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Emily Finchum-Mason, Doctoral candidate in Public Policy and Management, University of Washington

Some funders are embracing 'trust-based philanthropy' by giving money without lots of obligations

Taking grantees' word that they will spend money responsibly frees up time and can strengthen relationships. Klaus Vedfelt/DigitalVision via Getty Images

With most foundations, the board of directors and top executives set all funding priorities. Nonprofits seeking money from those funders, in turn, must demonstrate an intention to do work that conforms to those priorities. The same system prevails with many individual wealthy donors.

Any nonprofit awarded a grant must follow the funder’s priorities and comply with all of its reporting requirements – which, with some foundations, can be very time-consuming.

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