Transparency & Open Dialogue Guidelines
Guidelines for fostering open, honest, and respectful communication between funders and for-purpose organisations, and developing transparent funding processes.
Introduction
70% of funders say they are willing to engage with their grantees in open dialogue about general operating support, but only 32% of nonprofits believe they actually are.¹
Open and honest communication is foundational to delivering the full costs of what it takes and being able to ask for what it takes to deliver impactful work. It is critical for building trust and relationships and addressing power imbalances between funders and for-purpose organisations.
To get to trusting relationships, funders and for-purpose organisations often need to be willing to share vulnerabilities with one another in order to navigate challenging situations and collaborate more effectively.
Transparency is essential in establishing trust and ensuring accountability in funding practices. For funders and for-purpose organisations alike, transparency not only clarifies how funds are allocated but also emphasises a commitment to ethical stewardship and effective governance.
A note on transparency
While transparency means being open and honest about important aspects of a funder or for-purpose organisation, it doesn't require revealing everything. There are contexts where too much information can be harmful or counterproductive. For example²:
Foundations working on human rights, domestic violence, and similar topics must carefully choose what information to make public to avoid endangering individuals or organisations.
In societies affected by violence or state oppression, transparency must balance safety, security, and confidentiality.
Providing too much information can overwhelm stakeholders and make it difficult to find what is important and relevant.
Some funders may prefer to remain anonymous due to personal safety, religious beliefs, or other factors.
Probity factors in government contexts.
Full public disclosure in conditions such as the above points may not be feasible or advisable, but transparency should always be considered a priority.
¹ 2023, Grantmakers for Effective Organisations (GEO), Strengthening Relationships
² Worldwide Initiatives for Grantmaker Support (WINGS), Transparency and Accountability in Philanthropy and Private Social InvestmentDefinitions
Open Dialogue
A communication approach that promotes transparency, honesty, and mutual understanding between funders and for-purpose organisations. Open dialogue encourages regular, candid conversations about goals, challenges, and expectations.
Mutual understanding
A shared comprehension and agreement on goals, values, and expectations between funders and for-purpose organisations. Mutual understanding is foundational for building strong, effective partnerships.
Transparency
The state that results from making information available from inside an organisation to a wider public, either through proactive publication or by responding to requests for information³.
Accountability
A readiness to take responsibility for actions, achieved by being transparent about those actions against a predefined framework of values and indicators, and responding to the findings of any evaluation and/or the feedback received from stakeholders⁴.
Why do we need it?
From speaking with Australian funders and for-purpose organisations, and drawing on at global examples, we have seen the following benefits to open dialogue:
Greater trust in funder / for-purpose organisation relationships and partnerships;
Truer sense of for-purpose organisation needs and challenges;
Minimising power imbalances;
Improving alignment and mutual understanding of funding goals; and
Better problem solving by engaging diverse perspectives.
WINGS, a global network of philanthropy development, have named the following benefits to transparency in the funding process⁵:
Engendering trust, confidence, appreciation, and respect.
Demonstrating the positive role funders can play in society, and avoiding harmful and unnecessary criticism.
Demonstrating that funding operations are legal and legitimate.
Bringing a higher degree of humility to funding behaviours, enabling a more equitable balance of power in grantor/grantee relationships, and promoting a mutually supportive and respectful partnership.
Increasing authentic community participation and leadership.
Better partnership communications.
Leverage greater acceptance of funder and for-purpose work and role, in turn encouraging more resources for the causes they are working on from other funders, increasing the potential for greater scale of impact.
Sharing outcomes to promote more learning, cultivate more innovation, and deliver greater effectiveness.
⁵ 2023, Worldwide Initiatives for Grantmaker Support (WINGS), Moving from Reflection to action: Guide on transparency and accountability for philanthropic organisationsWhat it is
Fostering a relationship based on mutual respect and trust.
Both funders and for-purpose organisations see themselves as partners working together towards shared goals.
Providing information to support for-purpose organisations in making informed decisions about funding processes.
Explaining why specific reporting is necessary, helping organisations understand the purpose behind them and offer their own structures where possible.
Disclosing the members of a granting panel, ensuring transparency about representation, including First Nations members.
Creating funding processes that genuinely address the needs and capacities of the sector, ensuring they are practical and relevant.
Promoting transparency to support collaboration and shared learning among all stakeholders, fostering a cooperative funding environment.
Establishing channels to provide feedback and engage in meaningful discussions and active listening.
What it isn’t
Power being concentrated solely in the hands of the funders.
A transactional relationship where communication is limited to compliance and meeting specific objectives.
Keeping the funding processes hidden.
Imposing reporting requirements without explaining their necessity or allowing organisations to provide input on reporting structures where relevant.
Withholding information about the members of a granting panel, including their backgrounds and representation, especially First Nations members.
Designing funding processes that only consider the needs of a funder.
Keeping learning private, including not sharing stories of when things didn’t go to plan.
Ignoring or undervaluing feedback.
Transparency & Open Dialogue in your Organisation
10 Actions for Funders
Integrate transparency and accountability into your organisation's mission, vision, values, and key documents like employee and board handbooks.
Foster a culture that values open dialogue by regularly discussing its importance and encouraging honest conversations in meetings and communications.
Develop a transparency policy that defines what information will be shared externally, with whom, and through what channels.
Regularly provide information about your organisation’s operations, successes, failures, and lessons learned both internally and externally.
Develop and maintain a website that includes detailed information on funding processes, guidelines, and organisational updates.
Design and communicate clear, straightforward funding procedures that reflect an understanding of grantees' capacities and needs.
Set up regular feedback sessions with grantees and act on their input promptly to refine and improve funding practices.
Consider including grantees in relevant decision-making processes, strategy development, and evaluations to ensure their perspectives are heard.
Publicly celebrate successful examples of transparency and open dialogue to reinforce these values within your organisation and the broader community.
Consider participating in the Australian Philanthropic Benchmark to get independently-collected feedback on your organisation's relationships and processes.
10 Actions for For-purpose Organisations
Regularly update your website with detailed information about your organisation’s goals, activities, funding needs, and outcomes.
Share regular and transparent reports on financials, project progress, and impact with funders and partners.
Develop and maintain accessible channels for open communication with funders, including regular updates and feedback opportunities.
Encourage and model transparency within your organisation by openly sharing information and discussing challenges and successes with your team.
Document and share lessons learned from projects, including both successes and areas for improvement, with funders and the broader community.
Organise events or workshops with funders to facilitate shared learning and discussion on topics relevant to both parties.
Schedule regular meetings with stakeholders, including funders, beneficiaries, and community members, to discuss progress, challenges, and future plans, ensuring all voices are heard and considered.
Regularly share stories and testimonials from beneficiaries and community members that highlight the real-world impact of your work, providing funders with tangible examples of outcomes.
Develop and implement a policy that outlines how your organisation will collect, manage, and share data with funders and other stakeholders, ensuring transparency and accountability in data practices.
Establish a structured process for collecting and responding to feedback from all stakeholders, including funders, to continually improve practices and interventions.
Transparency & open dialogue through the funding process
Actions for
Funders
Pre-granting stage:
Transparently share funding priorities, criteria, and decision-making processes on your website.
Application stage:
Clearly communicate funding priorities, eligibility criteria, timelines, and application processes.
Provide detailed instructions on completing the application.
Offer contact information for applicant inquiries and ongoing support.
Selection stage:
Clearly communicate the selection criteria and process to all applicants.
Disclose the makeup of the selection committee, including representation from diverse stakeholders.
Inform all applicants of the outcome, providing constructive feedback where possible.
Funding implementation & management stage:
Hold regular meetings to discuss project progress, challenges, and any changes in scope or objectives.
Maintain open communication channels for grantees to seek guidance and report issues.
Provide templates and support for reporting, and outline reporting requirements and fund use expectations clearly.
Closure stage:
Share summary reports and impact assessments with partners and the public to demonstrate project outcomes.
Maintain relationships with grantees for potential future collaborations and support.
Share how information gathered will inform future funding decisions, ensuring transparency in the process.
Actions for
For-purpose organisations
Pre-granting stage:
Understand and calculate your indirect cost using the Indirect Cost Calculation Guide.
Application stage:
Clearly articulate funding needs and align them with broader organisational goals.
Be upfront about your current financial situation, including other sources of funding and financial challenges.
Engage in discussions with funders to understand their decision-making processes.
Selection stage:
Respond to funder queries and provide additional information as needed.
Discuss any clarifications or adjustments needed based on feedback.
Funding implementation & management stage:
Regularly update funders on project progress and impact.
Be transparent about any challenges or changes in project scope.
Work collaboratively with funders to address any issues that arise during the project.
Closure stage:
Submit final reports detailing project outcomes, impact, learnings, and future plans.
Provide honest, detailed reports on fund usage and impact achieved, and align with feedback on the partnership.
Resources & Inspiration
[Toolkit] GlassPockets, 2022:
[Guide] New Philanthropy Capital (NPC), 2023:
[Report] Centre for Effective Philanthropy (CEP) Ellie Buteau, Ph.D., Jennifer Glickman, Matthew Leiwant, and Charis Loh, 2016:
[Toolkit] Worldwide Initiatives for Grantmaker Support (WINGS):
[Guide] Worldwide Initiatives for Grantmaker Support (WINGS), 2023:
[Guide] Philanthropy New Zealand, 2024:
[Report] The Centre for Effective Philanthropy (CEP), 2020:
[Guide] Community Dialogue, 2020:
[Guide] Humana:
[Guide] S. D. Bechtel, Jr. Foundation, 2020:
[Report] Dorothy A. Johnson Center for Philanthropy, 2022:
[Report] Edward W. Hazen Foundation, 2022:
[Guide] Grantmakers for Effective Organisations (GEO) & Interaction Institute for Social Change (IISC) By J . Courtney Bourns, 2010:
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