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What’s In It for the Funder?
Rethinking How We Frame Grant Relationships

by Lauren Steiner

What’s In It for Them? A Question Every Nonprofit Should Embrace.

In a recent conversation with Caren Yanis of Croland Consulting, we found ourselves circling a deceptively simple question: What’s in it for the funder?

Even in the world of grants- where gifts often flow from family, community and corporate foundations – giving operates within a framework of perceived value. Hospitals and universities have long understood this.

Their institutional grants often reflect a compelling value exchange:

  • Visibility
  • Legacy
  • Alignment with large-scale impact

In some cases, those relationships also come with informal access to leadership or influence, which, while sometimes controversial, reflects the reality that mutual benefit plays a role even in institutional philanthropy.

So what does that mean for community-based nonprofits and grant-seeking organizations?

Too often, we default emphasizing only the needs of our communities- and yes, those needs can be very real and urgent. But in today’s funding landscape, we must also be clear about the shared outcomes and mutual rewards of supporting our work.

Philanthropy is evolving. Foundations and newer philanthropic entities are increasingly drawn to initiatives where they can see their values reflected and impact achieved. They want to move the needle and feel meaningfully connected to the cause.

That’s not a conflict of interest; it’s a call to reframe our approach.

Here are three shifts nonprofits can make:

  • Move from mission-only to mission-plus. Ground your case in values you share with the funder, not just your service goals.
  • Articulate the “we” in your impact. Make the funder a stakeholder in the solution, not just a source of support.
  • Elevate personal connections. Funders support what they care about, and care grows through relationships.

Our missions aren’t just worth funding- they’re worth belonging to.

Have you seen this play out in your own grantseeking? I’m curious how others are navigating the balance between mission and mutual benefit.

Further reading on this topic:

“Inclusive Philanthropy”- Stanford Social Innovation Review

This article explores how philanthropy can shift from a top-down model to one that centers community voices and lived experience. It challenges funders to move beyond managerial efficiency and embrace inclusive processes that reflect the values and priorities of those most affected by the issues. The authors advocate for shared governance, mutual accountability, and co-creation, suggesting that philanthropy becomes most powerful when it reflects a we, not just a they.

Core takeaway: True inclusivity in philanthropy means treating communities as partners in decision-making—not just recipients of funds.

https://ssir.org/articles/entry/inclusive_philanthropy

“Community-Driven Philanthropy: Participation, Partnership, and Power”- Grantmakers for Effective Organizations (GEO)

This GEO resource highlights how funders can practice community-driven philanthropy by shifting power, building authentic partnerships, and involving community stakeholders in funding decisions. It provides examples of participatory grantmaking and offers practical steps for funders to listen more deeply, share control, and prioritize trust. The report emphasizes that lasting impact happens when those closest to the work help shape the strategy.

Core takeaway: Community-driven philanthropy is about power-sharing and partnership, not just financial support.

https://www.geofunders.org/resource/community-driven-philanthropy-participation-partnership-and-power/

This blog has been re-purposed from Lauren Steiner’s LinkedIn newsletter. For more insights from Lauren, subscribe to her newsletter, Grant Seeker’s Edge.


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