TRUST-BASED PHILANTHROPY

A new approach to giving

From funding projects to enabling systemic change

Today, it is difficult to speak about impact without speaking about systems. Many of today’s challenges are complex and interdependent: addressing them requires partnerships, continuous learning and the ability to adapt. This is highlighted by analyses from the Bridgespan Group, Stanford Social Innovation Review (PACS) and the MITx/u-lab ecosystem, which all emphasize the importance of tackling root causes and supporting coordinated ecosystems of diverse actors.

In this perspective, philanthropy, too, needs to rethink its practices, in order to better support the journeys of social organizations toward meaningful change. In some cases, models designed for more linear contexts are still in use: restricted funding, short timelines, heavy reporting requirements and unbalanced relationships. These create systemic frictions that can drain valuable energy. The opportunity is to turn them into levers: greater continuity, more autonomy, stronger dialogue and practices that reinforce the mission.

Trust-based philanthropy emerges from here

This approach recognizes that the quality of impact also depends on the quality of the relationship between those who fund and those who work on the ground. A philanthropy truly oriented toward complex change cannot be limited to distributing funds, but must reflect on how it influences systems, builds connections, learns and remains accountable.

The Trust-Based Philanthropy Project, a US-based initiative that studies and promotes more equitable grantmaking practices, sees this approach not only as a different way of funding, but as a broader cultural shift. At its core is a change in paradigm, moving from a donor-centered approach to one grounded in community and shared responsibility.

What is trust-based philanthropy?

It is a philanthropic approach grounded in a structural reality: there is almost always a power imbalance between those who provide funding and those who receive it*. The point is not to deny it, but to acknowledge it and work intentionally to reduce it. The Trust-Based Philanthropy Project, the leading international reference on this approach, emphasizes that while innovating practices is important, such innovation must be rooted in a deeper shift that affects values, culture, structures and leadership. The goal is not simply to ease the burden on nonprofits, but to build a form of philanthropy capable of collaborating with a shared sense of responsibility toward society.

Click Here to see the CEP report Relationships Matter

WHY TRUST?

As we explored in our article, in the philanthropic sector trust is not a vague sentiment, but an organizational choice.

It takes shape in processes that do not treat organizations as implementers to be controlled, but as knowledgeable actors, essential for understanding reality and developing effective responses to complex challenges. Trust is the foundation for developing practices that strengthen transparency, coherence and accountability, while nurturing relationships that are open to dialogue and oriented toward shared growth.

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the key practices

In the work of the Trust-Based Philanthropy Project, these values take form through a set of key practices:

systemic equity, to avoid perpetuating or creating inequalities;
power-sharing with organizations and communities;
the centrality of relationships as the infrastructure for change;
a partnership mindset, where the donor acts as an ally rather than a controller;
accountability toward the people ultimately served by the funding;
continuous learning as an intentional discipline.

Wisedāna Foundation sees trust-based philanthropy as a more responsible way of engaging in the philanthropic relationship

It means providing flexible resources, to support those working on the ground in adapting to changing priorities.

It means working with longer time horizons, because meaningful change requires time that rarely aligns with traditional annual project cycles.

It means simplifying without oversimplifying: offering what is truly needed, using time well and avoiding control-driven approaches that place an invisible burden on social work.

It means cultivating relationships beyond transactions, by offering listening, accompaniment, communication and learning.

It means listening to feedback and learning from it, treating the perspectives of organizations and communities as essential to the quality of interventions.

Shaping the conditions for change

The shift toward trust-based philanthropy represents a significant cultural and operational change.

It moves from a logic of simple funding to one of support, recognizing that resources are not only financial, but also include listening, expertise, time and connections. By moving beyond the fragmentation of isolated projects, it becomes possible to see reality as a set of interconnected processes, where change happens through continuity, patience and the ability to learn along the way. In this perspective, social organizations are seen as partners with whom to share goals and decisions. Accountability also evolves into a form of mutual responsibility, grounded in transparency. This approach helps reduce the imbalance between those who fund and those who receive, through listening, equity and recognition of the knowledge and experience that organizations bring within their contexts.

Trust thus becomes a concrete practice: entrusting decision-making space to those with proximity and expertise, making philanthropy more just and effective.