Boosting trust in philanthropy to change the country

Forming alliances for philanthropic purposes aims to promote structural change, with the understanding that unity will solve the problems

By Carola Matarazzo*

I believe that philanthropy represents a powerful tool we have at our disposal for building a more just society. I believe we need coordinated engagement between civil society, businesses, and governments, and that strategic philanthropy is one of the funding paths for the social transformation we aspire to. Amidst the task of establishing partnerships, engaging investors, and increasing social impact, there are differing perspectives on the relationship of trust among members of the philanthropic ecosystem.

One of the first themes we can address is the relationship of trust between civil society organizations and the collaborative ways of forming this link. At this point, we must keep in mind that the world faces complex problems that often require equally complex solutions. These are situations that we cannot change overnight, but that we need to confront by planning and executing strategic and coordinated actions, thinking long-term.

The formation of purpose-driven alliances aims to promote structural change, with the understanding that major challenges will not be solved by just one specific organization. "Unity" and "collaboration" are powerful words, which we could also call collective intelligence.

Trust among Civil Society Organizations (CSOs) has the power to drive flexible and efficient partnerships, reflecting in the activities performed, meaning more people benefiting. And, as the work progresses, one organization also learns from the other, increasing levels of understanding and credibility, making the alliance more solid.

Now, when we look at the relationship with the investor, we must raise a point that, even amidst so many emergency crises, cannot be forgotten: it is essential that the supporter also directs social investment so that each (CSO) can achieve its objective, so that it can strengthen itself, and not be limited to one-off actions. When institutions are supported (and not just their projects), they have a greater chance of growing and innovating, to change the realities of the regions where they operate.

What did we see during the intense cold wave in São Paulo? Many people sought to help projects that provided immediate support to the homeless population. Even after the cold weather passes, solidarity cannot stop. If society consistently supports organizations that aim to promote shelter, housing, health, job creation, and education, for example, we will be on the path to ensuring that, in the future, a one-off blanket distribution project will no longer be necessary.

This trust placed in organizations, which have experience and understand local challenges, to fight for their causes in a structured way, helps to make the third sector much stronger and more resilient, including its ability to act on emergency problems when necessary.

Another issue, when discussing trust in philanthropy, concerns the monitoring of projects, from the initial request from the funded entity to the moment of accountability. The intention that the aid be applied in the best way cannot mean excessive bureaucracy that borders on micromanagement and hinders actions.

Prominent figures in philanthropy, such as Melinda French Gates and Mackenzie Scott, have gained prominence not only for the value of their donations but also for their attitudes and trust-based approaches with partners. They have chosen to allow the organizations they support to make their own decisions about how to use the donations they receive.

In her letter of commitment to The Giving Pledge, Melinda stated that she has always sought to be guided by data and statistics and that she has sought to set goals and evaluate the progress made. However, she stressed that she has learned it is equally important to trust partner organizations and let them define the progress of actions. She went on to point out that "philanthropists generally help the world more when they are behind a movement than when they try to lead one.".

It's clear that you can't talk about trust if you barely know the organization you're going to finance. Reaching this position certainly required a tremendous amount of prior work in establishing an excellent relationship between the parties. A very long road was traveled to achieve such a high level of credibility that would lead the investor to act this way.

Along the same lines, I read a post by Mackenzie Scott in which she emphasizes, first, the confidence she had in the track record of impact and the discernment of the selected teams who worked directly in the communities. Based on this established credibility, she made the donation and then stepped aside from the teams, "encouraging them to spend the money in whatever way they chose.".

To arrive at this format, there was no magic involved, but rather a great deal of hard work from social organizations. Therefore, we cannot create myths around this proposal. I believe that the greater the Brazilian society's awareness of the serious and transparent work carried out by institutions in the country, the greater the trust that will be gained. This is a path to follow.

Carola Matarazzo is the executive director of the Bem Maior Movement

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Article published on the Exame's Bússola Platform on June 29, 2022: check it out here.