Trust is one of the most essential elements of effective grantmaking. It’s also one of the hardest to practice fully. After more than 30 years in youth development and philanthropy, including 25 at the Charles Hayden Foundation (CHF), I’ve come to believe that to have a meaningful impact with our grantees, trust has to show up in how we work—how we listen, fund, and maintain relationships.
At CHF, we’re still in the process of adopting a trust-based philanthropy model, but it’s the direction I hope we’re moving in. But it’s where I hope we’re headed. Here I’ll share what that shift could look like, why it matters now more than ever, and what I’ve learned (and am still learning) along the way.
Why trust, and why now?
Nonprofits and the communities they serve are experiencing new and dynamic challenges. Between the pandemic, the fight for racial justice, uncertainty around federal policies, and widespread burnout, organizations are being asked to do more with less, while also being told to prove their worth at every turn.
At the same time, funders have mandates to meet, while we also need to show that we’re listening, evolving, and backing up our values with real action, beyond writing a check. Nonprofit leaders need to know their funders will support them for the long haul, trusting them to know how best to allocate resources. However, traditional grantmaking—characterized by lengthy application forms and processes, short-term grants, and strict requirements for deliverables—often makes it harder to demonstrate those values, and adds up to a system that doesn’t leave much room for trust.
CHF supports youth-serving nonprofits in New York and Boston. If we really want to support these organizations doing critical and complicated work, we have to make sure our traditional processes aren’t getting in the way. Trust is essential to doing this work well.
Building trust when you hold the power
Let’s be real: Foundations hold a lot of power. We have the money, the influence, and the ability to shape what gets prioritized. Nonprofits feel that power imbalance, whether we name it or not.
That’s why building trust means shifting how we show up in the relationship. It’s about how we listen, how we follow up, and how we share responsibility for the implementation and outcomes of the work we support.
At CHF, we’re exploring how to strengthen trust and partnership with our grantees:
- Multiyear funding: Support organizations over a longer period, so they can focus on priorities with more stability.
- General operating support: Provide more flexible funding that allows nonprofits to invest in what they know is most needed, instead of tying dollars strictly to projects.
- Streamlined reporting: Move toward reporting that sparks dialogue and reflection, rather than a compliance exercise.
- Listening before planning: Consider nonprofits stakeholders in funders’ vision and direction and hold listening sessions as part of strategic processes.
Even small shifts in how we show up can lead to stronger, more honest relationships. We initially funded a few grantees with tightly scoped, project-based support and extensive oversight. But over time, as we observed the strength of their leadership and the consistency of their impact, we started having more open conversations, not just about outcomes, but about challenges, aspirations, and what real partnership could look like. In turn, we shifted toward a more flexible, trust-based approach. The result? They had more room to grow, and we had a more collaborative and transparent partnership. Everyone benefited.
Trust takes practice
Trust isn’t a one-time decision. It takes conscious, continuous, day-to-day work in the ways you interact, communicate, and make decisions. Trust has to be baked into how a foundation operates—from the boardroom to the grant portal. Here are some of the ways we practice building a trust-based community at CHF:
- Being consistent and transparent, especially when we have to say “no.”
- Creating a culture of humility, where we’re open to learning and feedback.
- Having staff and board members who reflect the communities we serve, not just on paper, but in perspective and lived experience.
A few ’dos’ and ‘don’ts’
Here are a few lessons we’ve learned so far about being better partners:
Do:
- Be clear about what you fund and why.
- Build relationships, not transactions.
- Make time to reflect with partners, not just evaluate them.
Don’t:
- Confuse trust with a lack of accountability.
- Think building trust ends when the grant is disbursed.
- Expect nonprofits to take all the risks while funders play it safe.
The long game
Trust-based philanthropy takes time, humility, and a willingness to let go of some control. As the saying goes, “Trust arrives on foot, but leaves on horseback.” After 25 years at CHF, I’ve seen how slowly trust is built—and how fast it can vanish if we’re not careful.
But here’s the good news: When we show up with consistency and care, trust doesn’t just stick; it grows. And when that happens, we’re not just funding better programs, we’re helping build stronger, more lasting change for young people and the organizations that serve them.
That’s the kind of philanthropy I want to be part of and hope to advance.
Photo credit: SDI Productions via Getty Images
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