There is a trend being seen in giving and it has a lot to do with stability and being comfortable with a familiar place. “Place-Based Giving” has evolved from a giving philosophy to a primary strategy for some.
It has mainly been driven by unpredictable federal funding, which has made some donors focus on specific areas where they live or are familiar with to some degree.
There has been a surge in funding for local food banks, affordable housing, and mental health services to fill the gaps from the disappearing funding from federal grants.
Place-based giving is shifting the power dynamic from the “donor as the expert” to the “community as the expert.”
More and more foundations are letting local residents decide where the money goes.
In a highly polarized national environment, “place” is becoming a neutral ground.
Recent reports show that donors are more likely to collaborate with people of different political leanings when the goal is a hyper-local outcome, such as “cleaning up our river” or “improving our county’s literacy rates.”
Over 70% of Americans now report higher trust in local institutions over national ones, driving a record amount of capital into Community Foundations and local Donor-Advised Funds (DAFs).