Who’s Got the Power? Creating Positive Funder Relationships

Logo from HBO’s Insecure.

Nonprofits can serve as a hub for change, uniting people around a common mission. This hub sometimes brings people together who might not otherwise connect in their day-to-day lives. You may have individual funders or representatives from a foundation donating towards a cause in a community that is not their own. Organization staff may not live in the communities they serve or they may not have directly experienced the issue that they hope to improve. Uniting unlikely allies to make a change for good can be positive if everyone approaches the relationship with mutual respect and recognition of the value that each person brings.

A recent pop-culture reference that beautifully captures this dynamic is HBO’s hit comedy Insecure. Lead character Issa Dee works for a nonprofit organization called We Got Y’all, where the well-meaning leaders and staff frequently traffic in microaggressions and savior-isms in service of their mission. Meanwhile, Issa finds herself struggling to navigate her desire to serve her community while also fighting to be heard and valued within the organization.

The funder-grantee relationship can be similarly complicated. There’s nothing worse than being in a relationship where you don’t feel appreciated or understood, no matter what kind of relationship it may be. When an organization enters a partnership with a funder, there’s an expectation of support for your great work and respect for your expertise. Unfortunately, the power dynamics between grantmakers and grantees creates a recipe for imbalance. If you add the context of race and class, this imbalance becomes tilted strongly in one direction. When that happens, you may experience scenarios like the following:  

• Organizations can come to resent their funders.

• Funders can come to feel like their value is only transactional.

• Organizations can take on projects that don’t advance their mission

• Funders aren’t seeing the results they thought they were investing in.

• Organizations, especially those serving traditionally-oppressed communities, can be left feeling like they’ve exploited their cause for money.

So what do you do to avoid all of this while still getting funded? And can it be done?

Here are some tips to avoid unbalanced donor relationships and, instead, ensure mutual respect and the best possible outcomes for the people you serve:

What funders can do:

Listen to your grantees (hint: surveys don’t count): As I’ve already stated, the power dynamics in grantmaker – grantee relationships create an imbalance in power when in fact, the grantmaker needs the organizations they fund to make an authentic impact. That’s why it’s hugely important to truly listen to your grantees, demonstrating that you value their experiences, their voices, and their contributions. Now, you may point to your annual survey as a way that you solicit feedback. I’m going to be radically honest, edgy even - these surveys are often viewed as an exercise in seeking data and not meaningful feedback. If you want to have an actual relationship, open up a consistent dialogue with your grantees and listen. If your grantees serve communities of color, please pay close attention and give genuine consideration to the issues that they raise about their true needs. Trust me, they feel incredibly vulnerable when expressing feedback to you so, if they bring it up, they are giving you valuable insight.

Fund what counts to your grantees: I know many foundations are steeped in the research about the issues they fund. With that said, if you have a relationship with your grantees and you trust and know them, fund the things that matter to them. I know you might be excited about project-based learning, however, this education program may actually need investment in professional development for their staff. Or you may believe that they need to publish a research brief, present it at three to five major conferences, and then report metrics back to you about page visits and downloads. However, if the organization you’re supporting needs to improve their website to help them do all of these things well, support them in that effort. If you invest in the initiatives that make your grantees stronger, they will be better able to deliver on the items that are strategically important to you.

Give context for those requests (you know the ones): I recognize that the inner workings of a foundation can be tough to navigate. Program officers have a portfolio of grantees to manage, site visits, research to read, and more. There may be a board that needs to approve your requests. We get it. When you reach out with a request that will take a significant amount of time, share a bit of context and acknowledge the potential for inconvenience. Just the gesture of acknowledging the impact on them demonstrates value for your grantees’ time and for the effort that certain requests will take in organizations that are often under-resourced and stretched thin.

Say thank you: I know the grantmaking process includes a formal thank you for grantmakers. Showing appreciation to funders is certainly warranted given the significant investment in an organization’s mission. For some reason, the process rarely includes appreciation for the grantee and acknowledgment of their impact. This imbalance exacerbates the power dynamics instead of creating a reciprocal relationship where the contributions of all parties are valued. If you are a grantmaker (or if you know one) encourage them to take some time to thank their grantees for their partnership.

What grantees can do:

Remember nontransactional interactions: Initiate non-transactional interactions when you can. Invite donors to join you for a site visit or call them to share an update. These small touches go a long way.

Ask for advice: Sometimes people struggle with what to say to a funder with whom you’ve had a hard time building a relationship. One easy technique is to ask your funders for advice. While it may be uncomfortable to share a genuine challenge for fear of being judged, I think asking for advice demonstrates strategic thinking and how you approach tackling challenges in your organization. Additionally, funders have interesting insights and examples from other grantees to share. 

Share those wins: Funders love learning more about your issue. Share interesting articles about your mission area or OpEds that you and your team wrote. Funders also love to join you in celebrating wins beyond your grant deliverables. Feel free to share a note from a program participant about the impact of your work or let them know about an exciting new hire for your team. Either way, find ways to stay in touch.

Say thank you: This goes without saying and most grantees are already doing this in formal ways. It’s important to also remember to share a personal thank you to the individuals who serve as your point of contact inside the foundation. You can simply shoot them an email outside of the formal letter process or send a handwritten note. Everyone likes getting fun mail, even your program officers.

Again, the relationship between funder and grantee lacks balance due to the power dynamics created by money (and often compounded by racism and marginalization). With effort, however, a funder relationship can be balanced and fulfilling, with both parties working together towards a common goal.