Building Trust Into Your Philanthropy: Moving from Charity to Solidarity

This past April, I Live Here I Give Here partnered with Impact Austin and Cirrus Logic to host a brilliant conversation with local leaders on the topic of trust-based philanthropy as a part of our How To Give series. Nearly 60 people attended this event to hear from Laila Scott of the Reissa Foundation, Sharon Vigil of Communities in Schools, Simone Talma Flowers of the Interfaith Action of Central Texas, and  independent consultant Michelle Flores Vryn.

These women first helped to define trust based philanthropy - the concept that funders approach their relationships with nonprofits from a place of trust and collaboration rather than compliance and control. While Michelle noted that the movement is about rethinking power dynamics between funders and grantees, Sharon stated that trust-based philanthropy is a way for nonprofits to take back their power and create human connections.

For foundations like Reissa, Laila explained that they put this into action by building relationships with their grantees and being responsive to their needs, trusting that the nonprofits know best where they need the funds. During the pandemic, they asked their nonprofit partners what they needed to survive, and then got checks out quickly to cover those needs. They created the “Reissa Relay,” where they rely on nonprofits to recommend and raise up other nonprofits in their sector. 

Nonprofits use the tenants of trust-based philanthropy to build a relationship with funders in order to create stability - which is more important than ever. Sharon pointed out that nonprofits have the boots on the ground, are in the community, doing the work; “When a funder trusts us, it allows us to be courageous on behalf of those we serve in the community.”

Building trust into your giving could mean talking openly with your nonprofit contacts, not requiring extensive grant applications or reporting, giving multi-year grants, and (perhaps most importantly) providing unrestricted funds*. The Reissa Foundation understands the importance of trusting grantees to use the funds how they need and is committed to providing unrestricted funding to its grantees. And Communities in Schools received a $7 million unsolicited, unrestricted grant from philanthropist MacKenzie Scott, which allowed them to pay their staff a living wage and to create more innovative approaches to serving the needs of kids and families in Central Texas.

Sharon made the imperative point that funders need nonprofits to achieve their missions, and nonprofits need funders to achieve theirs. This symbiotic relationship creates a perfect opportunity to build human connection and find the ways that work for both sectors - but it must be built on trust.

As Michelle noted, “We need to make the time to really care and spend time with one another. When we do that, other things fall into place.”

Again, I Live Here I Give Here is so grateful to Impact Austin for partnering with us, to Cirrus Logic for hosting us in their space, and to Tso Chinese for feeding us delicious food. 

*As a note, funds raised by I Live Here I Give Here’s programs like Amplify Austin Day and AmplifyATX.org, are always unrestricted dollars for our nonprofit members. Additionally, Impact Austin has just started making unrestricted grants to nonprofits in Central Texas.