Improving grant reports with trust-based philanthropy 

The grant reporting process can be a powerful tool for streamlining progress updates, assessing setbacks and, ultimately, amplifying impact. Grant reports help both grantmakers and grantees assess progress and identify challenges — both of which are crucial for better resource allocation, planning and implementation. In essence, a grant report keeps both parties on the same page, on track and making the most impact possible.

However, the reporting process can often feel pretty oppositional to trust-based philanthropy — a concept that underscores the importance of creating a more inclusive and equitable partnership between grantmakers and grantees. 

What is trust-based philanthropy, and how does it impact grant reporting?

In an effort to make grant funding more collaborative and equitable, trust-based philanthropy is all about shifting the power dynamics away from the traditional funder-grantee relationship and providing nonprofits with support beyond grantmaking dollars. Instead of top-down decision-making from grantmakers, who traditionally have had more power, trust-based philanthropy involves creating and sustaining a collaborative, transparent and more holistic partnership between the two parties.

For grantmakers who want to adhere to trust-based philanthropy and create true, valuable partnerships, requesting strict, detailed grant reports from grantees can seem like a challenge. The traditional grant reporting process is often onerous for grantees and reinforces the idea that the grantees are not equal partners but more like direct reports.

So while grant reporting is absolutely essential to making real, tangible impact, grantmakers have to adopt new methods for collecting information — in a way that is mutually beneficial, reduces the burden on grantees and allows both parties to work together to create more good.

3 ways to improve grant reports with trust-based philanthropy

1. Redefine measures of success and setbacks  

Typical grant report requirements often include quantitive data only, like revenue and expenses. But by only including these metrics, grantees don’t have the opportunity to provide further explanation, or more nuanced information — information that’s often equally as important as other markers of progress.

So, in addition to qualitative insights, grantmakers can request grant reports also include qualitative insights like:

Stories and testimonials:  Encourage grantees to share insights from beneficiaries who are directly benefiting from the partnership. Not only does this help both parties to better understand the real implications of their work, but it allows grantees a chance to show other areas of progress.

Context: Allow grantees to provide any necessary context like community demographics, history or socio-economic factors that may influence impact. This allows grantees the chance to explain potential challenges or even a need for more support, which is essential for helping those in need.

Insights from community stakeholders: Invite grantees to provide testimonials or further information from community partners they’re working with to help paint a more holistic picture of their influence in the community.

2. Prioritise collaboration 

One of the most fundamental pieces of trust-based philanthropy is collaboration. Grantees should feel like a partner in the process of creating and measuring impact — not direct reports.

To make collaboration a priority in grant reporting, be sure to:

Set goals together: Invite grantees to be active participants in the requirement process. Together, consider what metrics are most important, and which can be left out. Not only will that allow grantees to feel like partners, but it will also allow for more effective impact strategies given that grantees are closer to the work, and often better understand the objectives. 

Engage grantees in the assessment process: Grantees should feel like an integral part of the process. Invite them, perhaps through regular check-ins, to review the grant report with you to discuss it in real time. 

Use the right tools: Collaborative tech that offers tons of post-award features actually helps the reporting process feel collaborative — essential for trust-based philanthropy. With the right tools, grantmakers can reduce administrative burdens for grantees, which shows respect for grantees’ time and efforts and makes it easy for them to report. Plus, overall reporting efficiency helps everyone focus on what’s most important: making an impact. 

3. Encourage honesty and transparency

Trust-based philanthropy is all about — you guessed it — creating trust between both parties. And one of the only ways to create trust is through vulnerability and honesty. 

To do this in grant reporting, encourage grantees to:

Detail challenges and concerns: In the grant report, ask grantees to outline specific hurdles they encountered — no matter how big or small. Or, ask them to consider any future concerns that are on their minds. Of course, this helps both parties plan and strategise more efficiently, too.

Prioritise effort and improvement over results: The truth is, no grant report or organisation is perfect. So, instead of asking for flawlessness, ask for improvement by allowing for a more iterative approach to reporting. Not only does this put grantees more at ease, but putting progress over perfection often leads to more success. 

Improve grant reporting — and impact — with trust-based philanthropy

Some of the best grant report examples, which are often co-created with grantmakers, not only help to improve social impact and help to progress the mission, but help foster and maintain a crucial relationship between grantees and grantmakers. 

By adopting the right principles, best practices, and tools, grantmakers and grantees can create true partnerships, which is a win-win for everyone: grantees, grantmakers and the communities they serve.