The four types of philanthropic relationships

When these two dimensions are joined, four types of philanthropic relationships emerge (see figure below):

• contractual relationships in which donors and recipients simply give and get under narrowly circumscribed terms and then go their own way
• delegating relationships in which donors delegate responsibility freely to those doing the work
• auditing relationships in which trust is low and oversight is extensive so as to monitor the precise use of grant funds;
• collaborative relationships in which the two sides work together closely to achieve a set of mutually agreed upon goals.


Forms of Philanthropic Relationships

What do these different engagement strategies look like in practice? When writer James Michener came to Texas in the early 1980s to research the novel he was writing that would eventually bear the state’s name as its title, he was given tours of the biggest ranches, an office at the University of Texas, and special attention from the governor. Michener came to love the state and bought a house in Austin.

He volunteered, in his words, as a “teaching assistant” in the graduate fiction workshops at the university. Michener worked closely with students, commenting on their work, encouraging when necessary, and giving them career advice. In 1988, he gave $1 million to create an interdisciplinary master of fine arts degree at the university, which would provide students with training in fiction writing, poetry, playwriting, and screenwriting. The goal of the programs was to develop multi-dimensional graduates who could work across a range of writing professions.

Michener was not an absentee donor. Instead, he worked with the students and helped set the direction for the center. Within a couple of years, he made another gift of $3 million, followed by a $15 million contribution to fully fund the new Texas Center for Writers, including fellowships for writing students. Michener was very involved with the program until his death in 1997.

Collaborative relationships involve not only the gift of money but work together based on shared values and mutual interests.