Giving Compass' Take:
- Paul D. Daugherty examines how lean funders can resource equitable, inclusive communities despite current difficulties in the nonprofit sector and civil society.
- How can lean funders ensure that their work is guided by the needs of the communities they intend to serve?
- Learn more about trends and topics related to best practices in giving.
- Search Guide to Good for purpose-driven nonprofits in your area.
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Imagine your neighborhood, town, city, or rural community is facing a significant need or an exciting opportunity, yet it is lacking the financial resources to respond. Too often, the funding and decisions that shape our communities are made far from home without local voices at the table, demonstrating the importance of resourcing inclusive communities. Even when wealth has been built from the contributions and labor of these very communities, the people most affected are frequently left out of the conversation. I have seen this from Appalachia to the Mississippi Delta to Detroit’s Corktown to the Rocky Mountains.
Why Equity and Resourcing Inclusive Communities Must Be at the Heart of Philanthropy
Although many funders and donors have good intentions, a disconnect remains when assumptions replace genuine understanding. When grantmaking is guided by external priorities rather than local needs, it can unintentionally do more harm than good by misdirecting resources and overlooking the lived experiences of those on the ground.
That’s why equity must be at the heart of philanthropy. When foundations, individuals, and families commit to listening, learning, and partnering with the full spectrum of the communities they support, real and lasting change becomes possible—and more inclusive for all those involved. Equity-focused giving ensures that resources flow to where they are needed most, empowering those who know their communities best. By centering equity, philanthropy—especially lean funders and donors—can move beyond charity toward true collaboration, creating a future in which everyone has the opportunity to thrive and communities are not just recipients of generosity but leaders in their own transformation.
Lean Funders Are Built for Times Like These
With federal legislation, funding cuts, and executive branch actions creating turbulence across the nonprofit sector and civil society, lean funders are once more being called to lead—not by reacting with fear but by responding with clarity, courage, and conviction.
Lean funders and donors are rooted in community, grounded in values, and driven by relationships. In 2025, racial equity remains one of the clearest ways for funders to ensure their giving is informed, responsive, and transformative. When funders and donors reflect on the people and places they serve—when they listen deeply and act with intention—they not only meet the moment, they help shape a better future.
Read the full article about inclusive philanthropy by Paul D. Daugherty at Exponent Philanthropy.