Transparency in Grantmaking Strategies

Six Ways Funders Can Embrace Transparency to Foster Stronger Relationships

Excerpt from the sgENGAGE Blog

Philanthropy has had a history of being notoriously opaque and inaccessible to organizations seeking funding. In my years as a grantseeker and nonprofit consultant, I’ve waded through dozens of ambiguous foundation websites that make it impossible to know how to get even a foot in the door to be considered for funding.

And that’s just the tip of the iceberg when it comes to our sector’s lack of transparency.

Even once a nonprofit makes it through the seemingly impenetrable barriers of accessing philanthropic dollars, they are often faced with a whole new set of challenges. Long waiting periods for grant approvals, uncertainty about grant renewals, hard-to-reach program officers, and sudden shifts in grantmaking strategy put nonprofits in a constant guessing game. Not only does this lack of transparency exacerbate the already uneven power dynamic that exists between funders and nonprofits, it also inhibits the possibility for a relationship rooted in trust and mutual accountability.

However when funders proactively model transparency, power awareness, and vulnerability, it can be transformative. By setting a tone of honesty and openness, funders create the conditions for a different type of relationship, wherein everyone’s time and contributions are valued – and more importantly, nonprofits feel safe enough to share openly about what is really happening in their organizations and in their work.

Ultimately, if we want to cultivate honest funder-grantee relationships, we must embrace and prioritize our own ability to be transparent and responsive.