As humanitarian needs surge and global development priorities escalate, trust has become the critical priority in forging effective partnerships to meet these challenges. The United Nations reported in 2023 that ‘360 million people worldwide need humanitarian assistance – a 30 percent increase since the previous year. More than 110 million people have been displaced, and over 260 million face acute food insecurity, with some on the brink of famine.’ Meeting these unprecedented needs requires collaboration rooted in trust between funders, grantees, and community stakeholders.

At its core, trust allows effective collaboration, and as the urgency grows, so does the need for funders to build genuine, trust-based relationships with the organisations and communities they support. The traditional model of grantmaking, however, is not built on trust. Instead, it often reflects an asymmetric power dynamic, where funders set strategic priorities, inadequately cover administrative, and impose strict reporting requirements to ‘verify’ the use of funds. This transactional relationship not only burdens grantees but also reinforces historical biases – rooted in colonial, racist, and classist ideologies – that undermine the potential for genuine partnership.

Trust between funders and civil society has yet to be fully realised. To build meaningful and equitable partnerships, funders must recognise the deep expertise and experience that nonprofits and local organisations bring to the table. By listening to and engaging these local voices, funders can accelerate progress toward their shared goals. Trusting these stakeholders as partners – rather than merely beneficiaries – is essential to unlocking locally-driven development.

To strengthen the funder-grantee relationship, trust must be central to every action. Below are three key initiatives that can serve as practical steps toward building trust, fostering accountability, and improving collaboration between funders and civil society:

Funder standards and accountability:

The upcoming launch of the International Non-Profit Accounting Guidance, or INPAG, led by CIPFA and Humentum under the joint initiative IFR4NPO in 2025 offers a transformative opportunity to enhance transparency and consistency in financial reporting, which in turn builds trust. INPAG will:

• Standardise financial assessments, enhancing visibility of financial readiness of organisations.
• Simplify the interpretation of grantee financial data, fostering transparent communication.
• Reduce the administrative burden on organisations, removing unnecessary friction in funder-grantee relationships and reinforcing mutual accountability.
• Funders can support INPAG by joining the donor reference group, adopting INPAG for grantee reporting and providing financial backing for its launch. This approach signals a commitment to trust and shared accountability.

Longer, renewable, and flexible grant agreements: 

Currently, many grant agreements last between one to three years, after which grantees must endure another arduous cycle of proposals and negotiations to secure renewed funding. This short-term approach compromises community engagement and can erode trust at the local level if projects stall or are delayed while new contracts are negotiated. When grantees are seen as pulling back due to funding delays, it can damage their credibility with the communities they serve. By extending grant periods to a minimum of five years and simplifying the renewal process, funders can establish more stable, equitable partnerships. This long-term commitment will build trust, both with grantee organisations and the communities they serve, allowing for deeper engagement and more sustainable outcomes.

Funders must offer longer, renewable, and flexible grant agreements, minimising the administrative burden on grantees and enabling them to focus on their mission. This will foster a relationship based on trust, not bureaucracy.

Due diligence passporting: 

Extensive due diligence processes, often duplicative and time-consuming, can strain funder-grantee relationships and erode trust. Local organisations, in particular, bear the brunt of these demands, which take valuable time and resources away from their core missions. However, models such as the due diligence passporting tool developed by the Charter for Change consortium offer promising alternatives. By streamlining these processes, passporting tools can reduce the burden on organisations and restore trust in the funder-grantee relationship. These tools are still in their early stages but have the potential to standardise and simplify due diligence, creating a more equitable assessment framework.

Funders should commit to due diligence passporting, requiring their grantees and sub-grantees to adopt similar models. This will set a new standard for grantee assessment based on trust, freeing organisations to focus on delivering impact rather than fulfilling redundant compliance tasks.

These initiatives represent just the beginning. Trust is not built overnight but through consistent, intentional actions. As the global development and humanitarian sector evolve, funders must continually demonstrate their willingness to trust and collaborate with civil society partners to address systemic challenges. To achieve locally-led development, funders need to make bold, trust-based investments in local organisations. Visible, tangible actions – such as those outlined above – are essential starting points for building the trust needed to transform the sector and the communities it serves. By centering trust, funders can create lasting partnerships that allow locally-led development to thrive.

Christine Sow is the President and CEO of Humentum. Humentum creates practical solutions to improve finance, people, risk, and compliance processes. Equity, resilience, and accountability are at the centre of our work to strengthen social good organisations for sustainable success.