Accountability, equity and inclusion in philanthropy

Please note: This article does not constitute advice. Barclays Private Bank does not endorse any of the companies or individuals referenced in this article.

While philanthropists have the privilege to drive positive change, this position also carries immense responsibility. 

It’s therefore important that donors hold themselves to high standards. Often, this involves self-reflection, asking difficult questions and being willing to listen to the perspectives of others.  

However challenging this may be, it is important work – particularly if you seek to collaborate with others to create meaningful and lasting social change.

Accountability and demonstrating a benefit for society 

A frequent challenge to philanthropy is that it lacks accountability and transparency, and places disproportionate influence in the hands of a few wealthy individuals. In recent years, however, there has been a shift towards more open practices. These are seen as particularly important within a democratic society. 

In many jurisdictions, individuals or foundations receive tax incentives for their philanthropy. This creates an explicit or implicit obligation to prove that they are providing a benefit to society. 

There is also an opportunity to go beyond basic requirements to show how philanthropy meets the needs of those it serves. Even without tax incentives, many societies expect some level of information to be available to the public. Examples of the information philanthropists may be expected to share include (but are not limited to) context on decision-making and information on hiring.

The benefits of transparency  

More open philanthropy has many benefits, including increased data on where philanthropic funds are directed, and enabling others to take more informed approaches. For some, however, the desire for privacy may override external calls for public disclosure, leading them to communicate very little with the outside world. 

There are no simple answers when deciding how open you should be with your giving. However, you may wish to consider the following: 

• Which groups and communities are affected by your decisions? To what extent might greater accountability help you to build trust with these individuals and be guided by their perspectives?
• Could other organisations pursuing similar goals benefit from additional transparency on your part? For example, could you share lessons learned or information about your giving, to help coordinate funding to the areas that need it most? 
• Could greater openness help you achieve your goals more efficiently? For example, could being clear about your intentions, including what you will and will not fund (and why), improve the relevance of the funding requests you receive and reduce the time (cost) burden on applicants? 
• Are you willing to invite constructive challenge from others with experience in your chosen field? What might be the cost of not holding yourself to account in this manner? 

Asking questions about equity

Many of us are familiar with the term ‘equality’, which is about ensuring individuals across society have access to the same opportunities. The term ‘equity’ recognises that all individuals start from different places. What it will take to create equality is, therefore, different. 

Given the privileged access that donors have to opportunities and resources, many feel that it is imperative that philanthropy works towards greater social equity.

If you are interested in this issue, consider these practices: 

• Become aware. Acknowledge your privileges and power, and consider whether your actions may have (inadvertently) reinforced social inequities.
• Learn from organisations that are doing their part to advance social equity and that work to address root causes, not just symptoms.
• Be willing to support smaller, community-based organisations beyond your immediate network.
• Take small steps and assume an open, learning mindset.

See our chapter How donors can turn plans into action for more on power dynamics in philanthropy. 

A broad mix of perspectives

Diversity and inclusion are the practices of providing opportunities for a broad mix of people and including a range of perspectives, ideas and experiences in philanthropic decision-making. Consciously celebrating difference and appreciating respectful challenge can inform ideas, build trust and help to develop comprehensive insights, grounded in real-world experience.  

This really matters in philanthropy. 

Taking this approach can help to ensure sound giving choices, relevance of solutions, and the avoidance of blind spots. These can occur when people making decisions are removed from the reality of those affected by them.  

Some questions to consider include:

• How well do you really know the communities you serve, and their needs? 
• Whose voices are at the decision-making table?
• How do you recognise and value differences of opinion, experience and perspective? 
• Do the people around you feel safe to share their views? How may unequal power dynamics have affected the relationships you’ve built?

Soliciting a diverse range of perspectives may seem time-consuming. However, this needs to be weighed against the potential cost of missing a vital piece of the puzzle. When you gather information thoughtfully, with respect and an open mind, your decisions often gain wider buy-in. Such buy-in may be essential to achieving your goals.

As accountability, equity and inclusion are extremely complex topics, it would not be possible to cover them in great detail within this Guide. However, other valuable resources and examples are available if you would like to learn more.

Case study

Lily Lewis: Putting accountability at the heart of philanthropy 

Lily Lewis, founder and Managing Director of grant-giving organisation The Pocressi Initiative, discusses her efforts to embed accountability into her philanthropy. She is a trained psychotherapist and much of her work focuses on addiction and youth violence.

Holding myself accountable and constantly questioning my privilege are the most effective ways that I can have an impact with my grant-making. 

By following these five rules, I believe I can help bring the right people to the decision-making table. 

1. Find unlikely advisers/board members with diverse perspectives 
   The best advisers I have found are community leaders, policy changers and researchers. Find that brilliant, unlikely person who has lived experience of the issue you want to address.
   
   Ask them to recommend what you should be funding and who else you should be meeting. If these people aren’t pointing out your bad practices, you aren’t getting opportunities to do better. 

2. Pay people for their time 
   Asking someone for a meeting to learn from them may feel well-meaning. However, it’s not mutually beneficial, unless you end up funding them. This leads to burnout for talented people. As philanthropists, we have the power to raise the bar with how we respect and care for people’s time. 
   
   

3. Redefine fulfilment 
   Often, the areas we seek to fund are linked to personal experience. We unconsciously look for the approval of advisers/charities to validate our ideas. 

   Contributing to sustainable change doesn’t always feel fulfilling. It often means giving unrestricted grants and stepping back. You don’t usually ‘see’ returns within the first few years. Work hard to let your grantees know you’re here to stay. 

4. Build an accountability community 
   Learning about the complexity of the areas you seek to change can be draining. Creating accountability check-ins with other philanthropists can help ensure you are doing the things you set out to do. 

   The most meaningful spaces I have found are those where I have been able to reflect on my relationship with privilege and power. The more time I put into this journey, the better placed I am to make decisions on how to use my position.

   The most underfunded issue is structural and systematic racism. Black people and people of colour, especially women, disabled people and trans people, are most at risk of experiencing disadvantage and poverty. The statistics speak for themselves¹. 

   As a funder (who is also white), I must work through a racial justice lens if I want to have the biggest impact. At least 80% of my charity partners have a majority non-white leadership team. 

5. Set an amount you will give away per year and stick to it  
   You will make mistakes and partnerships won’t work out. The more time, however, you invest in your own learning, the more impactful your support and grants will be. Good practice takes time and messiness.  

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