Learning Trust-Based Philanthropy: A Newcomer’s Perspective

Isabella Chambers, Communications Intern

Before I started my internship at Headwaters Foundation, I had never heard of Trust-Based Philanthropy. Like many, I thought philanthropy was simply about giving money to non-profits to help solve social issues. It seemed straightforward: foundations had funds, and nonprofits had solutions. 

But as I quickly learned, it’s not that simple. Many nonprofits spend just as much time navigating funder requirements as they do working toward their mission. Hurdles like excessive reporting, applications and restrictions are often seen as necessary safeguards. But are they really?  

Should Philanthropy be Driven by Fear or Trust? 

Conventional philanthropy often operates from a place of fear – that the wrong grants will be made, that money will be misused, that funders won’t be in control of outcomes. This fear creates rigid structures that slow nonprofits down by forcing them to spend valuable time justifying their work instead of doing it. What if philanthropy operated from a place of trust instead?  

What is Trust-Based Philanthropy? 

Trust-Based Philanthropy shifts power to the organizations and communities leading social change. Instead of burdening grantees with excessive requirements, it removes barriers so nonprofits can focus on impact, not paperwork. Trust-Based Philanthropy involves:  

• Providing flexible funding. Instead of prescribing how every dollar should be spent, funders offer general operating support, allowing nonprofits to use funds where they’re needed most. 

• Streamlining applications and reporting. Trust-Based funders reduce unnecessary paperwork, recognizing that nonprofits should spend their time serving their communities, not filling out forms. 

• Building strong relationships. Instead of acting as gatekeepers, funders become partners, offering guidance, advocacy, and long-term support beyond financial contributions. 

• Letting communities lead. The best solutions come from those closest to the challenges. Trust-Based Philanthropy acknowledges and respects the expertise of the people doing the work. 

• Investing in long-term impact. Instead of short-term, project-based funding, Trust-Based Philanthropy supports organizations for the long haul, ensuring they have the stability to create lasting change.  

Why This Matters 

Trusting the Wisdom of Communities 

Conventional philanthropy assumes funders know best. But real solutions come from those who experience challenges firsthand. If philanthropy is serious about addressing social issues, it should listen to and invest in the leadership of those most impacted. 

Redefining Impact 

Success isn’t measured by lengthy reports or arbitrary data points. In Trust-Based Philanthropy, relationships are a key measure of impact – between funders and grantees, and between grantees and the communities they serve. 

Strengthening Nonprofits for the Long Haul 

The challenges we face – environmental crises, economic inequities, social injustices – have been centuries in the making. If these problems will outlast us, then so must our solutions. Trust-Based Philanthropy helps nonprofits sustain their work for the long term, not just for the duration of a grant cycle. 

More Than a Theory – a Practice 

When I started this internship, I thought philanthropy had to be top-down, driven by rules and restrictions. But I have learned that it can be transformational – not just transactional. Trust-Based Philanthropy is a practice that can transform the future of giving. 

Non-profits are already tackling some of the world’s biggest challenges with limited resources. Philanthropy should remove obstacles, not create more. If funders choose trust over fear, they can help accelerate the change we all hope to see. 

Learn more about Trust-Based Philanthropy from the Trust-Based Philanthropy Project! 

Isabella Chambers recently graduated from the University of Montana Davidson Honors College with a bachelor’s degree in Multidisciplinary Studies. She is passionate about the environment, cultural inclusion, and social justice, and is currently training for a bikepacking adventure! Through our communications internship program, we aim to launch talented communicators like Isabella into the nonprofit sector.