In today's ever-changing social sector, nonprofits face the challenge of adapting to dynamic societal needs, technological advancements, and evolving stakeholder preferences. Recognizing and adapting to these changes is essential for organizations striving to navigate the complexities of our world effectively, enhance organizational sustainability, and drive meaningful impact in their communities. From charitable giving trends to public accountability to community engagement, nonprofit and philanthropic entities are navigating a multifaceted environment that demands strategic reassessment and innovative approaches.

Traditional power dynamics and fundraising practices can perpetuate inequity and hinder efforts to address systemic societal issues. Many societal issues are too large, complex, and deeply rooted in systems for individual organizations to tackle alone. In these cases, collaborative partnerships and community-centric approaches have emerged as crucial strategies for driving systems change and addressing root societal issues.

Community-centric fundraising and community-engaged philanthropy are progressive models that prioritize equitable practices, authentic and ethical relationship building, and relational community engagement. Community-centric fundraising emphasizes prioritizing entire communities over individual organizations, valuing all contributions and contributors equally, and fostering sustainable, equitable, and inclusive fundraising practices. Similarly, community-engaged philanthropy advocates for actively involving key stakeholders, meaning all those impacted by a nonprofit’s work (i.e., staff, volunteers, participants, funders, board members, and community partners), in the fundraising process to ensure their voices and needs are central to decision-making.

Equity, relationship building, collaborative partnerships, and long-term unrestricted funding emerge as key themes across contemporary literature on how philanthropy impacts system change. Embracing these concepts and values can support nonprofits and philanthropic entities in creating sustainable impact and driving meaningful change within their communities.

There is a growing emphasis on trust, integrity, and relationship-building in philanthropy. Building strong relationships with stakeholders fosters mutual support, facilitating more impactful and sustainable collaboratives and initiatives. Not to be overlooked, time is one of the essential ingredients in building trusting relationships with stakeholders and working toward sustainable systems change of any kind. 

To effectively implement the principles of community-centric fundraising and community-engaged philanthropy, nonprofit leaders and fundraisers can adopt the following recommendations across three areas of organizational management:

Relationship building

1. Build trusting relationships with all stakeholders, including participants, staff, donors, funders, volunteers, community partners, and board members.
2. Engage in conversations to identify common ground and shared values, establishing mutuality.
3. Listen to stakeholders' stories to learn about their needs, dreams, hopes, and barriers. 
4. Follow up on listening sessions with feedback loops and organizational plans to address concerns. 
5. Create regular opportunities for staff and board members to interact, reflect, and work together.
6. Model leadership styles that foster collaboration and shared decision-making.

Equitable fundraising practices

1. Recruit diverse development staff and board members who reflect the community your organization works with.
2. Treat donors and funders as valued partners, and be open to difficult conversations and feedback.
3. Provide honest feedback to funders on grantmaking processes.
4. Make financial reports publicly available and transparent.
5. Take time to recognize and celebrate successes, as well as time to reflect and learn from failures.
6. Conduct audits to ensure values alignment and identify equity gaps.
7. Compensate those who contribute stories and time to benefit the organization.

Advocacy via strategic partnerships

1. Cultivate spaces for diverse voices to join decision-making tables. Redesign decision-making processes to ensure all can fully participate.
2. Establish shared agreements to guide partnerships through challenges and success.
3. To ensure inclusive learning opportunities and diverse representation, multiple staff members should attend external partner meetings, gatherings, conferences, etc.
4. Utilize meeting protocols to ensure everyone has opportunities to share their voice.
5. Share opportunities widely within the organization to promote inclusivity.
6. Invest in capacity-building opportunities for staff and community members.
7. Remain flexible and responsive to evolving needs and landscapes.

By embracing these recommendations and adapting them to their organizations, nonprofit leaders and fundraisers can harness the transformative potential of community-centric fundraising and community-engaged philanthropy to drive meaningful systems change and foster positive social impact within and throughout their communities.

Julie Bomersback is 2024 graduate of the Masters of Nonprofit Leadership and Management program at Arizona State University and a nonprofit professional working in Glenwood Springs, Colorado. She is the Development and Communications Associate at Valley Settlement, a nonprofit working with Latine families through two-generation programs. She holds a Bachelor of Arts from the University of Denver and is pursuing a Master's in Nonprofit Leadership and Management through Arizona State University.

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