Has the time come for participatory grantmaking?

The world of philanthropy is constantly changing for the better. New, more equitable practices for funding, like trust-based philanthropy, are helping to steer the social impact sector towards a more sustainable and impactful future — for everyone.

One of the more recent trends, participatory grantmaking, has become essential to organisations all over the world, from small nonprofits to huge for-profit corporations like Airbnb.

In this blog, we’ll cover everything you need to know about this trend and why it’s worth exploring for your grantmaking strategy.

What is participatory grantmaking?

Like trust-based philanthropy, which looks to level the playing field between grantmakers and grantees, participatory grantmaking involves the same core principles and ethos.

In essence, participatory grantmaking is an approach to philanthropy and grant distribution that invites funders and grantees to decide together what the community needs are, what the grant application might look like, and how it will be awarded. Instead of grantmakers operating in a silo, and doing their best to assess from afar how to best allocate funds, participatory grantmaking involves community members in decision-making. Like trust-based philanthropy, this approach aims to reimagine the traditional top-down decision-making in grant funding.

While the participatory grantmaking model might look different for every foundation, this practice typically helps community foundations promote:

Inclusivity: Target beneficiaries are actively involved in the decision-making process related to grant allocation. This can involve things like voting, deliberation or general open lines of communication with funders about the decision process.

Empowerment: By involving grantees in the decision-making process, funders can provide a sense of ownership and control over the projects. For communities that have long been marginalised and silenced, participatory grantmaking can foster agency and self-determination.

Transparency: Fundamental to participatory grantmaking is the ability to maintain open lines of honest communication throughout the grant funding process. From establishing requirements to reviewing proposals, all information is accessible to involved parties so that everyone is operating with the same knowledge.

What are the benefits of participatory grantmaking?

While participatory grantmaking, for some, might seem like a lot of effort as it requires involving more stakeholders in the grant lifecycle, the benefits far outweigh any burdens.

If executed well, participatory grantmaking can:

Foster trust-based philanthropy: For organisations that want to make trust-based philanthropy a fundamental part of their grantmaking, participatory grantmaking helps rectify traditional power dynamics and build more sustainable relationships.

Amplify marginalised voices: Historically marginalised communities can be given autonomy, ownership and a voice in their funding. For groups that have long been diminished or overlooked, this is an enormous benefit.

Create more impact: By involving beneficiaries in decision-making, participatory grantmaking ensures that funded initiatives are more responsive to local needs and contexts. Plus, the practice encourages innovative ideas and approaches by tapping into the knowledge, insights and creativity of diverse stakeholders.

How to implement participatory grantmaking in 5 steps

1. Ensure organisational buy-in and make a commitment

When establishing participatory grantmaking at your foundation for the first time, it’s essential to get everyone at your organisation and within your community on the same page.

Discuss the benefits and necessity of the practice, and how it aligns with your mission and goals. And, of course, get support and approval from leadership, if necessary.

Plus, be sure to incorporate the principles of participatory grantmaking right from the get-go: inform beneficiaries, too, of what they can expect and explain the importance of creating inclusive spaces for dialogue, collaboration and decision-making.

2. Build relationships with trust

Participatory grantmaking is not effective if the relationship between funders and grantees lacks trust.

To establish authentic partnerships with grantees, be sure to:

Establish open channels of communication: Encourage regular dialogue, provide multiple communication channels (such as email, phone and in-person meetings), and be responsive to inquiries and concerns.

Use active listening skills: Demonstrate empathy, respect and genuine interest in understanding their perspectives, needs and challenges. Create opportunities for grantees to share their experiences, insights and feedback, and remember that grantees are the experts in their communities.

Clarify expectations: Ensure that grantees have a clear understanding of mutually agreed upon grant objectives, typical reporting requirements, timelines and any other relevant terms and conditions.

Be flexible: Grantees may encounter challenges and unforeseen circumstances during the grant period. Be responsive in addressing their needs and adapting grant requirements or timelines as necessary.

Build personal connections: Take the time to build personal connections and relationships with grantees beyond the formal grant process. Attend grantee events, visit project sites and engage in informal conversations to develop rapport and trust.

3. Use transparent techniques and tools

One of the most important parts of participatory grantmaking is ensuring that beneficiaries understand and have insight into every step of the process.

With the right grant management software, foundations can give beneficiaries a transparent view of mutually agreed-upon deadlines, decision-making processes and more. It can allow grantees to feel like equal partners, rather than just applicants or recipients.

4. Seek feedback and grow

In order to make participatory grantmaking successful and sustainable, actively seek feedback from grantees on their experiences with the grant process and the foundation’s support.

This feedback is essential for identifying areas for improvement and making adjustments to grantmaking practices.

5. Celebrate successes

While you’re sure to come across a fair amount of setbacks and challenges, don’t forget to acknowledge progress — no matter how small.

Recognise grantee contributions, milestones and impact through public acknowledgements, awards and publicity. Celebrating successes strengthens relationships and reinforces mutual appreciation and respect.

Shifting power and resources to the community

Lots of foundations recognise the need for participatory grantmaking. But, without the right tools, foundations and grantmakers often struggle with connecting with beneficiaries and providing transparency around decision-making at scale.

With these tips above, any grantmaker can make participatory grantmaking work, all to drive more impact and tap into the knowledge and creativity of the foundation’s diverse stakeholders.