Building Strong State-Philanthropic Partnerships: Legal Insights and Engagement Strategies

Governors are increasingly engaging and partnering with philanthropy to enhance state capacity, support innovation, and advance policy priorities across a range of areas, including workforce development, education, public health, emergency response and other policy domains. These collaborations often focus on identifying priorities, sharing information, targeting needs and coordinating efforts to address resource or capacity gaps.

Government and philanthropy each bring distinct strengths-public authority and infrastructure on one hand, and flexible capital, expertise, and networks on the other-that can be strategically aligned to maximize the impact of public investments. When pursued intentionally and transparently, these partnerships can foster durable, nonpartisan relationships that strengthen policy implementation and improve outcomes for communities.

Building Infrastructure for Collaboration

Effective partnerships require deliberate coordination and infrastructure. Many states are creating formal mechanisms for engaging philanthropy, such as designating a philanthropic liaison within the Governor's office or establishing a dedicated Office of Strategic Partnerships. These roles serve as a bridge between state agencies and the philanthropic community, ensuring that efforts are aligned, information is shared, and opportunities are pursued strategically. Regular communication-through regular meetings, information exchanges, and statewide philanthropy summits-helps maintain transparency and fosters lasting relationships.

States engage with philanthropy through a range of partnership models, each with its own level of complexity and formality. Financial support models, such as direct grants or co-funding partnerships, enable targeted investments in innovation. Collaborative models, such as coordinated or data-sharing initiatives, emphasize joint planning and shared goals without direct financial transfers. Capacity-building models, like technical assistance or embedded philanthropic fellows, help strengthen state agency expertise and implementation capacity. Understanding and selecting the right model allows states to tailor their approach, manage risks, and maximize the impact of philanthropic resources.

Legal and Governance Considerations

Because these partnerships operate at the intersection of the public and private sectors, clear legal and ethical guardrails are essential. States must comply with statutory and regulatory frameworks that govern the acceptance and use of private funds. Transparency, proper oversight, and clear definitions of roles and responsibilities are key to maintaining public trust. Formal agreements, such as Memoranda of Understanding or grant contracts, help clarify expectations and ensure accountability. Ethics, compliance, conflict-of-interest screening, and proactive disclosure practices protect both government and philanthropic partners from real or perceived influence concerns.

Driving Impact and Ensuring Lasting Partnerships

Philanthropic partnerships represent a valuable tool in a Governor's policy and operational toolbox, particularly when public budgets are constrained and innovation is needed. Effective state-philanthropic partnerships thrive on trust, shared purpose, and consistent communication. Success depends on strong leadership from both government and philanthropy-leaders who can align visions, bridge organizational cultures, and champion collaboration across sectors.

Philanthropic organizations also value relationships that go beyond financial transactions, and seek to contribute strategic insight, research capacity, and deep community relationships that help governments design and implement more responsive policies. For example, in times of crisis, philanthropy's ability to mobilize flexible, fast-acting resources can complement state and federal aid, filling urgent gaps and accelerating recovery for communities in need. When both sides view one another as thought partners rather than funders or grantees, collaboration becomes more dynamic, creative, and results-oriented.

By cultivating durable relationships and planning for sustainability from the outset, Governors can ensure that partnerships not only spark innovation but also leave a lasting foundation for future progress. When pursued thoughtfully, these collaborations help states address complex challenges, improve service delivery, and build stronger, more resilient communities for the long term.

NGA holds monthly briefings for Governors' legal counsel. Please reach out to Lauren Dedon ([email protected]) for additional information.