#TrustCreatesImpact (#VertrauenMachtWirkung in German) is an initiative led by nearly 40 foundations across the DACHLI region (Germany, Austria, Switzerland, and Liechtenstein), focused on embedding trust as a core principle in philanthropy. This movement emerged in response to growing calls for greater transparency, participation, and inclusivity in how foundations operate and make decisions. It represents a shift from traditional philanthropy models, where foundations often hold the reins in determining how resources are allocated and measured. Instead, #TrustCreatesImpact promotes trust-based approaches that are grounded in mutual trust and cooperation between funders and grantees.
At its heart, #TrustCreatesImpact seeks to address key challenges specific to the German-speaking world’s philanthropic landscape and to provide the sector with a safe space for learning and exchanging best practices. The initiative is driven by the understanding that societal expectations of foundations are changing, particularly in the wake of increasing demands for transparency and accountability. Foundations from German-speaking regions, like their global counterparts, face questions about their legitimacy, their decision-making processes, and their effectiveness. The #TrustCreatesImpact movement addresses these concerns by encouraging foundations to share power, foster participation, and continually reflect on their role in society.
The initiative’s nine guiding considerations[1] provide a clear roadmap for foundations in the DACHLI region, outlining principles that promote cooperation, diversity, and sustainability. These considerations emphasize the importance of collaboration, both internally and externally, to break down traditional hierarchies between funders and grantees. By embedding values such as transparency and inclusivity into their operations, the foundations aim to improve their credibility and social impact.
The #TrustCreatesImpact initiative provides a space for foundations to engage in ongoing dialogue, share knowledge, and collaboratively address the pressing social issues of our time. It is a uniquely German-speaking movement that reflects the region’s philanthropic traditions while introducing innovative practices and creating spaces of learning for foundation staff. By doing so, it represents a significant step forward in the professionalization and evolution of philanthropy in the DACHLI region.
The Birth of the Grants Managing Lab: Addressing a Critical Gap
The Grants Managing Lab was established to address a gap in the DACHLI philanthropic sector: the lack of structured training and professional development opportunities for grants managers and grants administrators.
They play a crucial role in the operational success of foundations, yet their work has historically been undervalued and largely unsupported by formal education. Unlike other sectors where training programs are readily available, the role of grants management has largely been one of learning on the job. This results in complex application processes, unclear communication, and burdensome reporting requirements for grantees due to grants managers and administrators not having the opportunity to reflect on their impact and exchange best practices with peers.
Furthermore, inconsistencies in job titles and descriptions underline the lack of a standardised professional profile and self-image of professionals working with grantees, be it more programme-related or administrative. A predicament especially effecting the German-speaking philanthropic sector, as opposed to Anglo-American philanthropy. This was the insight that spurred the creation of the Grants Managing Lab under the #TrustCreatesImpact umbrella.
Recognizing the need for a dedicated space where grants management staff could exchange ideas and learn best practices, the concept for the Grants Managing Lab was developed, tested in a pilot event in Berlin in November 2023 and set up in early 2024. The Grants Managing Lab workshop series is supported by key foundations in the region, including the Schöpflin Foundation, Mercator Foundation Switzerland, and Crespo Foundation. Its inaugural session was held in June 2024 in Frankfurt am Main, with 30 participants from 23 foundations across Germany, Austria, and Switzerland: This first lab was a resounding success, laying the foundation for future sessions and creating a community of grants managers committed to improving their practices and enhancing their impact.
How the Grants Managing Lab is Transforming Philanthropy
The Grants Managing Lab is designed to professionalize grants management in the DACHLI region, offering a structured space for learning, reflection, and collaboration, respecting the busy everyday working routine of grants managers and administrators. With a focus on practical skills and real-world challenges, the lab provides participants with the tools they need to navigate the complexities of their roles while adhering to the principles of #TrustCreatesImpact. The lab fosters a collaborative environment where participants can share experiences, develop best practices, and build a community of like-minded professionals.
Building a Community for Grants Managers in the DACHLI Region
One of the key goals of the Grants Managing Lab is to create a supportive community for grants managers and administrators across the region. This community is vital because grants managers in the German-speaking world work without access to formal training or networks. Especially grant management staff from small foundations tend to have little possibility for exchange with fellow colleagues. The lab provides a unique opportunity for these professionals to connect with peers from other foundations, share their challenges, and learn from one another:
Networking therefore plays a central role in the lab’s structure: Each lab begins with an informal dinner, giving participants a chance to establish relationships in a relaxed environment before the more intensive learning sessions begin. This focus on relationship-building is reflective of the #TrustCreatesImpact principles, emphasizing trust, transparency, and collaboration.
Practical Workshops and Expert Input
The Grants Managing Lab is designed to be highly practical, with a focus on real-world challenges and solutions. Workshops are structured to address the everyday issues that grants managers face, such as power imbalances between funders and grantees, the complexity of grant applications, and the strain of reporting requirements. Methodologically the Lab draws on its participants knowledge focussing on peer learning sessions and formats. In the inaugural lab, participants engaged in sessions on power-sharing, structural and core funding, as well as collaboration, all of which are critical to improving the effectiveness of grant-making in the region.
The Labs feature expert input and support from international speakers and experts, to bring in perspectives from outside and enlarge the regional network. During the first Lab, Rhodri Davies and Tom Steinberg provided a perspective from the UK. Sharing their insights on strategic philanthropy vs. trust-based philanthropy and the five problems to avoid in your grant management cycle. These sessions provided participants with actionable strategies for implementing more transparent, flexible, and impactful grant-making practices.
Supporting Grants Management to Strengthen the Philanthropic Sector
The Grants Managing Lab, as part of the broader #TrustCreatesImpact initiative, is playing a vital role in shaping the future of philanthropy in the DACHLI region. By providing grants managers and grants administrators with the tools, knowledge, and networks they need to excel in their roles, the lab is helping to professionalize grants management and foster a more transparent, equitable, and impactful philanthropic sector. Through its focus on trust, collaboration, and continuous learning, the Grants Managing Lab is making a lasting contribution to the development of philanthropy, ensuring that foundations remain trusted and effective partners in creating positive social change. As well as contributing on #TrustCreatesImpact’s goal to provide learning spaces for foundations.
Further Information on #TrustCreatesImpact: #VertrauenMachtWirkung – #TrustCreatesImpact (vertrauen-macht-wirkung.de)
Further Information on the Grants Management Labs Serie (in German): #VertrauenMachtWirkung – #VMW Grants Managing Lab (vertrauen-macht-wirkung.de)
[1] #VertrauenMachtWirkung – #TrustCreatesImpact (vertrauen-macht-wirkung.de)