows up as a partner. Share what you’re learning publicly so others can benefit from your experimentation and insights.
Moving Forward
The path toward trust-based philanthropy is iterative. It doesn’t require a full overhaul overnight, but it does require funders to embrace humility, shift practices, and be willing to share power. By making intentional changes—whether through flexible funding, participatory practices, or transparent communication—funders can foster stronger relationships, more resilient organizations, and deeper community impact. Reach out if you would like to think through how you can embed trust-based principles in your grantmaking!
