Trust-Based Philanthropy in 2025: What Nonprofits Need to Know (and How to Communicate Accordingly)

cindy5831
Aug 12
3 min read

Featuring insights from the Trust-Based Philanthropy Project, Center for Effective Philanthropy, and Exponent Philanthropy

A New Era of Grantmaking

If you’ve noticed your funders asking fewer questions, offering longer grant periods, or giving more unrestricted support, you’re not imagining it. The landscape of philanthropy is shifting.

In 2025, trust-based philanthropy is no longer just a buzzword—it’s an evolving movement reshaping the relationship between funders and grantees.

More than 70 funders across the U.S. have now publicly committed to the principles of trust-based philanthropy, including the Ford Foundation, Packard Foundation, and Robert Sterling Clark Foundation. And while this movement gained traction post-pandemic, it’s only gained momentum in today’s climate of funding uncertainty and heightened equity conversations.

So, what does this mean for your grant strategy—and how you communicate with funders?

Let’s break it down.

What Is Trust-Based Philanthropy?

According to the Trust-Based Philanthropy Project, the approach is about “redistributing power—systemically, organizationally, and interpersonally—to create a more equitable nonprofit sector.”

It’s built on six key principles:

Provide multi-year, unrestricted funding
Do the homework—streamline due diligence
Simplify and streamline paperwork
Be transparent and responsive
Solicit and act on feedback
Offer support beyond the check

The bottom line? Trust-based funders are focused on building long-term relationships—not micromanaging outcomes.

This requires a shift in how nonprofits think about funder communications—especially in the way they share impact, stories, and strategy.

Why This Matters in 2025

A recent study from the Center for Effective Philanthropy (CEP) found that 77% of funders who implemented more flexible, low-burden grant practices during COVID-19 continued those practices into 2024 and 2025.

Additionally, Exponent Philanthropy reports that small-staffed foundations are increasingly embracing trust-based practices—including site visit replacements, open conversations instead of rigid reports, and capacity-building support.

For nonprofits, this means:

More autonomy, but also more responsibility to communicate clearly
Less rigid reporting, but a stronger emphasis on transparency and long-term vision
Fewer transactional interactions, but a deeper need to cultivate funder relationships through storytelling and shared purpose

How Nonprofits Can Align with Trust-Based Funders

The principles of trust-based philanthropy are as much about how you communicate as what you deliver. Here are three ways to align:

1. Lead with Transparency—Without the Jargon

If you’re no longer submitting 15-page grant reports, your other communications matter even more. Be clear about:

What worked
What didn’t
What you’re learning
What you need

Avoid inflated language or “grant-speak.” Funder trust grows when you present a realistic, human picture of your work.

2. Frame Your Work in Terms of Partnership

Trust-based funders see grantees as partners, not subordinates. Avoid messaging that treats them only as benefactors.

✅ Instead of:

“Your support allowed us to complete X, Y, and Z…”

✅ Try:

“Together, we navigated challenges in [program area] and reached [outcome]. Your partnership helped us build the capacity to grow this work in 2025.”

This subtle shift reinforces collaboration and shared investment.

3. Use Your Annual Report as a Strategic Trust-Building Tool

Your annual impact report is no longer just a donor document—it’s a relationship tool.

In a trust-based model, reports can:

Demonstrate transparency through clear financials and authentic reflection
Show alignment between your mission and your funders’ goals
Build confidence by highlighting your systems, sustainability, and vision
Tell stories that go beyond numbers, making your work human and relatable

A thoughtfully written and beautifully designed annual report enables funders to see your leadership and feel your impact, without requiring additional reporting.

Final Thoughts

The trust-based philanthropy movement asks both funders and nonprofits to rethink how they relate to each other.

For nonprofits, it’s not about saying more—it’s about saying the right things, in the right tone, with a strategic focus on clarity, honesty, and mutual purpose.

By aligning your communications—and your annual report—with these evolving expectations, you position your organization for stronger relationships, deeper funding commitments, and long-term success.

Let your next report speak with trust, not just data.