How To Foster Trusting Relationships With Grantmakers
- Nonprofit Learning Lab
- Oct 13
- 5 min read
This is a guest blog.
Trust is the cornerstone of effective philanthropy. However, the traditional funder-grantee relationship can often feel transactional, especially if it is focused more on compliance than collaboration.
Trust-based philanthropy offers a different approach, one that’s rooted in transparency, shared power, and mutual learning. By fostering two-way communication and collaboration, your nonprofit can build more trusting, resilient relationships with grantmakers. Notably, a 2024 survey revealed that 89% of grantmakers support or embrace trust-based philanthropy practices.
Beyond strengthening relationships, this approach empowers nonprofits to be more responsive and innovative in their work. Embracing these principles leads to smarter use of funds and greater impact. Let’s explore practical strategies to cultivate trust-based relationships so your nonprofit can drive meaningful change.
Establish Connections Before Applying.
Connect with impact investors before submitting proposals. Whether through a formal meeting or casual conversation, establishing these touch points early sets you up for successful applications later. Especially considering that grantmaking regulations are constantly evolving due to budget adjustments, these connections kickstart the relationships you need to stand out.
FreeWill’s nonprofit grant writing guide suggests a few ways to start meaningful relationships, including:
Send a warm introduction by email or phone to express your interest in their work and discuss funding opportunities.
Invite funders to your nonprofit’s events or physical facilities to see your mission firsthand and meet your team.
Attend conferences or community events where impact funders will be present.
When possible, research funders before these conversations. Understand their priorities and projects they’ve funded in the past for guided, productive conversations.
Initiating conversations with potential funders allows you to discuss mission alignment, helping both you and the grantmaker understand each other’s goals and intended impact. Mutual understanding lays the groundwork for a shared vision of what success looks like.
Plus, many grant opportunities are invitation-only. Building rapport increases your chances of being considered for these opportunities. When grantmakers recognize your organization’s name and mission, your proposal is more likely to stand out when it comes across their desk.
Approach the Relationship as a Partnership.
Rather than viewing grants as transactions or trying to “please” funders, shift your mindset toward collaboration. Impact funders want to support organizations that view them as thought partners, not just check writers.
When the relationship is framed as a partnership, there’s room for candid conversations, strategic alignment, and long-term impact.
You might invite funders into strategic decisions when appropriate, such as pivoting a program or scaling an initiative. For example, let’s say you’re considering launching a new program to address an emerging community need, like expanding mental health services for youth. Loop your impact funders into the conversation to see if they’ve funded similar initiatives or have access to research and networks that can inform your planning. Their input can help sharpen your strategy and signal that you value their experience beyond the checkbook.
Remember, a partnership goes beyond funding. Most nonprofit leaders (52%) agree that funders are aware of the challenges nonprofits face, and collaboration allows them to tap into the funder’s expertise. Show appreciation for grantmakers’ knowledge, guidance, and commitment to your mission. Acknowledging their non-financial contributions to your shared vision reinforces the relationship.
Be Transparent With Data.
Data is a powerful tool for learning from results, building trust, and driving greater impact. While many grantmakers require reports to ensure their funds are achieving meaningful outcomes, effective reporting offers more value than simply maintaining compliance.
Be honest about your successes and challenges to tell a story that’s grounded in results and highlights the realities of your work. With a clear approach to measuring impact, reporting becomes a natural extension of your daily work rather than a one-off obligation.
Why Reporting Matters
UpMetrics guide to impact measurement explains that effective reporting matters to both parties for different reasons:
Mission-driven organizations can:
Stay accountable to stakeholders
Learn what strategies work best
Focus their budgets on important needs
Open team members’ eyes to the importance of their work
Strengthen their stories within marketing materials
Scale their impact based on performance
Meanwhile, impact funders can:
Ensure grantees are being properly governed in order to achieve their missions
Enforce their reporting requirements
Strengthen relationships by understanding why their support matters
Collect hard proof that their contributions are making a difference
Feel recognized for their support
Essentially, transparent data reporting creates an open dialogue that benefits both impact funders and impact producers by driving better outcomes. It’s also helpful to have this data on hand to add to your grant proposals and strengthen your case for support.
Key Data To Provide
There are two types of data your nonprofit might collect and share with grantmakers:
Quantitative data, such as the number of beneficiaries served, program completion rates, or financial outcomes.
Qualitative data, including testimonials, case studies, and participant feedback that contextualize the numerical data.
The exact data you share will depend on your mission and the grantmaker’s requirements. For example, you might report on your social return on investment (SROI) for the exact projects that funders want to know about. While ROI only allows you to measure financial returns, SROI quantifies the value of specific programs or projects. Here are two examples showing the difference:
ROI: We saw a 200% return on the $50,000 investment made in the employment program.
SROI: For every dollar invested in the employment program, we created a social value of $10. This is based on the $500,000 worth of value generated by helping 100 individuals secure jobs.
While ROI provides financial insight, impact funders are often especially interested in the social impact of their investments, which helps them understand how their support improves lives in tangible ways.
No matter what data you provide, share what went well, what didn’t go as planned, and what you’re doing in response. This signals accountability and strengthens trust in your nonprofit. You can also outline the methods you used to collect data to provide transparency into the process.
Build Capacity for Accountability.
Invest in internal systems to help you track, measure, and communicate progress clearly. Effective systems can range from your existing CRM (i.e., Salesforce for Nonprofits), marketing tools (like social media platforms), or tools purpose-built to report on your nonprofit’s progress, such as a dedicated impact measurement platform.
By using reporting tools that keep your data organized, you ensure that grantmakers and other stakeholders can easily see the impact of your work. This approach also strengthens transparency and supports trust-based philanthropy by allowing your organization to be open about its operations.
You should also maintain a regular communication cadence. Keep grantmakers engaged and informed through regular updates, check-ins, and previews of new initiatives to ensure they’re always in the loop.
For financial accountability, regular nonprofit audits further demonstrate your organization’s commitment to maintaining high governance standards, assuring stakeholders that every dollar is accounted for and invested wisely.
Trust-based relationships with grantmakers ultimately lead to more funding for your nonprofit. While the grantmakers you connect with will take notice, you’ll also enhance your reputation among other impact funders. Commit to ongoing communication, and you’ll start building long-term, collaborative relationships.
