Earning Trust in Crisis
A Message from CEO, Kathryn O'Neal-Dunham
In recent years, the philanthropic sector has put a great deal of energy into shifting practice toward a more relational approach, as evidenced by movements such as trust-based philanthropy. Much of the sector conversation about ‘trust’ has focused on foundation practices that demonstrate the grantmaker’s trust in nonprofit partners to plan and implement their work and spend grant dollars with care. Overall, I hear less conversation about foundation practices that earn the trust of nonprofit partners.
In a moment when the nonprofit sector is experiencing existential threats from federal government action including funding freezes, investigations into practices designed to increase diversity and remedy historical inequities, and attempts to sow mistrust with the establishment of hotlines to report ‘suspicious' practices, I believe the question worth asking is: What accountability do philanthropic institutions hold to be credible, reliable, trustworthy partners to their nonprofit partners on the front lines of these threats?
Rapid changes at the federal level are putting nonprofits and the communities they serve in positions of taking on great risks and making untenable choices. Foundations know how to make big changes quickly to meet unprecedented needs. However, Executive Orders demanding investigations of large philanthropic foundations have shaken courage and caused grantees to question philanthropy’s commitment to allyship.
Trust is not built, it is earned. To be trusted, one must consistently behave in trustworthy ways.
The question repeatedly asked in the sector is “What is philanthropy’s role right now?” While it is widely understood that philanthropy cannot possibly fill the deficits created by the withdrawal of federal grants, the nonprofit sector is telling philanthropy what it needs. In recent research from The Center for Effective Philanthropy, the overwhelming majority of nonprofit leaders say the current political climate is negatively affecting their organizations. They have two asks of their foundation partners right now:
- More and clearer communication. Nonprofit leaders are seeking dialogue with their foundation partners about the implications of the political context, but indicate that most of their funders have yet to communicate with them.
- Unrestricted support. Worries about current and future funding levels, and changing funder priorities, are top of mind for nonprofit leaders. They want assurance that their funding partners are their allies, and one way to signal this is with larger and more unrestricted support in this uncertain time.
In other words, grantees are asking foundations to take action in the face of fear. They are asking to be in close communication. They are asking for allyship. They want you to show them they can trust you to walk this uncertain path alongside them. Within Philanthropy New York’s networks and working groups, grantmakers are sharing strategies with each other. Here are some of the ways that foundations can demonstrate trustworthiness in this moment:
Internally:
- Talk with your trustees about the ways that the current environment differs from previous changes in the federal administration and what that shift requires of them as stewards of funds that are meant to serve a mission.
- Adjust your grantmaking strategies to creatively address new risks. I have heard from members who are redefining capacity building to support physical and cyber security, legal advice, and internal audits of systems, policies, and insurance. At least one funder has offered to strategically fund lawsuits against federal actions that may be illegal or unconstitutional.
- Consider what this moment requires of your spending policies. In a moment when the environment threatens your ability to achieve your mission and the societal gains you have invested in for years, how do you recalibrate your spending policy to center your foundation’s purpose?
- Get the guidance you need to take informed action. I am grateful to Lawyers Alliance for New York for supporting PNY and our members in navigating risk with courage.
- Recognize the enormous burden that has been placed on coordinating institutions like the National Council of Nonprofits, United Philanthropy Forum, Independent Sector, and the many legal services organizations that are serving as the nerve centers for responsive education and resistance against unlawful overreach.
Externally:
- Connect with your grantees and connect your grantees to each other. Listen to how the current political context is affecting their work.
- Amend your grant application, reporting requirements, and grant agreement letters to allow for maximum flexibility and minimum time commitment from grantees. Nonprofit legal experts say that now is the time to rid your grant agreements of indemnity clauses that unfairly place the risk on grantees.
- Communicate publicly. Tell your peers and your grantees that efforts to engender diversity, foster inclusive decision-making, and rectify systems that produce harmful and inequitable outcomes are not illegal. Rather, they are core to the criteria defining our charitable status. If you need models to share with your board, consider how the Public Welfare Foundation, Rockefeller Brothers Fund, and Robert Wood Johnson Foundation have spoken publicly about their commitments to equity, inclusion, and democracy.
- Support each other. I feel deeply grateful for the opportunities I’ve had recently to hear PNY members discuss the ways that they are showing up for each other and your grantees. I hear you urging one another to stay the course and double down on the commitments you have made, and I respect the ways that each of you must respond differently in this moment.
Legacy will be defined by the impact of our action or inaction.
Foundations are accustomed to equating their power with money. But the currency of this moment is allyship. It is the acknowledgement through action that the purpose of philanthropic institutions is not to self-protect, but to equip. Philanthropy’s legacy should not be a story about the survival of endowments in turbulent markets. The author and poet Clarissa Pinkola Estes wrote, “It is not given to us to know which acts or by whom, will cause the critical mass to tip toward an enduring good. What is needed for dramatic change is an accumulation of acts – adding, adding to, adding more, continuing.” Legacy will be defined by the impact of our actions. It will be measured by how well nonprofits thrive and the strength of communities to mobilize with clarity and courage.
Legacy will be defined by the impact of our actions. It will be measured by how well nonprofits thrive and the strength of communities to mobilize with clarity and courage.
If you are interested in how to equip yourself and your institution, I encourage you to connect with Philanthropy New York this Spring:
Trustee Salon on April 3rd:
- CEOs, bring your Trustees to hear how a peer foundation navigated a similarly challenging moment in 2017. To RSVP please email Amy Chen at achen@philanthropynewyork.org
Annual Meeting: Philanthropy For Our Time on May 15th:
- Join us for a half-day of learning in service to action. You will hear from talented thinkers and strategists who will help us make sense of how philanthropy needs to evolve our practices to meet this moment. Prepare to connect deeply with your sector colleagues through peer exchanges, inspirational PhilTalks, and skill-building workshops.
Resources:
- If you are struggling with information overwhelm and trying to stay abreast of what is happening and the impacts on nonprofits, please visit our resource page, where we are posting research, thought-partnership, and programs that will help foundations build the analysis needed to make decisions that increase trust with grantees.
Build Community:
- If you are not already part of a peer network or a community of practice at PNY, now is definitely the time to build community. Contact our member engagement team to set up a discussion about how you and your colleagues can get involved at Philanthropy New York.
And always, please be in touch to let me know how we can support you and share work that is creatively addressing the needs of a rapidly changing environment.
In partnership,
Kathryn
