Trust Based Philanthropy and Unrestricted Gifts

Has trust-based philanthropy resulted in more unrestricted support for nonprofits?

The field has been pushing for trust-based philanthropy for a long time. Trust-based philanthropy is an effort by foundations to change the way they operate in order to advance equity, shift power, and build mutually accountable relationships.

🔷 This has most often been reflected in the reduction of reporting requirements, loosening how the funds can be spent, including recognizing the need for support for indirect costs and relying on the expertise of the nonprofit to develop solutions.

🔷The Center for Effective Philanthropy (CEP) found that since the pandemic, “foundations made many changes to their practices, such as providing more unrestricted support and streamlining processes.

🔷CEP found that “Virtually all foundation leaders say their foundations are working differently now than in early 2020… and indicate that they will sustain these practices in the future.

🔷The Trust-Based Philanthropy Network articulated six practices for trust-based grantmaking including providing multiyear unrestricted support that reduces the drag on nonprofits and enables them to invest in their organizations as well as core programs.

❓Nonprofit Leaders: How have you benefited from Trust-based philanthropy from your foundation supporters?

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