This article was first published in Alliance Magazine - https://www.alliancemagazine.org/blog/rethinking-philanthropy-what-if-communities-controlled-the-money/
The Wellbeing Protocol combines Māori Indigenous values of localism and collectivism with modern technologies like blockchain and cryptocurrency to fund in a way that is transparent, fast, and community-led. Here’s how they got there.
Right now the global philanthropy sector is grappling with a question as old as giving itself: how do we balance accountability with trust, strategy with community voice, while scaling with local relevance?
At the heart of this tension is a question we rarely ask plainly: why do we still design systems that assume those with money know best?
Across the world, the current infrastructure of giving is characterised by slow-moving, compliance-heavy processes that are designed to prevent misuse of funds but too often prevent their effective use. Application processes are daunting, especially for under-resourced groups. Reporting systems extract stories and data from communities but give little back in terms of real ownership or power. And, despite well-meaning intentions, many philanthropy systems replicate the same top-down power structures as the economic models they often seek to disrupt.
Yet, there are clear signs that communities themselves are not only ready but better placed to make funding decisions about what matters most to their wellbeing and futures. From the mutual aid movements that sprang up during Covid-19 to the community-led climate initiatives that outperform externally imposed solutions, we are seeing proof that local knowledge, trust, and collective action are often the most efficient paths to meaningful change.
What if we designed philanthropy and social welfare around these realities?
From transactional giving to regenerative funding
The concept of a wellbeing economy has gained traction globally, recognising that we need to move beyond GDP and economic growth as the sole measures of success. But realising a wellbeing economy requires us to rethink not only what we fund but how we fund.
The Wellbeing Protocol is one example of a new approach. It is not a programme or a project; it is an attempt to build a public good infrastructure for a wellbeing economy by creating a microgranting system that is transparent, fast, community-led, and designed to rebuild trust. It proposes a simple but radical shift: let communities propose and decide how small grants are spent, using lightweight, transparent technology to remove bureaucracy while maintaining accountability.
The project initially began in Aotearoa, New Zealand, as a government-funded initiative exploring how Māori Indigenous values of localism and collectivism could be combined with modern technology to reimagine the community grant funding systems. It was driven by the belief that mana motuhake (self-determination) and whanaungatanga (connection) are not only cultural principles but powerful design principles for funding systems.
This exploration led to the development of tools that place decision-making power back into the hands of communities while honouring collective processes and shared stewardship of resources.
The technology we now have
One of the reasons this is possible now is the evolution of decentralisation technology. Modern Web3 technologies give us, for the first time in human history, the infrastructure to build digital systems that are truly incorruptible, transparent, and efficient. Blockchain-based tools allow for transparent tracking of funds, new governance and decision processes, and automated payments that are immutable, accountable and cost-effective.
These tools enable funders, local community development organisations and communities to participate with confidence, knowing that decisions will be honoured, funds will be used as agreed, and the process will remain fair and open. Technology, when aligned with indigenous values and local priorities, becomes an enabler for collective action at scale.
The Frome example: Why social connection matters
The small town of Frome in Somerset, UK, has become well-known for demonstrating how social connection can transform community health outcomes. By focusing on strengthening networks of care and reducing isolation, Frome achieved a significant reduction in emergency hospital admissions. This localised, relational approach did more to improve wellbeing than many large-scale interventions.
The lesson for philanthropy is clear: investing in local capacity and community trust produces outcomes that systems-led approaches struggle to replicate.
What gets in the way?
If the benefits of community-led funding are clear and the technology is now here, why isn’t this approach the norm?
The barriers are largely systemic and cultural. Risk-averse funding models, designed to prevent fraud, often end up creating ‘phantom risks’ that discourage innovation. Reporting systems are geared towards compliance rather than learning, making them extractive rather than generative. Most significantly, there remains a cultural bias within philanthropy and government funding systems that ‘expertise’ is something external to communities, and that control must remain with the funder.
These barriers are not trivial. They are tied to accountability requirements, governance structures, and sometimes legal frameworks. However, if we are serious about building a wellbeing economy, these are precisely the challenges we need to address.
Beyond trust-based philanthropy
The trust-based philanthropy movement has rightly pushed for less burdensome reporting and more flexible, relationship-centred funding. But there is an opportunity to go further.
Imagine a system where:
Money is ‘streamed’ into communities with information feeding back, allowing ‘taps’ to be increased or decreased in real-time
Communities submit and prioritise their own microgrant proposals.
Small grants are distributed directly to individuals quickly, transparently, and with minimal overhead.
Funders can see in real-time where funds go and how projects progress.
Accountability comes from shared visibility and community-led evaluation, not compliance-heavy forms.
Stories are at the centre, shared with the community and funders, building collective learning and acting as a catalyst for additional funding.
This is not a utopian vision. Trials of The Wellbeing Protocol in New Zealand, Australia, and the UK have shown it is practical and effective. The challenge now is scaling these systems, integrating them into funding pipelines, and shifting mindsets to recognise that local communities can and should lead.
A call to philanthropy
Philanthropy stands at a crossroads. It can continue to operate as a system of well-intentioned control, or it can become the catalyst for a new funding infrastructure that prioritises community agency, speed, and regeneration.
This requires funders to take calculated risks, not in the sense of reckless funding, but in trusting communities and letting go of the illusion that complex reporting frameworks prevent harm. It means investing in systems and infrastructure that enable transparent, community-led funding to happen at scale.
Philanthropy has an opportunity to model what a wellbeing economy could look like by influencing how we fund, not just what we fund. Governments will follow once they see the value.
If we believe that thriving communities are the foundation of societal wellbeing, then it is time to align our funding practices with this belief.
What would happen if we shifted from ‘How do we know they will spend it well?’ to ‘How can we build a system where it is inevitable that they will?’
This is the invitation: to build, together, a funding system that is fit for the future we need.
Mark Pascall is a UK born, New Zealand-based social entrepreneur, educator, and community builder dedicated to reimagining how people connect, collaborate, and create positive change.