At the Elevate Prize Foundation, trust-based philanthropy is more than a buzzword – it’s a guiding principle that informs how we fund nonprofits and partner with changemakers. This approach challenges traditional philanthropy models by redistributing power and fostering more equitable grantmaking relationships.
Trust-based philanthropy (noun): The redistribution of power to create equity and grant more decision-making autonomy to changemakers and communities regarding the use of philanthropic funds
Traditional philanthropy models often require that funds come with specific conditions or restrictions set by the grantmakers or funders. This could include anything from reporting requirements to specifications on what exactly the money is spent on. However, these behaviors can in turn impede the impact nonprofits work so hard to achieve. With trust-based philanthropy, we’re working to fundamentally reimagine the role funders can have in creating a more just and equitable society. At Elevate, our hope is that the sector as a whole moves in this direction — and below are reasons why.
First, Where Did Trust-Based Philanthropy Come From?
The roots and framework of trust-based philanthropy come from The Whitman Institute (TWI), a San Francisco-based grantmaking institution, and was inspired by grantee partners following the financial crash of 2009.
As Pia Infante, the former Co-Executive Director of The Whitman Institute said in an interview, “We had a vision for a deeply democratic, multi-racial society where all beings and communities were self-determined and well-resourced. We acknowledged that our socio-political and economic structures were intolerably inequitable, and we were highly concerned that the racial wealth gap was widening while resources and strong public infrastructure had been under attack for decades.”
These power dynamics are often most noticeable for nonprofit leaders of color, young people, and other marginalized groups who already tend to receive less trust and support from traditional philanthropic models.
By decentering funder egos and preferences in service of rebuilding a strong social fabric and addressing the moral concerns of philanthropy, we’re able to prioritize relationships and find creative ways to work with grantee partners in service of greater impact. Based on this philanthropy model, we as funders ultimately answer to the nonprofits, organizations, and communities in order to gauge overall success.
How Is Trust-Based Philanthropy Different From Traditional Grantmaking?
Common grantmaking practices typically slow down or even prevent nonprofits from doing the work they know how to do best. In an attempt to do their due diligence, grantmakers tend to create requirements and processes for the nonprofits that are unintentionally burdensome and restrictive. In turn, it perpetuates an already uneven power dynamic between the funders and nonprofits while also diverting the nonprofits away from their mission and instead towards satisfying the funders expectations.
Trust-based philanthropy invites funders to reimagine the power dynamics and structural barriers so we can focus on supporting and uplifting nonprofits rather than controlling and monitoring them. How do we go about implementing an equitable grantmaking process? With a set of six grantmaking practices that are core to the trust-based philanthropy model:
- Give multi-year, unrestricted funding: This is funding that isn’t tied to specific programs or deliverables. It gives grantees the freedom to direct resources where they’re most needed, whether it’s staff salaries, operations, or unexpected challenges. It fosters innovation, responsiveness, and long-term sustainability.
- Do the homework: Instead of making nonprofits jump through hoops just to submit a proposal, the responsibility is on the funders to educate themselves on potential grantees.
- Simplify and streamline paperwork: Instead of countless reports, focus on dialogue and learning that can lead to deeper relationships and mutual accountability.
- Be transparent and responsive: Relationships rooted in trust and vulnerability help signal to the grantees that they can show up more fully.
- Solicit and act on feedback: Having open and honest dialogue means being open to the valuable perspectives nonprofits and communities can provide to help inform various strategies and approaches.
- Offer support beyond the check: Non-monetary support can make a world of difference supporting leadership, capacity, and organizational health. This can be especially important for organizations that historically haven’t had the same insider access to networks.
These six practices help make trust-based philanthropy a more effective model by giving nonprofits more time, space, and support to innovate and respond to the needs of their communities.
How The Elevate Prize Foundation Embodies Trust-Based Philanthropy?
At the Elevate Prize Foundation, we take trust-based philanthropy to heart, ensuring that all of our funding across our awards is unrestricted, trusting our grantee partners to know best where and how to allocate the funds with more simple reporting structures in place.
Daniel Stein-Sayles, Elevate Prize Foundation’s Program Manager for GET LOUD & CNN Heroes, notes the importance of this philanthropic method specifically around the GET LOUD Award, “The program has been intentionally created to have an accessible application process, a focus on unrestricted funding, reducing the time it takes to make decisions and distribute funds, and a less arduous reporting process. Together this program creates a breath of fresh air for leaders of organizations who can focus more of their energy on their impact and less on grant applications and reporting.”
Through our five core programs, Elevate Prize Foundation believes we can be more strategic, rewarding, and impactful funders when we approach the relationships with our grantee partners from a place of trust and collaboration.
OUR CORE PROGRAMS
Alex Rosales, Senior Program Manager at Elevate Prize Foundation who runs the application process of our signature award, Elevate Prize also weighed in, “The flexibility [of the customizability of the Elevate Prize] is crucial because it acknowledges that no two organizations are alike, and each face unique challenges and opportunities that require tailored, nimble responses.”
But to ensure lasting impact and meet our mission, we do more than just fund nonprofits. We are committed to bringing visibility to the work of changemakers, helping scale their impact and stories, and inspiring action on a global scale.
The Elevate Prize, for instance, is an example of our mission coming to life and is designed to help shift culture to create a world where more people are inspired to take action. In addition to funds, the Prize includes a robust, tailored 2-year program created to elevate winners’ platform, storytelling skills, and organizational effectiveness through support in three core areas: organizational growth, visibility, and whole leader.
Trust-based philanthropy isn’t just about how we fund organizations; it’s about building real relationships rooted in respect and collaboration to unlock greater impact for all. By providing unrestricted funding, co-creating with our grantee partners, opening communication, and creating programming built to their needs, we’re proud to be on our way to Make Good Famous—together.
