What is Power Sharing in Philanthropy?
Philanthropy, at its core, is a powerful tool for making positive changes in society. Giving is deeply rooted in the desire to address social issues and create a better world. However, the traditional philanthropic model has often been criticized for its top-down approach, where donors hold most of the power and decision-making, leaving beneficiaries and organizations on the receiving end. In recent years, a shift towards power sharing in philanthropy has emerged to address this imbalance. Here, we explore the concept of power-sharing in philanthropy, its origins, and the organizations that have embraced it.
Defining Power Sharing in Philanthropy
Power sharing in philanthropy, also known as trust-based philanthropy, is a concept that seeks to reconfigure the traditional donor-grantee relationship. It challenges the conventional model of grantmaking, where donors typically dictate how funds are used. Instead, it places trust and decision-making power in the hands of the organizations working directly on the ground to address social issues. Power sharing is about fostering collaboration, transparency, and partnership between donors and the organizations they support.
The Origins of Power Sharing or Trust-Based Philanthropy
The concept of power sharing in philanthropy has gained momentum in recent years, but its origins can be traced back to a desire for a more equitable and practical approach to giving.
The Whitman Institute, based in the United States, is one of the pioneers in promoting trust-based philanthropy. In 2008, they introduced the idea of "trust-based grantmaking," emphasizing the importance of collaboration, learning, and sharing power with grantee partners. This concept focuses on developing relationships built on trust and transparency.
In 2018, the Whitman Institute, in collaboration with a group of philanthropic leaders, released a set of six trust-based philanthropy principles that led to a wider emergence of this trend. These principles include providing multi-year, unrestricted funding, soliciting, and acting on feedback from grantees. It also allowed for simplifying and streamlining application and reporting processes and reducing the power dynamics between donors and grantees. These principles lay the foundation for a more equitable and trusting philanthropic ecosystem.
Organizations Adopting Trust-Based Philanthropy
As the concept of trust-based philanthropy gained recognition, several organizations have embraced this approach to reconfigure the dynamics of giving, demonstrating that power-sharing can lead to a more meaningful and sustainable impact. Here are a few notable examples:
Maverick Collective, an innovative philanthropic model that empowers women to invest in global women's health, has embraced trust-based philanthropy. Their approach is built on the understanding that local organizations have the knowledge, expertise, and context to create effective solutions. They provide unrestricted funding, build strong partnerships, and prioritize the voices and experiences of the communities they aim to support.
The Ford Foundation, one of the world's largest and most influential philanthropic organizations, has taken significant steps towards trust-based philanthropy. Under the leadership of Darren Walker, the foundation has committed to providing more unrestricted funding to grantees, reducing bureaucracy, and being responsive to the needs and feedback of its partners. Their efforts reflect a willingness to relinquish control and trust the organizations they support to make the best decisions for their communities.
The William and Flora Hewlett Foundation has also joined the trust-based philanthropy movement. They have committed to providing more multi-year, unrestricted grants to their partners and actively engaging in open and transparent communication. Their efforts aim to build stronger, more equitable partnerships with grantees and achieve greater impact through collaborative decision-making.
Bridgespan Group, a nonprofit organization advising philanthropists and other nonprofits, has been pivotal in promoting trust-based philanthropy. They have published extensive research and resources on the subject, encouraging philanthropic organizations to adopt trust-based principles in their grantmaking processes.
Power sharing in philanthropy is transformative in rebalancing the traditional donor-grantee relationship. This approach fosters collaboration and recognizes the expertise and knowledge of organizations working directly to address social issues. Shifting towards trust-based philanthropy is not just a buzzword; it's a tangible and impactful change in the world of philanthropy. By sharing power and resources more equitably, philanthropic organizations can build meaningful and sustainable change in communities worldwide. In the pursuit of a better world, power can be more effectively wielded when shared.