Rethinking ROI: Is Trust-Based Giving the Real Power Play?

Consider this: Have grantmakers become so focused on impact metrics and evaluations that they’re missing the point entirely? What if trust-based giving replaced the constant obsession with ROI? This shift could redefine power dynamics in nonprofit fundraising, emphasizing trust and impact over control and bureaucracy.

Consider this: Have grantmakers become so focused on impact metrics and evaluations that they’re missing the point entirely? What if trust-based giving replaced the constant obsession with ROI? This shift could redefine power dynamics in nonprofit fundraising, emphasizing trust and impact over control and bureaucracy.

Key Power Plays in Nonprofit Fundraising and Philanthropy

We can use our awareness of power to cut unnecessary red tape and make real impact more accessible and equitable. Here are some examples:

For more information about power dynamics and the social study of intrinsic versus assumed power, tune into this conversation with Leti Light on Lindsay’s podcast: Creating Community for Good. … https://lindsaysimondsconsulting.com/36-leti-mcneill-light-how-to-influence-and-empower-teams/.

1. Unrestricted Giving as a Power Shift

We talked a lot about Mackenzie Scott’s recent decision to give $2.7+ billion away to 286 high-impact organizations in categories and communities that have been historically overlooked and underfunded. Scott’s choice to trust these organizations with unrestricted gifts is very different than the typical approach of a major gift donor.  Several of her chosen organizations reported that her trust increased the impact of the gift tremendously. Empowering nonprofits to “do more good work with less financial stress” may seem simple, but certainly qualifies as a power play by challenging the typical donor/organization relationship — relinquishing control from the donor to those on the frontlines.

2. Power and DEI in the Nonprofit Sector

Another complex power play becomes obvious when the conversation shifts to diversity, equity, and inclusion (DEI) within the nonprofit sector. If we as fundraising professionals are committed to allyship, we need to have conversations about who is missing from the table and how to get them there. At a time when media should result in increased exposure for *all* mission-drive organizations, how can we ensure that white-washed institutions aren’t the only ones receiving coverage? How can we expand exisiting networks to result in more inclusive relationships for BIPOC-led organizations? Cultivating an awareness about the racial power inequities that have always existed in our space is the first step. A great place to start is Becky Endicott and Jonathon McCoy’s podcast We Are For Good episode #119: “The Urgent Case for LatinX Philanthropy + Unlocking the Power of Unrestricted Giving – Ana Marie Argilagos.”

3. Donor Focus: Diversify Your Giving

Donors can often get caught up in supporting a single cause or organization religiously. As new organizations pop up, it’s important to do our due diligence by continuing to search for and promote organizations worth funding. The power to elevate good work is in the donor’s hand. Don’t get lazy… get excited!

4. Support for Early-Stage Nonprofits

For nonprofits in the early stages, Lisa Greer suggested looking into the Executive Service Corps  — a national network of organizations and professional that provide consulting, coaching, facilitation, and many other services to strengthen nonprofits. Looking into community foundation databases and Giving Days are great ideas for gaining power, too!

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