By Diana Aviv, Independent Sector

The commentary below appeared in Exponent Philanthropy’s recent publication Outsized Impact, a report on philanthropy with few or no staff and the trends shaping its impact.

Reading up on philanthropy, I recently was reminded that the ancient Greeks so often got many things right. “To give away money,” said Aristotle, “is an easy matter and in any man’s power. But to decide to whom to give it and how large and when, and for what purpose and how, is neither in every man’s power nor an easy matter.”

Philanthropy, done effectively, is hard work, with quite a due diligence checklist. As donors consider in what arena they want to see needle-moving change, top of mind is likely to be the vehicles—most often, the nonprofit grantees—through which they do their work. It is through these organizations that many funders are able to realize their goals and, in some cases, accomplish even more than they had hoped.

Bringing different resources to the relationship

Donors potentially bring to the table a lot more than financial resources. Donors have the potential advantage of a broad understanding of a given field, knowledge of the various groups working on particular sets of issues, and of the different approaches they use. The most experienced donors have shared that some of the best ways to learn about the work in a given field is to connect directly with the people working on the ground: the doers.

Donors and doers alike inhabit the same broad environment. Doers typically toil in the trenches and that brings them close to the issues, needs, and realities of the challenge they are trying to meet. Donors have perspective, gained from talking to many people and seeing the problem and what needs to be done from many angles. Doers often have the community networks, the experience with what works, and the ability to collaborate in partnership with others. Each brings to the relationship a set of distinctive assets and potential skills that can only make an active partnership between them more powerful. This interdependence is the heart of highly effective work with a combination of vision, perspective, grit experience, and shared passion that brings the parties together even before any formal relationship has been affirmed.

On hearing my analysis, one of my funder colleagues expressed concern about being waylaid by grantseeking organizations. He worried that too much time would be soaked up with “wannabe” grantees pressing their case—followed by a whirlwind of cards, meeting requests, and communications all designed to get funding. He pointed out the high volume of competing requests that results in many more askers than givers and recalled numerous occasions in which he had been approached “practically on the street,” which made it very difficult to look forward to communing with potential grantees.

I observed to him that if funders make clear at these early stages that they have come to learn and engage with others in the community and participate with potential grantees in discussions about the issues, the relationships have a very good chance of being productive for everyone. The donor community would do well to be clear about what they are seeking and foster a mutual learning environment. They may discover that many doers welcome their thoughts, their wisdom, and their willingness to help with connections to others, and that grantees can add great value to their own philanthropic experience.

Suggesting guidelines for working well together

A while back Independent Sector convened a group of funders and nonprofits to ponder how they could best build value together. The short list of guidelines developed together included the following:

• Funders should opt for general operating support over project support “when feasible and when the goals of the two organizations are substantially aligned”;
• Funders should pay the fair proportion of administrative and fundraising costs;
• Nonprofit organizations should engage in “top-notch performance in strategic planning, financial management, evaluation, development, and ultimate impact.”

These guidelines still have considerable merit, but they do not necessarily speak to the many directions giving has taken over the past few years. Many donors have strong desires to be actively engaged in the work. As a result, partnerships are changing, and so is the way we see ourselves as donors. If we abide by the ground rules of seeing our partners for who they are and acting with respect, our work together can become not just more harmonious but more effective for the people and communities we serve.

Diana Aviv is president and CEO of Independent Sector, a meeting ground for the leaders of America’s charitable and philanthropic sector. Since its founding in 1980, Independent Sector has sponsored ground-breaking research, fought for public policies that support a dynamic, independent sector, and created unparalleled resources so staff, boards, and volunteers can improve their organizations and better serve their communities. See more at independentsector.org.