Individual donors contribute 68% of the $427 billion philanthropy industry. Yet, despite this significant influence, fundraisers often shield these donors from confronting the uncomfortable truths behind modern philanthropy’s systems. Too frequently, our current framework perpetuates the injustices and inequities nonprofits aim to eliminate by keeping donors disengaged from hard conversations about where their money flows, who controls resources, and why certain communities continue to face persistent disparities.
To move beyond this “toxic charity” model and towards a more transformative approach, we must break free from transactional giving and focus on a shared vision of community wellbeing. This shift involves deliberately centering race, equity, and social justice, being intentional about the types of funders we partner with, and cultivating networks that prioritize reciprocal support. It also means valuing all contributions equally—recognizing that time, expertise, and lived experience can be as impactful as financial gifts.
Community-centric fundraising challenges fundraisers and donors alike to address the root causes of inequity, acknowledging capitalism's destructive role in maintaining injustice. Instead of perpetuating a cycle where resources and power remain in the hands of the few, this approach encourages us to view philanthropic efforts through a more holistic lens. Embracing these principles means refocusing our fundraising strategies and paving the way for long-term, sustainable impact that benefits everyone.
Refocusing may look like:
Shifting Decision-Making Power: Instead of top-down funding decisions, involving community members in setting priorities, evaluating proposals, and determining how resources are allocated.
Providing Unrestricted, Long-Term Support: Moving away from restrictive, short-term grants and investing in multi-year, flexible funding. This approach acknowledges that meaningful social change takes time, and it empowers community-based organizations to build capacity, respond to evolving challenges, and pursue sustainable growth rather than constantly scrambling for narrowly designated resources.
Embracing Radical Collaboration: Sharing information openly about funding decisions, costs, and outcomes and encouraging dialogue among funders, nonprofits, and community members to break down silos and align on shared goals.
Community-centric fundraising isn’t just an alternative giving model; it’s a necessary evolution. It reimagines the relationship between donors and the communities they support, placing agency and decision-making power where it belongs. With deliberate action, greater transparency, and sustained commitments, we can transform philanthropy into a force that breaks down systemic barriers, uplifts marginalized voices, and generates collective, lasting impact.
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