Traditional philanthropy often focuses on control, strict guidelines, and detailed reporting, which can create barriers for small, grassroots organizations. These organizations usually have deep connections within their communities and understand local needs better than anyone else. Yet, the typical funding model can unintentionally stifle their impact by demanding rigid accountability measures and short-term results.
What is trust-based funding?
Trust-based funding flips the conventional model on its head. Instead of imposing restrictive rules, funders place trust in the people and groups closest to the issues. This approach values relationships, flexibility, and respect, empowering communities to decide how best to use the resources they receive.
Why does this matter?
Grassroots organizations often work with marginalized communities that face systemic barriers such as poverty, discrimination, and lack of access to services. When funders trust these organizations and provide flexible support, the organizations can innovate and adapt programs based on real-time community feedback. This leads to more effective and sustainable change.
How does it work?
- Simplified application processes: Smaller organizations often lack the staff or technical expertise to navigate complicated grant applications. Trust-based funders reduce paperwork and streamline requirements to make funding accessible.
- Unrestricted funding: Giving unrestricted or general operating support means organizations can allocate resources where they’re most needed, whether that’s staff salaries, training, or program adjustments.
- Long-term relationships: Funders commit to multi-year funding cycles, building stability and reducing the stress of constant fundraising.
Real-world impact:
In communities where trust-based funding has been implemented, organizations report greater morale, increased innovation, and stronger community outcomes. For example, a local health initiative supported by flexible funds was able to rapidly pivot to provide COVID-19 education and resources, something rigid grants might have prohibited.
By building partnerships grounded in trust, philanthropy can become a catalyst for authentic, community-led transformation.
