A charity and think tank has called for philanthropy to be “turned inside-out” to make grant-giving more inclusive and transparent.
New Philanthropy Capital has released guidance outlining its approach to “open philanthropy”.
The guide, published today, is based on an 18-month experiment by the organisation, which saw it distributing more than £570,000 of grants to charities.
The 25-page document outlines the NPC’s tips for helping grantmakers to adopt the open philanthropy method using a three-strand approach.
“Open philanthropy is a term we use to mean being as open as possible in the practice of philanthropy – transparently sharing everything you do and inclusively inviting others into your processes and decision-making,” reads the report.
The first of the guide’s three strands looks at how foundations can create an open process, such as by recruiting grant-making panels with a range of lived and professional experience.
Another section examines how to make grant-making decisions and how to allocate funding in a collaborative way.
Lastly, the report looks at how foundations can assess the impacts of their grants, such as on those who received the money and in the funding sector more broadly.
It is the first time the think tank has explored the concept of open philanthropy.
Tris Lumley, director of innovation and development at NPC, said: “Open philanthropy aims to be radically transparent and inclusive – turning usual foundation practice inside out and bringing people with lived and professional experience in.
“They set the strategy, design the fund, and allocate grants. It’s also transparent in that the work is done in the open.
“It’s an approach which centres accessibility, is designed with diversity in mind, and aims to foster trusting relationships between grantees and funders.”
Lumley said he hoped the guide “piques funders’ curiosity about a way of grant-making that is open and inclusive rather than closed and exclusive”.
Founded in 2002, the NPC is a charity and think tank working in the social sector.
It seeks to help charities, social enterprises, corporates and those in the public sector to maximise their social impact.