by Rachel Ayotte | Jul 9, 2024 | Article
Effective and impactful grantmakers are always looking to learn new ways to serve and aid their grantees to create the most impact possible.
In an era of trust-based philanthropy, especially, grantmakers are trying to find new and more equitable ways of empowering their grantees and making lasting changes within their communities.
Enter place-based philanthropy.
The place-based strategic philanthropy model has emerged as a nuanced approach to helping make the grantmaking process more equitable and just as impactful—if not more. In this blog, we’ll explain the place-based philanthropy definition as well as the benefits of place-based philanthropy to society.
In general, place-based philanthropy refers to a grantmaking approach that focuses on specific geographic locations or communities.
Think of it this way: populations within a rural community and populations within an urban community might have vastly different needs. But in traditional grantmaking—which is a top-down approach—grantmakers might provide both communities with the same resources without addressing their geographic-dependent needs, or empowering the people who live in those areas to express what they need.
Place-based philanthropy considers the geographic position of the communities in need, and recognises that where a community is located impacts what they do or do not need. Unlike traditonal grantmaking, place-based philanthropy empowers recipients to voice their individual needs and in turn, provides them more tailored support.
Typically, place-based philanthropy includes:
A community-centered approach: Effective place-based philanthropy prioritises the voices, needs, and leadership of local residents and organisations. Instead of identifying and addressing community challenges on their own, funders rely on local institutions to lead the charge.
Equitable collaboration: This philanthropic model encourages a non-hierarchal approach to collaborating, instead of a top-down approach—funders rely on grantees to voice their needs.
Hyper-focused support: Because placed-based philanthropy depends on receiving direct feedback from those in need, funders have the ability to provide support and solutions that are very specific to the context and needs of the community.
Nuanced impact measurement: Instead of measuring the success of grant programs using generic metrics, place-based philanthropy measures progress based on metrics that are meaningful to the communities in that area.
Place-based philanthropy can:
Create greater impact: Focusing resources and efforts on specific geographic areas—which support and acknowledge the nuanced experiences and specific needs of community members—can create a more targeted impact compared to broad, scattered and short-term approaches. Plus, this approach can address the root, systematic issues that many traditional grantmaking approaches miss.
Cultivate community capacity building: Place-based philanthropy does more than provide tangible support. It can empower local residents and organisations by involving them in decision-making processes and support their ability to address community issues independently over time.
Foster trust: When a grantmaking organisation empowers communities to rectify community issues on their own with a funder’s support, they’re more likely to trust the funding organisation. In turn, funders and grantees will have a solid, enduring relationship that can help create more impact.
While place-based philanthropy has far-reaching benefits for both the impacted communities and the grantees, many funders face challenges when incorporating the practice into their grantmaking strategies.
With place-based philanthropy, grantmakers might experience challenges with:
Complex community dynamics: Each community has its own unique cultural, social and economic status. Navigating these unique dynamics can take time and effort.
Balancing community needs with organisational goals: One of the most fundamental parts of place-based philanthropy is relinquishing control as a funding organisation. For this approach to work, funders have to trust the communities they are serving and de-prioritise existing organisational goals.
Resistance to change: A traditional top-down approach to grantmaking has long been the norm. Introducing a place-based philosophy can often be a big shift and make stakeholders uneasy.Best practices for implementing placed-based philanthropy
Despite the challenges that can come with this sort of approach, it’s well worth it in the long run.
Measuring impact can be difficult in an era of trust-based philanthropy. To show grantees that you trust them and want them to have the opportunity to express any progress, or concerns freely, and in a way that works best for them, consider oral reporting.
Involve grantees from the start of the grantmaking process to allow them to feel empowered from the get-go.
Every community has its own cultural norms, values, and traditions. Be sure to take the time to understand these nuances and integrate them into any initiatives.
Immerse yourself in the community you wish to support by talking to local leaders, organisations and residents. Listen to their stories, understand their challenges and learn about their aspirations.
To show grantees that you trust them and that they should trust you, invest in the right tools that are designed to make the grantmaking process as transparent and simple as possible. By using collaborative, easy-to-use software like Good Grants, funders can create an equitable grant review process and dive into place-based philanthropy—or trust-based philanthropy in general—in no time.
Place-based philanthropy isn’t just another philanthropic trend—it’s an effective, sustainable way to create more impact, empower communities, build capacity and ultimately strengthen the relationship between funders and grantees.
Learn more about involving your community and how Good Grants can help.
Articles
Feature focus
Ebooks
Videos
Releases
Δ