Trust-based grantmaking: What it is, and why it’s critical to our sector

ducklingThe Walking Dead is back on TV. After last season’s finale, and this season’s opener, I am not sure I will continue watching. But zombies do make me think of funding dynamics, so that’s why I am bringing it up. In The Walking Dead, the zombies are scary, but they are the least dangerous. Zombies eat brains; they don’t have brains; they don’t have hidden motives and plans; you know exactly what a zombie will do. It’s the humans who are terrifying. Pushed into survival mode, they calculate, lie, betray, and refuse to use the Oxford Comma (#OxfordCommaForever). No one trusts anyone, and it’s more often than not that groups of humans end up killing one another before a zombie actually gets to munch on anyone’s flesh.

What does this have to do with funding dynamics? Well, there seems to be a pervasive lack of starting with trust between funders and nonprofits, and it’s affecting all of us and our abilities to survive and do our work. The default starting relationship between funders and nonprofits is one of suspicion of the latter by the former, which leads to funders enacting policies and practices designed to make nonprofits more “accountable,” such as restricted funding, individualized applications, bespoke budget forms, customized reports, and other things that drive us nonprofits nuts. This in turns leads to nonprofits’ hiding of information, especially about challenges, from funders, which in turn reinforces the suspicion. All this perpetuates a depressing cycle of waste of time and energy and lots of complaining, usually at bars, and all that could have been used to deliver programs and services.
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