How can you navigate power dynamics with donors?

Nobody gives money for nothing. Nor should they. Understanding who your donors are, their motivations, their needs is essential for your organisation's impartiality as well as financial good health. Avoid being donor-driven - it is important to be clear and confident about your organisation's identity. What will be your impact? What is your theory of change? What are the guardrails that you (and your trustees) that will guide you when dilemmas arise (and they will: e.g. staff arbitrarily imprisoned, COVID shocks, fickleness of donor sentiment etc). Diversity of donors really helps, as does as much core-funding as possible (to balance the requirements of programme-funding). Delight your donors with evidence of impact whenever you can.

I once had to manage 12 different donors on a multi-million dollar project and the reality is that power dynamics got the better of all of them, to the detriment of development impacts. The experience made me rethink entirely the concept of “donors” (because who is really benefiting) and the incentives that drive the unwieldy development business. We humans need the right incentive structures to truly be altruistic.

One thing I've found helpful is to understand not just the donor organization's motivations, but the motivations and needs of the people within the organization that I am working with. Who do they need to communicate impact to internally and externally? Can I help them do that (present to their Board, their staff, appreciate them in social media)? I like to try to understand individuals not just organizations. A phrase that I use with my colleagues is that we strive to be "strategy-led and donor-informed". We stay clear on our purpose and strategy, but do take into account donors' needs and motivations as we go about our work.

A tricky but important question and real situation. What might help is: 1. Establishing a mission- vision alignment first before applying for or going for funding 2. When in the partnership and realize power dynamics, first evaluate your actions based on the big picture and what it would take to manage 'egos' and or undertones and how that might impact your delivery, organization's image, your own credibility & Health and community's wellbeing and project's impact, then make a decision on whether to terminate the relationship, manage it to the closure of the grant, device a strategy to bridge the gap and be on the same page

Set the boundaries and expectation clearly right from the start. Use transparent and honest communication to ascertain key deliverable areas and clearly state the non-negotiable. always use case studies to illustrate the need for equity and autonomy

In my experience, donors look for dependability and alignment with their partners. It is important to get clarity on all possible areas of where differences might occur and on respective roles and responsibilities early in the project starting phase. Also, it is important to invite the donors to express unsaid and unwritten needs to a avoid ambiguities and chances of misunderstanding. In other words, respect each other's responsibilities and avoid making assumptions.

Develop a ‘Partnership Charter’ that outlines roles, boundaries, and expectations for both the donor and the organization. This charter could be co-created during the initial stages of the partnership to ensure mutual understanding and agreement.

It is important that the document formalizing the relationship with donors, such as an agreement, clearly defines the partnership's objectives, roles and responsibilities, milestones, deliverables, and expected outcomes, along with communication methods and channels of interaction. Furthermore, it is anticipated that this formalization results from a collaborative construction process between the involved parties, demonstrating an alignment of expectations.

Completamente de acuerdo, si no hay claridad en la ejecución de los acuerdos establecidos, los malentendidos podrían estropear la misión de las organizaciones, lo peor de todo es que por no actuar correctamente, los que se benefician de la asociación, serían los verdaderos afectados. Un despropósito total.

I have found donors appreciate this structured approach as it reinforces our organization's commitment to mutual success and maximum impact. By consistently (re)centering our organization's mission and the shared goal of realizing our vision, we emphasize the collaborative nature of our partnership. This proactive communication not only prevents misunderstandings and frustrations but also cultivates a sense of trust and synergy between us and our donors.

Implement a ‘Transparent Reporting System’ where donors have access to a dashboard that shows real-time data on how their contributions are being used and the impact being generated. This can build trust and provide a platform for open dialogue.

Uma coisa que aprendi sobre doadores em filantropia e negócios de impacto social é que eles querem compartilhar da nossa vis?o conosco. Por isso, conte sobre seus planos e sonhos, próximos passos em sua estratégia, e n?o pe?a necessariamente algo em troca, mas estabele?a uma rela??o de transparência sobre o caminho que está pensando em trilhar. Isso fará com que doadores se sintam ainda mais parte de seu projeto de impacto, o que ajuda a equilibrar rela??es de poder assimétricas.

Crie fluxos de comunica??o fluidos, que valorizem as narrativas por trás do impacto gerado e envolvam os doadores no resultado de suas doa??es. Doadores que se sentem parte do impacto gerado de forma profunda e verdadeira tendem a ser aqueles que equilibram as rela??es de poder e trabalham de forma mais colaborativa.

Para este tipo de iniciativas es importante trabajar como un equipo donde cada uno haga parte del todo y todos vean la importancia del aporte de cada uno. Cumpliendo los roles con integridad y llevando como insignia el objetivo principal, afrontando los desafíos y apalancándose con el apoyo de todos durante el proceso, de la misma manera que se debería festejar un logro obtenido como un equipo que siempre se mantuvo unido y motivado.

Empatia é a palavra-chave nessa rela??o. Se colocar no lugar do doador e entender as motiva??es por trás de cada a??o, mesmo que os caminhos possam se mostrar desconfortáveis, é uma forma importante de desconstruir opini?es pré-formadas e partir para um processo de constru??o mais coletivo e alinhado com os objetivos maiores de uma doa??o.

Get to know your client. Price reflects perceived value, often far exceeding production costs. Customers determine a product's value based on benefits and problem-solving capabilities. The same goes for financing social projects, the donor is your customer too, and like every customer, they have pains and problems that you can solve, or they are looking for a benefit that you can offer. When we start seeing our donors as clients, our perception changes from a requester > funder position to service provider > customer, and guess what, the pricing and power dynamics change too.

Organize ‘Donor Insight Workshops’ where donors can provide input on their vision and experiences. This can be an opportunity for the organization to learn from the donors’ perspectives and for donors to feel more involved and valued.

From what I’ve gathered, while appreciating your donor’s perspective is crucial, it’s equally important to maintain a balanced relationship. By asserting your organization’s values and goals, you can ensure that the partnership remains mutually beneficial and aligned with your mission, without compromising on integrity or autonomy.

In our experience, utilizing agile and participatory methodologies that center on understanding the needs of users, beneficiaries, and stakeholders, along with their potential and the environmental, cultural, and socioeconomic context in which they are situated, has proven to be the path to generating public value with solutions that are closer to the expectations of the involved parties.

Rooted in being transparent and connecting with your donors, involves treating them as partners in mission and encouraging mutual dialogue, and active decision-making, as well as sharing learnings and outcomes. Beyond sharing successes and challenges, your organization must establish an open climate that fosters trust and collaboration. Opening the horizon to operations, financial management, and impact assessment, not only invites donors to bring much more than financial resources – their expertise, networks, and feedback within the project life-cycle – it also enriches project outcomes.

Use ‘Scenario Planning’ sessions to discuss potential future situations and how they would be handled. This can help in navigating difficult conversations about what compromises might be made in hypothetical scenarios, thus preparing both parties for future negotiations.

Todo cuanto sume a la actividad de una organización, traiga innovación, creatividad y crecimiento, bienvenido sea! Si en cualquier caso algunos de los aportes de los donantes van en contra de las políticas o ética de la organización, hay que llegar a una buena justificación del porque de nuestra oposición a tal propuesta, sin que esto afecte el progreso del mismo. No se puede perder la identidad, eso no es negociable.

Launch a ‘Joint Impact Lab’ where donors and the organization can collaboratively explore new ideas for increasing impact. This lab could focus on innovative projects and provide a space for learning from each other and from the communities served.

Seus doadores conhecem outros projetos como o seu, que ele/ela pode ser ajudado ou n?o. Solicite feedback e vis?es sobre o mercado/nicho em que está atuando, isso te ajudará a ter uma vis?o mais ampla do seu impacto no mundo, de propostas de valor parecida e de como seu projeto é lido externamente.

Engagement and evaluation tools such as workshops, surveys, interviews, focus groups, and donor panels can all be helpful. This can increase engagement with donors and lead to increased donor retention and future donations. Encourage donors to get involved in multiple ways and they will want to stay involved.

Develop a ‘Donor Education Program’ to inform donors about the complexities of the social issues being addressed. This program can include field visits, speaker series, and informational materials that provide a deeper understanding of the challenges and the work being done to address them. This can help align donors’ expectations with the realities on the ground.

Organiza??es doadoras devem buscar de forma propositiva a constru??o de governan?as mais diversas e conectadas com as causas que atendem. Como exemplo, ter em seus conselhos pessoas que representem de alguma forma as quest?es sociais que se pretende endere?ar garante vis?es mais equilibradas, mais coerência nas a??es e maior comprometimento com a causa.

Based on what I’ve observed, an often overlooked perspective in discussions about power dynamics with donors is the impact on smaller, grassroots organizations. Despite the focus on larger NGOs and donors, smaller organizations may face unique challenges. Providing tailored strategies for grassroots organizations can offer valuable support and insights to navigate power dynamics effectively in the sector.

As a social impact consultant I always personally interview all donors involved separately asking the same questions. I then share this benchmark anonymously with the other donors. This provides a liberatory and systematic process that can be executed for years to come.

Public recognition can add a certain type of appeal to many donors. A study at Yale University found that the probability of giving increased from 11% to 13.7% when donors were told their name was going to be printed in a newsletter, while the average gift increased by 14%. Many donors enjoy the recognition of having their name put on a wall, their contribution highlighted in a newsletter or simply being thanked at a reception or on social media.