Yes, In My Backyard: Lessons in Effective Place-Based Giving

Local giving has long been a philanthropic tradition in the United States. According to the National Center for Family Philanthropy, two in three family foundations focus some giving on a specific geography. In The Bridgespan Group’s experience advising over 50 families in the last 10 years, nearly half of them engage in significant place-based giving. Whether it’s their familial birthplaces, the places where they built their business, or where they raised their families, place is prominent among donors’ priorities.

We also hear from donors a desire to do even more and to become more effective right now. Geopolitical fractures and ruptures in civil society nationally have led some funders to turn toward building community in their own backyards.

“There’s research that shows people feel connected to community when they know their neighbors, when they’re working together and building relationships,” says Molly Talbot-Metz, president and CEO of the Mary Black Foundation, which focuses on improving the health and well-being of the people and communities of Spartanburg County, South Carolina. “When people are feeling so divided and frustrated, there is a real role for place-based funders in helping people re-engage.”

Donors often seek advice from Bridgespan on shifting from reactive giving scattered across their communities to giving that leads to lasting local impact. While there is no one “right way” to give, our work has taught us that if you want to drive results on pressing issues facing families and communities, it’s critical to understand the social and economic disparities—and assets—in a place. These are the basics of effective giving. As you’ll see in the examples below, we’ve also learned that two things are critical for sustained impact: nurturing enduring, trusting local relationships and adopting a generational mindset.

Individual donors and family foundations are nimble, able to respond quickly to emerging needs and opportunities, and to shift course as they engage with communities. That’s particularly valuable in relationship-driven work. They often have a greater appetite for risk and can make long-term, multi-generational commitments to a place, independent of a particular government funding cycle or administration. They also have a uniquely keen sense of local responsibility, grounded in local knowledge and networks, which includes relationships with local and state government agencies. Those relationships are an asset that can ease collaboration.

In our work, we’ve observed common patterns in place-based giving. While it takes all types of public and private funders to effect change in a place, we explore four approaches below and offer examples of funders who have leaned into these unique strengths to drive real impact in their own communities.1 Funders may adopt one or more of these approaches—and others—at the same time.

Start with what you know—then go deeper with what works

Many donors choose to deepen their investment in an issue area, organization, or population they already know well. Starting with what you know first often helps shape long-term strategies. A donor can identify adjacent areas of impact while learning alongside a community. Often, what’s most effective is doing more of what’s already working, building on existing local relationships, and pursuing work that you’re emotionally connected to.

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Bridgespan Group
Lauren Shaughnessy, Lauren Hult, Vivek Raman, Zach Slobig