Read Part One of “Trust-Based Philanthropy Includes Trust-Based Fundraising.”

As co-founder, program director, and lead fundraiser of a nonprofit organization, I became fascinated by the level of trust between nonprofits, foundations, and beneficiaries. Why don’t many nonprofits trust beneficiaries more or at least enough to listen to them? Why don’t many foundations trust nonprofits more, and vice versa? What could all parties do to build and deepen trust with each other? How is this lack of trust limiting philanthropic impact?

These questions led me to earn an M.A. in Philanthropic Studies at Indiana University’s Lilly Family School of Philanthropy where, as my part of my degree, I conducted research on trust-based philanthropy. In my research, I noticed that most articles written about trust-based philanthropy are written by funders for funders. This makes sense given that research shows that funders are most likely to change their behavior based on other funders and that funders have a central role to play in addressing the inherent power imbalance between funders and nonprofits.

However, this is concerning because a conversation exclusively among funders does not reflect the tripartite nature of a funding relationship (funder, nonprofit, and beneficiary), it is an incomplete funder-influence strategy, and it perpetuates the false notion that nonprofits are passive, less powerful recipients.

In my work, I don’t expect unconditional trust from funders – nor does the trust-based philanthropy movement advocate for this. The movement recognizes that not all nonprofits are the same and that they vary in effectiveness, but it rightfully also challenges funders to try to trust more.

At its best, trust-based philanthropy challenges both funders and nonprofits to view each other as members of the same team. It honors that nonprofits and funders can both do things that build, damage, and deepen trust. It envisions a world where high-trust partnerships between funders and nonprofits achieve greater philanthropic impact.

High impact partnerships

I don’t believe that we need to be best friends with all our funders. In fact, if we were, we would likely have less time for our work and defocus from the most important relationships in our work – the people and communities we’re striving to impact – and therefore reduce our impact. However, we can build high trust relationships that lay the foundation for high impact partnerships. There are 10 ways I’ve found, through my research and personal experience, that can build and deepen trust with funders.

Here are the final five:

6. Communicate about things other than asking for money.

It’s hard to have a relationship and build trust if you don’t talk. Find opportunities to communicate with funders, especially if it’s not asking for money. This could take the form of a monthly or quarterly newsletter, a random text or email with a picture of your work, an invitation to one of your organization’s events, a midyear or annual report, an annual coffee meeting, and more. An important caveat is that not every organization has the staff capacity to communicate frequently and managing several funder relationships takes up time that could otherwise be spent on programming. Communication helps build trust but it’s not more important than your mission. If you foresee your organization as not having much capacity to dedicate to relationships with funders, set that expectation up front.

7. Ask for help beyond the dollar.

In my interviews, foundation staff universally shared that they don’t want the “ATM Treatment” and that they want to provide value beyond the dollar. Funders typically see things from an ecosystem vantage point, have connections to other funders and organizations, and have Board experience. Look for opportunities to ask for strategic advice and warm introductions. However, it’s important to note that, while funders want to provide value beyond the dollar, this desire is not always aligned with their abilities. Indeed, one of my foundation interviewees stated: “The funder is the expert in just giving the money away. They’re not the expert in what you do. And they shouldn’t have that control as far as being the expert because they’re not.” Recognize and act on authentic opportunities to learn from and partner with funders that don’t include asking for money.

8. Disagree, or say “No.”

It can be scary to disagree with a funder because we’re afraid if we do so that we’ll lose funding. However, I’ve found that constructive disagreement is a powerful tool for trust building. It honors the humanity of the funder, demonstrates your competence, and brings you into partnership. When my co-founder and I were first starting our nonprofit organization, a funder offered to pay for a massive public event where we were to announce our new fiscal sponsorship. It was going to come with big bucks and lots of planning support. We ultimately turned down this offer because it was going to take us away from our programming, which was particularly important to us as a new initiative. The funder appreciated our candor, respected our decision, said it was evidence of our leadership and discernment, and invited us to request future funding.

9. Share your complementary expertise.

As nonprofits, we are experts in at least two things: 1) our work, and 2) being a grantseeker/grant recipient. Funders typically recognize our expertise in our work, but don’t always notice or benefit from our expertise as grantseekers/grant recipients. Many foundations choose to distribute their own anonymous surveys or engage with powerful tools like the Center for Effective Philanthropy’s Grantee Perception Report. Many, however, do not. If a funder asks for feedback, be ready to provide it in a constructive manner, recognizing their level of influence in their organization.

If a funder isn’t creating the space for feedback, find ways to start the conversation. Ask them to give feedback. Ask about their role. Ask what they’re learning and thinking about as it relates to the world of philanthropy. Share articles or podcasts, and I also told them I’m in graduate school doing research on trust-based philanthropy (this is probably the most expensive option). A significant disclaimer for this is that many nonprofits have been “put in their place” for giving feedback to funders and lost funding as a result. Use your emotional intelligence to know if/when they are ready and have the conversation in a way that is curious, humble, and led by listening.

10. Talk about your relationship.

Clear expectations are a hallmark of a high trust relationship. Ask the funder what they expect from you in terms of communication. Let them know honestly what you have the capacity for. Do this early on to pave the way for future opportunities for feedback.

Andrew Spector is co-founder and program director of Tulsa Changemakers, a program of Leadership Tulsa that builds capacity in youth, adults, and systems to support youth in driving positive impact in Tulsa right now and into the future. Andrew holds an M.A. in Philanthropic Studies from Indiana University’s Lilly Family School of Philanthropy and a B.A. in Psychology from the Honors College at College of Charleston.