Caitriona Fay explains the shift by donors in determining where their grants flow, highlighted in the latest Giving Australia report.

The latest Giving Australia report indicates that donors see organisational governance and competence as critical factors in determining where their grants flow. Caitriona Fay says this shift includes greater focus on how nonprofits manage their money.

Working in the philanthropic advisory space has given me a front row seat to the changes, some of them subtle and some of them apparent, in what drives donor decision making in giving. An important part of my role is to help the philanthropists I work with feel confident that they’re making good decisions. A component of gaining that confidence focuses on governance and ultimately the organisation’s capability to deliver on its mission.

It’s rare that a philanthropist I work with will ask specifically about governance; rather they’ll ask questions about the quality and experience of the board, the networks the boards possess, the organisation’s track record, and increasingly how that nonprofit manages its resources.

It’s not just the philanthropists I am working with who are focusing on…

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