Nonprofits, Trust, and Fussiness | May 2023
“A period of intense fussiness always happens before growth; there is a process of change, and then we arrive at joy.” -Amanda Litman, Co-Founder & Executive Director, Run for Something, at the Arts Funders Forum Remake the Model conversation, May 9
Truer words, perhaps not. We are in a period of fussiness, indeed. As we strive to reconfigure and recalibrate many facets of contemporary society, we can get uncomfortable, confused, and disoriented. But we can simultaneously choose optimism… because if we stay grounded and do the work, on the other side can indeed be JOY.
I’ve been meditating on two connected studies that illustrate such fussiness; they can be instructive to identify a path forward:
A NONPROFIT IS WHAT, EXACTLY? A new study by the Lilly Family School of Philanthropy at IUPUI — the first comprehensive poll to measure public attitudes on foundations and nonprofits — indicates that Americans “do not know much about the philanthropic sector, nor are they aware of many nonprofit entities or the rules that govern their activities.” The study notes that while “charitable organizations are more trusted than businesses, governments, and the news media”, Americans have little awareness about charities, and exhibit a “pessimism about the ability of charities to make a positive difference in the world.” Additionally, 48% “think that nonprofits are on the wrong track”, and only a third "believe charities contribute a lot to society.”
SO, ARE THERE STILL ORGANIZATIONS IN THE PUBLIC TRUST? Based on the above study, it is not surprising that the 2022 Trust in Civil Society report by Independent Sector notes that roughly (only) 56% of Americans trust nonprofits, capping off a downward trend during the pandemic. Women’s trust in nonprofits declined by 5 points since 2020, and GenZ is “skeptical of the sector”, favoring peer to peer giving and direct individual support over organizational philanthropy. If public trust is the engine of the sector, what does this mean for the future of nonprofit philanthropy? It is prescriptive to note that report shows integrity and purpose are critical to trust: “Public figure endorsements, communicating clear organizational mission, and demonstrating results remain top trust drivers.”
IF PHILANTHROPY IS THE NEW POLITICS, AND ART IS INHERENTLY POLITICAL, THEN WHY ARE THE POLITICALLY ENGAGED NOT MORE PHILANTHROPIC IN THE ARTS? Our culture uses giving as a way to shape policy (see: Bloomberg, Koch, Soros, Adelson, etc.). Young donors and advocates, who are politically engaged and say they desperately want to change the system, can do so through philanthropy and by participating in the governance of our institutions and structures. So where’s the disconnect? Why aren’t they giving more? Why are they not engaged in governance? While they prioritize other philanthropic areas perceived as having greater impact, the the arts offer a massive opportunity for next gen investment and reimagining required to upend our systems: as the first two studies indicate, the potential exists in deepening direct artist and changemaker support, connecting people with each other via a creative support network, the capitalization of new models (LLC, 501(c)4, hybrid, etc), and in impact and human-focused storytelling to build trust and relevance.
This all brings me back to the recent Arts Funders Forum Remake the Model conversation I hosted and moderated. As the panelists brilliantly said:
“Philanthropy does not have to move slowly — be entrepreneurial, trust your partners.”
“Telling the story of impact is as important as the impactful work itself.”
“Art is intersectional to movement building.”