A community-based organisation or a non-profit organisation is more likely to be closer to the communities, its development issues and have a deeper understanding about the types of interventions that are required. The ultimate beneficiaries of the grant, or the community directly affected, have assets, knowledge and resources that can be identified and mobilized. They should drive the development process. This is a development approach called asset based community development
It’s a valuable principle for philanthropists to respect the agency of those they seek to assist and to be humble in their approach to donating funds. Philanthropists have limited power to change the system on their own, as well as limited resources (both financial and human) and experience and knowledge
With that said, donors have a right to hold the grantees accountable and to apply a professional approach in dealing with donees and others. An identified need is not in itself sufficient motivation to provide funding. A poorly conceptualized and badly executed project could cause just as much harm as good and the philanthropist should only consider investing in a well-run, responsive organisation.
Arguably, an NGO’s ability to manage its relationship with its funder is an indicator of its overall efficiency and effectiveness and therefore high standards of accountability should be present in the relationship between the donor and donee.