WTPh is Trust-Based Philanthropy? with Jeff Golby of ACTS, Ep #55

Episode 55

With Benjamin Johnson and Jeff Golby

What is the role of trust in the fundraising process? What does sustainable accountability look like in the charitable sector? On this episode, Ben sits down with Africa Community Technical Service (ACTS) for Water CEO Jeff Golby to discuss trust-based philanthropy, unhealthy power dynamics in major giving, and better ways to build trust between charities and the donors that fund them. 

You will want to hear this episode if you are interested in...

  • Getting to know Jeff Golby and life lessons for Enneagram Threes [0:25]

  • Overhead, the expense of charity, and the unspoken parts of fundraising [6:46]

  • Understanding trust-based philanthropy [10:21]

  • Breaking down unhealthy power structures in philanthropy [15:02]

  • Creating a world without grant writing and balancing the direct and indirect costs of running a charity [17:51]

  • Building trust between charities and donors [23:20]

  • The messiness of fundraising and the power of continually showing up [27:13]

Making a holistic impact

Within fundraising, there can be an unhealthy power imbalance between organizations that receive grants and the benefactors who fund them. This is exactly what a philosophy of trust-based philanthropy is seeking to balance. Giving should be about empowering organizations to help a cause or meet a need, not an exercise of power from the wealthy. Such dynamics lead to unrealistic and overbearing reporting cycles that often cause charities to change their outcomes based on the reporting period. Jeff notes that one of the reasons water projects fail is because reporting cycles for funding on grants are traditionally only six months. He believes a trust-based philanthropic model would allow an organization three years to exact meaningful change within a community. Changing how a community measures a project leads to more successful and holistic results.

Building a better system

A major way charities get funding is through successfully writing grants. If it were up to Jeff, he would wave a magic wand and get rid of all the grant writers. Not because they aren't needed, but because the current system is ineffective, and charities shouldn’t have to spend billions of dollars writing grants when that money could go to the cause they serve. Better yet, Jeff suggests that even a fraction of that money could be used to build a better system. If the process was standardized, there would be one unified grant, allowing more funding and greater impact. Charities can also make it easier for major donors by being proactive about transparency and providing standardized impact data on their websites. 

Creating healthy and sustainable donor relationships

A common misconception about trust-based philanthropy is that it demands blind trust from its donors. Fundraisers expecting major donors to just "cut a check and walk away" need a reality check. Trust-based philanthropy really comes down to balance. It’s about partnering with your donor and walking together on a journey of generosity. Trust is a two-way street. Both charities and funders need to know how to gain each other’s trust and work hard not to break it. The healthiest relationships between donors and charities occur when both parties can set aside extreme expectations and work towards mutually agreed upon goals that make the world a better place. 

Resources & People Mentioned

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