Trusting Nonprofits to Lead the Way

Guest Column by Joe Heitz, Vice President of Community Impact

A recent survey from Independent Sector revealed that 57% of Americans have “high trust” in nonprofits. That number might seem unimpressive at first, but compared to the federal government (18%) or corporations (21%), trust in nonprofits is remarkably high. As our communities face challenges, we trust nonprofits to see us through.  

In recent years, more donors and funders are putting their full trust in nonprofits. Communities are relying more heavily on nonprofit organizations, and trust-based philanthropy is fueling positive outcomes.  

What is trust-based philanthropy? 

Trust-based philanthropy is just what it sounds like. Nonprofit organizations know our communities and their challenges better than anyone. They’re the best positioned to build the partnerships and construct the solutions that will allow those they serve to thrive. By trusting their expertise, experiences, and vision, funders and philanthropists can help bring about real change. 

Without real trust, funders can actually impede a nonprofit’s ability to address community issues. Gifts that don’t account for administration, fundraising, or other ‘overhead’ don’t cover the true cost of programs.  

Say, for example, a well-intentioned donor makes a gift to a food pantry, but only wants the funds to be spent on the actual food. To use the gift, the organization must pay staff to either distribute the food or oversee volunteers. They have to store the food, which means rent, insurance, and utilities costs, and the growing gap in funding means they will also need to invest in fundraising. The gift, though generous, creates barriers to achieving the mission. 

Trust-based philanthropy moves us away from this paradox. By removing constraints on funding and giving from a place of trust, we allow nonprofits to expand their capacity to serve our community.  

What does trust-based philanthropy look like? 

Trust-based philanthropy does not mean disengaged philanthropy. It doesn’t mean that we should stop asking questions or trying to understand community needs. Trust-based philanthropy merely requires a new kind of engagement from donors and funders. When we stop asking about overhead expenses and start asking about vision, we build mutual trust with our community’s nonprofits.  

As the largest funder in Linn County, the Community Foundation strives to stay on the leading edge of philanthropic best practice while remaining good stewards of your gifts to the community. By offering unrestricted grants, learning from grantees, and finding new ways to use existing resources, we’re taking steps to move our partnerships with nonprofits from transactional to relational. When donors and funders strive to meet nonprofits where they are at, our gifts become real investments in the organization and the community.