What's Happening?
Susan Crown, through the Susan Crown Exchange (SCE), is advocating for an 'exchange philosophy' in philanthropy, aiming to redefine the traditional power dynamics between funders and grantees. Since its founding in 2009, SCE has focused on preparing youth
for a changing world, with grantmaking totaling around $5.4 million in 2024. Its work is concentrated in three main areas: Tech and Society, Social and Emotional Learning, and Youth Sports, including the Million Coaches Challenge, which recently received an additional $2 million in funding. SCE also runs Catalyst Awards for nonprofits outside its core focus. The 'exchange philosophy' emphasizes treating supported organizations as true partners in shared objectives, moving away from a hierarchical funder-grantee relationship. Executive Director Haviland Sharvit developed a 'challenge model' that involves open calls for proposals and convenes grantees, academics, and practitioners to explore issues and add insight to their fields. These convenings are designed to be collaborative and supportive, often scheduled around existing events to minimize inconvenience for nonprofit leaders.
Why It's Important?
This approach to philanthropy is significant because it challenges long-standing norms in the nonprofit sector, where grantees often feel compelled to conform to funder expectations. By fostering a partnership model, SCE aims to empower nonprofits, recognizing their on-the-ground expertise and promoting a more equitable distribution of influence. This can lead to more effective and sustainable solutions, as the organizations directly addressing community needs are given a stronger voice in strategy and implementation. The Million Coaches Challenge, for instance, not only provides funding but also builds a community of peers, facilitating knowledge exchange and collective problem-solving. If widely adopted, this 'exchange philosophy' could transform how philanthropic capital is deployed, potentially increasing the impact of grants and strengthening the capacity of the nonprofit sector as a whole. It also highlights a growing trend within philanthropy towards trust-based giving and a greater focus on systemic change rather than just transactional funding.
What's Next?
The Susan Crown Exchange will continue to implement its challenge model, issuing open calls for initiatives rather than accepting unsolicited applications. This means nonprofits interested in SCE funding will need to monitor these calls and align their work with SCE's specific focus areas. The fund also plans to expand its communities around initiatives beyond its direct grantee cohorts, allowing more organizations to benefit from its research and collaborative efforts. While SCE primarily works with larger, more established nonprofits that have the operational capacity to meet program requirements, it is exploring opportunities to include a mix of organizations, including early-stage nonprofits, particularly in the AI and technology space. The call from SCE's leadership for other philanthropies to adopt similar approaches—emphasizing dialogue, transparency, and reduced bureaucracy—suggests a potential broader movement towards more collaborative and equitable funding practices across the philanthropic landscape.
Beyond the Headlines
The 'exchange philosophy' championed by Susan Crown and SCE touches upon deeper ethical considerations within philanthropy. It questions the inherent power imbalance that often exists when significant wealth is distributed, and seeks to mitigate the potential for funders to inadvertently dictate the direction of social change. By positioning grantees as experts and partners, SCE aims to foster genuine collaboration and mutual respect, which can lead to more innovative and contextually appropriate solutions. However, the observation that SCE tends to work with larger, more financially stable nonprofits raises questions about accessibility for smaller, grassroots organizations that might also benefit from such a partnership model but lack the infrastructure to engage. The long-term success of this philosophy will depend on its ability to not only empower existing organizations but also to create pathways for a broader range of voices and initiatives to participate in and benefit from philanthropic support, ultimately contributing to a more inclusive and impactful social sector.
