Trust Based Philanthropy
If your goal is to foster a community where resources are used to their full potential with no bias, trust-based philanthropy is an essential tool.
What is Trust-Based Philanthropy?
Trust-based philanthropy means the funders cannot place any restrictions or obligations of how the money they are funding will be distributed.
This can include unrestricted funding, which is when the charities choose how to deal with the money.
Communities that are in need of the funding have decision-making leeway during a trust based approach which provides an even more effective use of the funding.
Racial inequality has been weaved into philanthropy throughout history and with a trust-based approach, this can be avoided.
Generally, when nonprofits receive funding or grants, there are specific conditions regarding how the money will be used. This system is not as effective because the priorities of the funders may not be consistent with the communities needs. Without trust based philanthropy, funders can impose undue burdens on nonprofits, and prioritise organisations that align with the donors' priorities; this can enable racialism and unfair bias. Trust-Based Philanthropy is the future for philanthropy as it excels progress for communities without any bias from the funders.
Learn more at: Chronicles article, Trust-based philanthropy website
