Insights
Philanthropy in Focus - the Evolution of Donor-Charity Relationships
Where trust and shared vision drive greater impact
The relationship between philanthropic donors and charities has undergone a significant transformation over the past two decades, according to Kate Boswell.
- Donor–charity relationships have evolved from short-term, directive funding to long-term, collaborative investment models.
- Today’s charity donors focus on mission alignment and trust in leadership trust.
- Transparent, two-way conversations allow donors and charities to adapt strategies, foster trust and effect more impactful outcomes.
“When I first started advising clients, the donor-to-charity relationship was more transactional in nature. It resulted in the perception that giving money to an organisation gave donors license to dictate how that money might best be deployed. Sometimes, with the threat that they would withdraw that funding if they weren’t happy with the strategy,” she told guests at our Stonehage Fleming Philanthropy Conference last month.
Today, that dynamic has shifted. Kate has observed a growing trend toward more strategic, long-term partnerships between donors and charities.
“Funders have started to act more as long-term, strategic investors. In my experience, charity partners report that this model results in more effective donations, with the opportunity for greater impact.”
This investor mindset encourages donors to be more focused in their dealings with charities. “It forces them to really think about whether they believe in the mission of an organisation and whether they trust the leadership team,” said Kate. If you believe in the mission and trust those leading it, why wouldn’t you be happy to provide unrestricted funding?
Such an approach fosters open, two-way discussion – something Kate believes is better for both donor and charity. “The donors that we work with report that they have more satisfying relationships if they can sit down with a charity and have an honest dialogue about what’s going well and what’s going less well. Equally, a charity should feel able to say: Do you know what? We asked for this amount of money, and we were going to do this with it, but actually we’ve realised that it wasn't the best use of funds. Let’s talk about why. That’s the time to draw up a chair beside them and help them invest in their future as you would with a business.”
Kate Boswell was speaking at our UK Philanthropy Conference.
Read more from the event:
Four Gold Rules for Charity Donors