Who Benefits? Rethinking Equity in Philanthropic Giving

In philanthropy, charitable intentions are frequently assumed to result in positive consequences. However, both scholars and practitioners are now asking a more intensive question: who benefits? In other words, do our giving practices actually promote equity or unintentionally reinforce existing disparities?

Philanthropy has enormous potential to solve the underlying imbalances in our societies. However, it exists within the same systems. As a result, well-intentioned giving might perpetuate power dynamics, overlook vulnerable populations, or favor donor preferences over actual community needs. Equity in giving is more than just what we give; it is also about how, to whom, and why.

In my own research on social equity budgeting and local governance, I've learned that even public institutions have to grapple with the disparity between equal and equitable. A proportionate distribution indicates that everyone receives the same. Equitable distribution, on the other hand, acknowledges past disadvantages, uneven starting places, and disparities in needs and seeks to compensate for them. Philanthropic organizations face a similar difficulty in that not all recipients have equal access to resources, visibility, or networks. Equity means confronting this imbalance head-on.

The Problem: Giving That Misses the Mark

Too often, funding is disproportionately directed toward large, well-established NGOs with extensive infrastructure and donor relationships, leaving smaller, community-based, and minority-led groups underfunded. These grassroots organizations are frequently closest to the problems the nonprofit organization wants to solve, yet farthest from financial pipelines. Furthermore, decision-making power is usually concentrated with donors, boards, or charitable personnel who may not represent the community they serve. Programs are created "for" communities, not "with" them. In such circumstances, philanthropy risks becoming a top-down effort, with giving guided by preconceptions rather than lived experience.

This is not a criticism of philanthropy; rather, it is a call to reflect. To effectively serve, we need to first listen. To listen effectively, we must be prepared to shift resources and power.

How Can We Do Better?

To advance toward equity, NGOs and funders must be willing to critically look at their own practices. This begins with asking essential questions to determine who has power and who truly benefits. Who do we fund? Are our resources regularly directed to the same large, well-connected organizations, or are we deliberately investing in leaders and groups from historically marginalized communities? Who is making the decisions? Are community members meaningfully involved in determining financial priorities, planning programs, and assessing outcomes, or are these decisions taken without their input? And finally, what does success look like- and who defines it?

Are we adopting community-centered metrics that prioritize connections, trust, and long-term capacity building, or are we focusing simply on numbers and short-term results? Equitable charity is defined as giving differently rather than more. It needs humility, accountability, and a willingness to listen, transfer power, and see communities as active co-creators of change rather than passive beneficiaries.

So, the next time we write a grant, approve a budget, or set a financial plan, let's pause and consider who benefits. And let us be brave enough to respond honestly—and act properly.