Opinion

Funders, stop viewing your tedious and paternalistic requirements as nonprofit “accountability”

Last week, I was in Toronto facilitating a conversation on equitable grantmaking with a group of brilliant colleagues, including several funders and impact investment leaders. During the rise of authoritarianism, it is vital for funders to understand what’s at stake and to act accordingly.

I reminded the workshop attendees that conservative funders fund five key things: Institutions, politics and politicians, judges and judiciary systems, media and narrative work, and cultural warriors. This is why conservative movements have been running circles around progressives.

But it’s also HOW they fund that makes them effective. I went through this chart, the Equitable Grantmaking Continuum, which anyone here can access. Feel free to print it out and see how your foundation is doing; or if you’re a nonprofit leader or consultant, mail it to your funders, maybe with a severed stuffed unicorn head Godfather-style for particularly egregious ones.

The discussion that ensued was lively. However, one question a colleague asked has been sticking with me. I’m paraphrasing: “Sorry, but what about accountability? I mean, we can all move toward being Level 3 funders on that Continuum and give general operating grants and 20-year investments and so on, but we need to talk outcomes and accountability, eh?” 

This is a question we hear all the time, and I know colleagues who ask it mean well, but it is truly one of the most annoying questions of all time, and I always have to recall a song my kids learned from a children’s show, Daniel Tiger, to help calm myself down when I hear it: “When you feel so mad that you want to roar, take a deep breath, and count to four.”

Here’s why it’s so annoying:

It’s condescending and paternalistic: The assumption behind the question above is that if nonprofits weren’t forced by funders and donors to write detailed proposals, budgets, and reports at regular intervals, if they were granted unrestricted funds, they too would be unrestricted in their actions and would just run amok like feral children, with no aims or goals, and it would just be chaos and madness. It must be up to funders then to be adults to keep an eye out on these organizations.

It’s based on a lack of understanding of how nonprofits operate: Most nonprofits and movements have outcomes they’re working on that are clearly spelled out everywhere, including in grant proposals. Accountability structures are already built into their operations through mechanisms such as annual reports and formal tax filings where they list what goals and outcomes they accomplished and how they spent funding for the year.

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About the author

Vu Le

Vu Le (“voo lay”) is a writer, speaker, vegan, Pisces, and the former Executive Director of RVC, a nonprofit in Seattle that promotes social justice by developing leaders of color, strengthening organizations led by communities of color, and fostering collaboration between diverse communities.

Vu’s passion to make the world better, combined with a low score on the Law School Admission Test, drove him into the field of nonprofit work, where he learned that we should take the work seriously, but not ourselves. There’s tons of humor in the nonprofit world, and someone needs to document it. He is going to do that, with the hope that one day, a TV producer will see how cool and interesting our field is and make a show about nonprofit work, featuring attractive actors attending strategic planning meetings and filing 990 tax forms.

Known for his no-BS approach, irreverent sense of humor, and love of unicorns, Vu has been featured in dozens, if not hundreds, of his own blog posts at NonprofitAF.com.