Balancing Funder and Grantee Desires

This article was written by 2025 Mutz Philanthropic Leadership Institute class member K. Tyrone Spann

When discussing the future direction of philanthropy, it is essential to consider both the goals of funders and the practical realities faced by grantees. The question arises: how can we balance the priorities of those providing financial support with those directly engaged in the work?

Charity has long been a foundational element of societies around the world. Historical examples, such as the Biblical practice of landowners setting aside portions of their fields for the less fortunate or communities ensuring the well-being of widows and orphans, reflect the importance of caring for those in need. Over time, these practices have evolved into the modern philanthropic system we recognize today.

As societal issues have become more complex, philanthropy has adapted, with various approaches emerging to address these challenges. From the work of George Peabody, often considered the "Father of Modern Philanthropy," to the philanthropic efforts of figures like Andrew Carnegie, John D. Rockefeller, and Henry Ford, the field has continually evolved. In recent years, approaches such as Collective Impact, Place-Based, and Trust-Based philanthropy have gained favor among foundations and individual donors. 

This shift responds to today’s evolving socio-economic conditions. While funders consistently seek ways to meet the needs of the communities they serve, an important question remains: who should have the primary influence in shaping the direction of philanthropy, those who control the funds or those who implement the work?

Having worked in the nonprofit sector for over 26 years, I have gained a range of perspectives through various roles, including program officer for a private foundation, administrator and fundraiser for nonprofit service providers, and board member for nonprofit organizations. I have also taught nonprofit management and philanthropic studies at the university level. This diverse experience has provided valuable insight into how philanthropy functions and the dynamics between funders and grantees. While progress has occurred, there is still room for improvement in balancing power and influence between the two groups.
From a funder’s perspective, resources are available to address community issues aligned with the funder's values, but funders often lack the capacity or expertise to address these issues directly. As a result, they rely on external stakeholders with the necessary knowledge and experience to implement their initiatives. On the other hand, grantees typically have the expertise and desire to address challenges directly but may lack the financial resources needed to conduct their efforts.

Over the years, this relationship has led to significant contributions in various sectors, such as:

• The establishment of private education institutions and universities in the United States.
• Advancements in healthcare, including organ transplantation, the development of insulin, and the eradication of polio.
• The creation of settlement houses addressing mental health, homelessness, and domestic violence.

However, as the philanthropic landscape continues to evolve both locally and nationally, it is crucial to reassess how funders and grantees collaborate to ensure their collective efforts remain effective and responsive to changing needs.
Funders would benefit from reflecting on the substantial influence they hold in shaping the conversation around philanthropy and how this influence impacts the broader sector. Service providers, in turn, should have a more significant role in determining how resources should be allocated effectively and impactfully to address the challenges they face. They are on the front lines and can offer invaluable insights into how the resources funders provide can be most impactful, both programmatically and operationally.

As we navigate a period of uncertainty regarding the future of public-private partnerships in addressing socio-economic issues, it becomes even more critical that the relationship between funders and grantees remains balanced. All stakeholders must have a voice in the conversation to ensure the most effective solutions that not only meet the desired outcomes funders aim to achieve but also meet the actual needs of the grantees.