The Rise of Community Led Philanthropy
Two weeks ago, Alliance Magazine published an article on the importance of local or community led philanthropy - that is assets that have been shaped by local context and culture that are then shared amongst the community. Over the years, community led philanthropy has been on the rise - and will probably continue to be so. This article will delve into the phenomenon, provide some real world examples before giving 4 reasons why it has been on the rise.
What is Community Led Philanthropy?
When thinking of or discussing philanthropy, the first thought that we often have is the millions of dollars worth of funds from large scale foundations being used to support charitable initiatives primarily in global majority countries. Community led philanthropy, however, is the opposite of this. It is an approach to development and giving which places power and decision making in the hands of local communities directly. Its aim is for communities themselves - through their members and local institutions - to find solutions to their challenges, mobilise assets and drive development from within. The concept is part of the broader #shiftthepower movement in philanthropy which advocates for power to be transferred closer to those that are directly affected rather than it staying concentrated amongst external donors or institutions.
Examples of Community Led Philanthropy
Focusing on conflict zones, the Alliance Magazine article gave the example of South Sudan as a pioneer in community led philanthropy. Since gaining independence in 2011, the country has endured cycles of violent conflict and instability. As a result, it has been left with fragile institutions, recurring humanitarian emergencies and millions of internally displaced people. Nevertheless, amidst all this devastation, true community support has been born.
During clashes between rival groups in parts of Unity State (in the north of the country) in 2023, local women’s groups gathered food, soap and blankets from surrounding villages. This was due to the fact that there were no formal relief agencies on the ground at first.
Outside of conflict zones, other examples of community led philanthropy include:
Siyazama Community Food Garden (South Africa)
Located in the KwaZulu-Natal province, this project works to improve food security and promote sustainable farming methods in the community.
It aims to empower people by giving them the knowledge and the tools necessary for productive and sustainable gardening which is locally led.
March for Our Lives (United States)
This is a student led organisation which was born out of protests after a school shooting.
Their first protest occurred in Washington D.C. in March 2018, and had 100s of others throughout the United States and the world.
FASOL, Fondo Accion Solidaria A.C. (Mexico)
Supports grassroots environmental defenders and local activists in rural Mexico.
The fund is managed locally and uses participatory grantmaking, where local leaders review proposals and decide on grants.
The Rise of Community Led Philanthropy
Over the years, the philanthropic landscape has undergone a remarkable shift. Traditional philanthropy is being challenged by that which is community led, a move which reflects a global movement towards equity, local agency and participatory development. In this, donors, activists and communities work to reimagine how change should happen and who should lead it. There are four main reasons which can be attributed to this rise.
Declined levels of trust in traditional institutions
The Generosity Commission’s 2024 Generosity Commission Report found that while overall giving has increased, smaller and community based non-profits have seen declines in donors and volunteers. This reflects a broader erosion of trust towards traditional institutions and philanthropy models. Many donors are also supporting models which are rooted in horizontal relationships and local accountability rather than top down structures.
2. The importance of local expertise and cultural context
The #shiftthepower movement has strengthened calls for transferring decision making power to communities themselves, instead of distant funders. In the UK, wealth distribution is unequal with the richest 10% controlling 43% of the country’s wealth while the poorest 50% control just 9%. The shift towards ‘democratic forms of institutional philanthropy’ can be seen as a more ‘radical form of redistribution’ in which the decision for where wealth goes lies with the majority. As a result, the movement of funds which includes community voices in decision making is more equitable and effective.
3. Growth of of giving circles
Over the years, giving circles have grown explosively - in the US, from 1,600 in 2016 to nearly 4,000 by 2023. This involves around 370,000 members who have collectively donated over $3.1 billion. These groups democratise giving by enabling shared decision making power and a stronger focus on local and small scale organisations.
4. A shift towards equity and impact amongst donors
Some donors - such as institutions and foundations - are no longer satisfied with top down grants and models. Rather, they seek impact first and community aligned funding mechanisms that challenge power imbalances.
Overall, community led philanthropy can be seen as a new way of imagining trust away from institutional giving models. Individuals are seen as powerful agents who can shape their communities rather than passive receivers of charity. As we see more and more changes in global development such as increased conflict and cuts to aid, community led giving may become the future of philanthropy.
Published in Edition 15 of Developmental Insights
