Trust-Based Philanthropy

A more equitable donor-grantee partnership model 

There has been a growing trend for institutional funders, like foundations: a shift towards what is called trust-based philanthropy. It’s all about developing more equitable relationships with nonprofits, trusting them to be the experts in how to fulfill their work and eliminating burdensome applications and reporting hoops.

Giving as individuals doesn’t usually include the paperwork and processes of a big funder. However, there are some basic tenets of trust-based philanthropy that apply to individuals giving any amount.

• For instance, a nonprofit would almost always prefer an unrestricted gift—giving it flexibility to use it for its greatest needs and priority impact areas (scroll below for more information). That’s instead of designating it for a very specific purpose.
• Instead of expecting nonprofits to prove to you why they’re worth investing in, be proactive about seeking out those agencies that are working in areas that are meaningful to you.
  To help with this, we offer LIVEGIVEmidsouth, a free community information where you can search nonprofits by impact area, geography, and demographic leadership.
• Offer support beyond the check through voluntarism, advocacy, or making introductions to other potential donors.

Supporting greatest needs and priority impact areas

We know that our region’s nonprofits are on the frontlines of change—meeting urgent needs, strengthening communities, and sustaining hope through particularly uncertain times. 

Recent data collected by the Community Foundation and the Center for Effective Philanthropy demonstrates that some local nonprofits are acutely feeling the strain of funding cuts, freezes, and policy shifts that force reductions in services. Others are bracing for what’s ahead—anticipating more funding reductions from both government and philanthropy.

Flexible, general operating support remains many nonprofits’ most critical need, helping organizations sustain services, retain staff, and adapt to shifting conditions.

How we are responding

Through the FOREVER Funds, the Community Foundation awarded $982,000 in Responsive Grants in December 2025 to 46 nonprofit organizations working at the forefront of community need across our region.

Responsive Grants represent a new approach to meeting the moment. Unlike traditional capacity-building grants, these awards provide unrestricted general operating support—giving nonprofit leaders the flexibility to use funds where they’re needed most to serve their communities.

How you can respond

Especially in challenging times like our neighbors and the nonprofit sector are experiencing, individual donors can embody trust-based philanthropy by offering unrestricted gifts—placing confidence in nonprofits’ expertise to respond where needs are greatest, not just where they’re easiest to measure. This kind of trust fuels resilience, empowering organizations to adapt, sustain their teams, and meet their communities with flexibility, dignity, and lasting impact.