Across Europe today, inequality is a central, structural and deeply embedded issue that cuts across income, geography and age, as well as gender, race and other identities.
The impact of inequality
Inequality has far-reaching consequences that extend well beyond individual hardship: It affects the health, stability and resilience of entire societies.
When wealth and opportunity are concentrated in the hands of a few, consumer spending slows, economic systems become fragile, and volatility increases. Countries with high levels of inequality are more prone to financial crises and slower economic recovery. In other words, inequality doesn’t just hurt the poor; it destabilises economies, undermines confidence, contributes to democratic backsliding, and leaves everyone more vulnerable, from the small business owner to the corporate executive.
Why we use the word “equality”
We know that words like equality, equity, and justice carry different meanings.
We use “equality” as a framework here because it’s a familiar term which offers a good starting point. But we also see its limits. It means giving the same thing to everyone despite their diverse needs. Real change means moving beyond equal treatment toward equitable support and justice that addresses the root causes of inequality.
Equality is where we begin. Justice is where we’re headed.
A framework for philanthropy to act
Across our network, many philanthropic organisations are already engaging with issues of equality, power, justice and inclusion in thoughtful and meaningful ways. This framework builds on those efforts, offering a shared space for reflection, alignment and collective progress.
Rather than presenting a single, definitive or prescriptive stance, the framework provides a broad and flexible lens on the relationship between philanthropy and equality. It highlights how inequality is deeply connected to power structures, climate justice, democratic practice, and how it is deeply entangled with philanthropy’s history, funding models, operating practices and legitimacy. Though the framework focuses on equality, some elements within it centre the concept of equity.
The framework invites philanthropic organisations at different stages of this journey to explore four key areas of practice: internal practices, relational approaches, redistribution of capital, and systems thinking.
The four areas are not separate boxes: They overlap in practice, showing how change in one area can ripple into others. The structure offers flexibility and different entry points for this work, acknowledging that different funders are at different stages, thereby allowing them to enter the conversation in ways that match their context. It’s designed to be broad, reflective, and action-oriented, not prescriptive.
How to use the framework
By offering a shared language, a big-picture view and practical starting points for action, this framework enables funders to:
- Start discussions within their boards, teams and networks.
- Reflect on how their organisations work and give, and how they align their values and actions.
- Create actionable steps for tackling this important work internally and externally.
At the heart of this framework is a shared goal: more equality. Around that, we’ve identified four broad and interconnected sets of good practices foundations should adopt on this journey.
Equality-centred internal foundation practices
- Critical reflecting on philanthropic power, privilege and prevailing norms and assessing how philanthropy may inadvertently reinforce inequality
- Advancing diversity, equality, inclusion and belonging in philanthropy by building diverse leadership, gathering DEI data, and fostering a culture where all voices, especially those with lived experience, are heard, respected, and empowered to shape decisions.
- Adopting more decentralised decision-making and governance mechanisms and creating new structures to bring in previously unheard voices and enable staff and others across the organisation to play a greater role in decision-making
- Applying equity lenses to foundation operations and processes by regularly reviewing and updating internal policies and operational practices to ensure consistency with commitments to equity, transparency and respect.
- Auditing grantmaking processes to identify and address systemic barriers in grantmaking and create more transparent, fair, and inclusive funding processes.
Redistribution of capital
- Providing flexible and differentiated funding, such as unrestricted grants, giving circles, flow funding, direct support to individuals, and strengthening partners’ asset bases through property ownership or endowments to enhance community self-determination, foster innovation, and build long-term autonomy and sustainability.
- Supporting marginalised groups who are expected to lead the fight against systemic injustice but often lack the trust, resources, and support needed, by investing more in organisations led by those communities, valuing cultural knowledge and community connections, embracing flexibility and sustained support, and applying an intersectional lens to recognise the diverse and compounded barriers different groups face
- Building assets by investing in community-owned and governed resources to strengthen the self-determination and long-term resilience of historically excluded communities.
- Exploring spending down/out strategies to deploy philanthropic capital more rapidly and flexibly, enabling long-term, unrestricted support that accelerates systemic change, redistributes wealth, and strengthens community-led organisations advancing equality.
Relational approaches
- Shifting to trust-based philanthropy which is based on practices of building mutual trust, learning, and accountability between funders and grantees through multi-year, unrestricted funding, streamlined processes, and shared responsibility, and empowering frontline organisations to lead with autonomy.
- Promoting localisation and proximity by shifting resources closer to local communities, centring their knowledge and priorities through community philanthropy and intermediaries who build trust, provide tailored support, and amplify grassroots voices to address systemic inequalities.
- Providing organisational development support to help grantee partners strengthen their abilities, nurture their strength, and sustain their work, enabling them to overcome challenges, honour their identity, and address social inequalities on their own terms.
- Embracing participatory philanthropy, with participatory grantmaking as a prominent example where decision-making power is shared with community representatives, also including applying these principles to other areas such as governance, evaluation, and collaborative strategy development, all tailored to different contexts and goals.
- Shifting to equity-centred approaches that value mutual accountability, prioritise shared learning and adaptation, community-defined impact, challenge power imbalances, and are tailored to local contexts and lived experiences, moving behind rigid, compliance-focused practices.
Applying systems lenses
- Leveraging influence on policies, institutions and practices by funding and partnering with grantees who lead policy reforms and advocacy addressing systemic inequalities.
- Shifting norms and narratives and challenging harmful societal beliefs by funding media, research, and storytellers that expose truths, confront stereotypes, and promote narratives grounded in justice and equality.
- Building structural power by investing in grassroots organisations and movements that challenge unjust systems and enhance political participation among historically disenfranchised communities.
- Using an ecosystem approach by collaborating with diverse actors, strengthening collective infrastructure, supporting cross-movement coalitions, and partnering with equality bodies and Public-Private-Philanthropic Partnerships
Foundational principles behind this framework
Equality benefits society as a whole, equality work is for everyone and is a collective endeavour
Inequalities are interconnected, multidimensional and complex
Power is relational and dynamic
Social change is nonlinear and ongoing
True progress is driven by authenticity and humility, and demands holistic approaches
Explore more
We hope this framework will serve as a useful guide for thinking, reflective conversations and action. This executive summary is built on a broader concept paper that includes an expanded background section on inequality in Europe; a detailed examination of this framework and its components; and examples from our membership and beyond of steps philanthropy is taking to reflect, act and shift.
