At every level of the philanthropy ecosystem – from donors to funders, from nonprofit board members to executive directors and their teams – the driving force is a desire to effect positive change in our communities. Since the pandemic and racial reckoning of 2020, the importance of the mission of making our community stronger and more equitable has never been clearer. However, how we do that – as funders, as donors, and as nonprofits – has come under increased scrutiny.
“We are all focused on this mission of making the county itself stronger,” says Ginny Loughlin, president of Applied Good, a consulting firm that specializes in nonprofit leadership development, transition management, and community building. Over the past 12 months Loughlin, who also is a member of the Foundation’s Advisory Board, has moderated a series of convenings of the Westchester Funders Network. The Westchester Funders Network was launched by The New York Community Trust – Westchester in 2015 as a peer-to-peer network for funders in the county. Convenings have focused on the nuts and bolts of grantmaking as well as how unconscious bias can play a deleterious role in grantmaking decisions.
In 2023, the Network brought together local funders and nonprofit experts to discuss issues and share best practices to build transparency, equity, and trust into the grantmaking process. The meetings, titled “You Write the Proposal, We Read it – What’s Really Going On?” have shed light on how funders can streamline their processes, why increasing support for core operating expenses that reflect the true costs of running a nonprofit is critical, how grantseekers can build trust by communicating frequently and candidly with their funders, and why equity matters in the overall nonprofit ecosystem.
These convenings have led to energizing exchanges for grantseekers and grantmakers alike. “You leave these conversations and you find people out in the parking lot still talking after it ends,” says Patti Lavan Horvath, program officer for the Field Hall Foundation, a private foundation that supports programs and projects for low-income and vulnerable older adults and their caregivers in Westchester, Dutchess, and Putnam Counties.
It’s all part of a national movement in philanthropy toward greater transparency in the grantmaking process that is gaining momentum. Transparency benefits both grantees and grantmaking organizations such as foundations, giving circles, and government funders, helping them work more effectively and magnify their impact.
Here’s how:
It builds trust. When applicants are left wondering why their proposal was rejected, or unsure whether it’s worth their time to reapply, promising projects can lose momentum. Conversely, clear information about decision timelines, reporting requirements, and the criteria behind decision-making helps applicants evaluate their projects, and funders become trusted partners with a stake in their grantees’ future success. In the long run, that adds up to greater impact and positive change, community-wide.
It facilitates communication. “I was really surprised at how many nonprofits were apprehensive about contacting me with questions,” says Horvath. “We were intentional about being accessible and breaking down barriers.”
Clear, open communication leads to greater understanding, and grantees and funders often find there is much to learn from both sides. Nonprofits possess detailed knowledge and understanding about vulnerable populations, emerging policy work, and opportunities to make systemic change. Grantmakers, in turn, can share models they have seen succeed in similar communities. Open communication helps both organizations learn best practices to effect positive change.
It eliminates bias. “I think the conversation as much as being about transparency, has been about collegiality,” Loughlin says. Transparency is an important step in placing funders and nonprofits on a more equal footing as they align their goals. Gone are the days when funders supported pet causes based on intuition, favoritism, or poorly articulated criteria that may have concealed unexamined bias. The process of articulating criteria ̶ and being open to feedback from applicants – allows grantmakers to be rigorous about equitable standards. Particularly for BIPOC-led organizations, the process is complicated by institutional bias and other outmoded norms. “Collegiality, acknowledging that we’re in this work together, is critical to build trust,” says Loughlin.
It streamlines processes. Every grantmaker has had the experience of reviewing an application that just isn’t a match. Setting applicants up for success is the solution. Applying for a grant is a time-consuming process, so transparency around criteria, deadlines, timelines for decisions and announcements, reporting requirements, and renewals is in everyone’s best interest. This helps applicants evaluate their projects to determine if they’re ready to apply for funding, and if so, just where funding would do the most good.
The Results: As a result of the convenings, a number of grantmakers streamlined their processes, created shorter proposal forms for smaller grants, and provided clearer instructions about their application processes. The group will continue to explore how philanthropy can continue to build trust with nonprofits.
The wider community joined the conversation on March 4 at a Community Matters event at the Jacob Burns Film Center that featured a screening of the documentary film Uncharitable, a powerful call to action that examines longstanding practices in the nonprofit sector and urges grantmakers and individual donors to increase support for core operating expenses. Following the screening, a panel discussion with the film’s director, Stephen Gyllenhaal, and Kathryn O’Neal-Dunham, CEO of Philanthropy New York, a regional association of grantmakers, was moderated by The New York Community Trust – Westchester Vice President Laura Rossi. The film and panel sparked a robust conversation with the sold-out audience and has inspired community members to host future screenings of the film.
“These conversations are part of a national movement to expand awareness about the importance of the nonprofit sector and the need to support both core operating expenses and program expenses,” notes vice president Laura Rossi. “When grantmakers and individual philanthropists understand nonprofit finances, and what it takes to address societal needs and advocate for lasting change, we can build a community that works for all.”
