Philanthropy is transforming—and it’s happening right before our eyes. While traditional models of giving were often defined by donors dictating where money should go, newer approaches like participatory grantmaking, giving circles, trust-based philanthropy, and community foundations are turning that notion on its head.
These emerging models all share a common thread: they’re placing power back where it belongs—into the hands of the communities that need it most. Rather than just acting as recipients, those most affected by social issues are now being invited to take an active role in solving them.
Participatory Grant making: Empowering Communities to Decide
Participatory grant making flips traditional philanthropy on its head by putting communities at the decision-making table. The model allows communities, especially those who are most affected by social issues, to play a direct role in determining how philanthropic funds are allocated.
This model operates on a 50/50 approach, where funders and community representatives equally share decision-making power and financial contributions. This balance ensures that grants address the real needs of the community, guided by those who understand these needs best.
For example, in Kenya, the Kenya Community Development Foundation (KCDF) utilizes this model by ensuring that the people most impacted by the issues they seek to address—whether it’s rural education, health, or clean water—are also the ones making decisions on how funds are spent. This participatory approach allows for greater community ownership of solutions, making them more sustainable in the long run.
Giving Circles: Bringing More People into the Giving Conversation
Giving circles democratize philanthropy by inviting individuals—regardless of their wealth—to come together, pool their resources, and decide collectively where the funds should go. Unlike traditional models where only wealthy donors make the decisions, giving circles allow a broader group of people to actively participate in philanthropy, often from a shared background or interest.
This model isn’t just about pooling money; it’s about community engagement and collective decision-making. Members of giving circles meet to discuss local challenges, learn about the causes they care about, and collectively choose which projects or organizations will receive funding. It helps cultivate a deeper sense of responsibility and connection among the donors as they work together to make a difference.
An example of this in action is The Action Africa Giving Circle, which is a group of compassionate, like-minded women who engage in collective and intentional philanthropy and grant making to fund community development projects on the African continent that serve vulnerable women, children and families.
Trust-Based Philanthropy: Focusing on Relationships, Not Red Tape
Trust-based philanthropy challenges the conventional donor-grantee relationship, which is often defined by extensive reporting requirements, complicated metrics, and strict guidelines. Instead, it focuses on building trust between the donor and grantee, reducing bureaucracy, and offering long-term, unrestricted funding.
In this model, funders provide flexible, multi-year grants without specifying how the funds should be spent, allowing grantees to use the resources in ways that best suit their mission and community needs. This model encourages funders to see themselves as partners, not just donors, and emphasizes mutual respect and long-term collaboration rather than one-off transactions.
For instance, the Mott Foundation’s Africa Program practices trust-based philanthropy by providing unrestricted funding to local African organizations. This flexibility allows them to focus on solving the issues that matter most to their communities, without having to jump through excessive administrative hoops. This approach helps create a more sustainable impact by giving organizations the resources and freedom to be innovative and adaptive.
Community Foundations: Giving Back to Local Communities
Community foundations focus on a specific geographic area or group of people and act as local hubs for philanthropic activities. They are typically set up to pool contributions from local individuals, families, or corporations, and then direct those funds to projects that align with local needs and priorities. Community foundations are inherently place-based, meaning they are deeply embedded in the communities they serve.
A significant feature of community foundations is their local knowledge and the way they connect people within the community. They leverage their deep understanding of local issues to ensure that funding is directed where it will have the greatest impact, and they often act as conveners, bringing together stakeholders from various sectors to tackle complex social challenges.
For example, the Ubuntu Foundation in South Africa operates as a community foundation with a focus on creating sustainable change in the Cape Flats. They partner with local residents to tackle issues such as youth unemployment, health disparities, and education challenges, making sure that the solutions they implement reflect the community’s priorities and needs.
Common Principles Across These Models
Despite their different structures and focuses, these models all operate on a few key principles:
Power-sharing: These approaches recognize that communities are the experts on their own challenges and should be the ones driving the solutions.
Building trust: Moving away from micromanagement and toward a more supportive, partnership-driven approach.
Inclusive decision-making: Whether through participatory processes or collective giving, these models encourage a broader range of people to have a voice in the philanthropic process.
Long-term impact: These models are focused on creating sustainable, community-led change, rather than short-term fixes.
What Does This Mean for the Future of Philanthropy?
As more organizations and individuals embrace these new models, the future of philanthropy looks more inclusive, collaborative, and community-centered. The old way of doing things—where a few wealthy donors make decisions for the masses—no longer seems acceptable or effective. Instead, we’re seeing a rise in philanthropy that prioritizes local knowledge, equity, and shared responsibility.
These models represent a shift toward a more democratic, equitable, and community-led approach to giving, one that is not only about distributing funds but also about changing the very systems that perpetuate inequality. As we move forward, these principles will guide how philanthropy adapts to the challenges of a rapidly changing world.
