How better listening can drive impact for grantmakers

As a grantmaker, driving social impact is everything. Without the right information, your philanthropic initiatives can easily veer off in the wrong direction. 

However, paying attention to community members, experts and other stakeholders in the philanthropy sector can drive impact for funding organisations.

The concept of “listening” in the grantmaking process

Listening to all your stakeholders during the grantmaking process means paying attention to the various voices in the community. It involves actively seeking and considering the perspectives, needs, experiences and ideas of potential grantees, community members and experts.

Listening is a pillar of effective grantmaking because it leads to more impactful and sustainable results. It guarantees data-based funding decisions and strong mutually beneficial relationships.

Listening in grantmaking doesn’t stop at merely noting the concerns and views of various stakeholders in the philanthropy sector.

The process should be backed by an eagerness to make adaptations based on what grantmakers discover. Also, it’s important for funding organisations to pay particular attention to the voices of people, potential grantees and communities that are historically marginalised and underrepresented.

This concept of listening in grantmaking is interconnected with trust-based philanthropyas both emphasise open communication and transparency. Both concepts also underscore valuing grantee expertise, flexible decision-making, partnership, equity and inclusion. Similarly, listening shares similarities with participatory grantmaking as both enable target communities to shape and control the funding that addresses their needs.               

5 different ways “listening” can drive impact for grantmakers

1. By identifying actual needs and priorities

Listening drives impact for grantmakers by uncovering the real pain points, aspirations and perspectives of the communities that grantmakers aim to serve. It eliminates assumptions or stereotypes about the communities.

A holistic understanding of the recipients’ realities and underlying challenges helps grantmakers strategically target their efforts towards high-priority needs. The insight further increases the sustainability of the social impact of philanthropic efforts because strategic initiatives are set up to address the root causes of the challenges.

A grasp of the social, cultural and economic context of the various stakeholders ensures that the grantmakers’ efforts are customised accordingly.        

2. By ensuring informed decision-making, relevance and adaptability

Listening involves gathering both qualitative and quantitative data. Actively seeking and working with information collected from different stakeholders ensures that grants are made based on concrete data. Instead of generic approaches, the solutions created are aligned with the specific needs of the stakeholders, driving the impact of the said solutions.

Listening to nonprofits and community members builds flexibility and adaptability in grantmaking. With real-time feedback from these stakeholders, grantmakers can adjust their methods to suit emerging needs, leading to maximum impact.         

3. By promoting equity and inclusion

Valuing and prioritising the voices of a broad range of stakeholders can drive impact for grantmakers. This is because this listening process involves actively engaging with marginalised and underrepresented communities. This can help grantmakers address the systemic inequities that plague traditional philanthropy.

To begin with, listening can help grantmakers understand the root causes of the disparities in target communities. This understanding can prove helpful in designing formulae to combat the inequity. 

Seeking out the voices of all stakeholders also ensures equitable data collection, as every stakeholder’s account is heard. This guarantees equitable distribution of resources which promotes the well-being of previously marginalised and underrepresented communities.        

4. By fostering continuous learning

The open communication channels between grantmakers and other stakeholders in the grantmaking space make for steady feedback. This regular feedback on the effect, success or failures of grantmakers’ initiatives supports a learning cycle for grantmakers. It helps them understand the factors that yield positive results.

Listening drives impact for grantmakers by fostering an experimental approach to philanthropy. As grantmakers continuously polish and refine their strategies based on new insights, their programs will have a much better effect on the recipients.     

5. By building trust and nurturing relationships

Trust and strong relationships form the bedrock of effective philanthropy; they create confidence between grantmakers and other stakeholders, fostering transparency, understanding and commitment. Listening to the concerns of different stakeholders in the grantmaking space lays the foundation for trust and demonstrates the grantmaker’s commitment to understanding the stakeholders’ concerns.

Additionally, the listening process adds a human touch to the relationship between the grantmaker and stakeholders, helping them build rapport. 

The outcome is enhanced collaboration, which leverages the collective strengths of grantmakers and other stakeholders. Also, grantmaker’s initiatives receive greater support and engagement from the different stakeholders. This amplifies the impact of philanthropic endeavours.

Social impact is undoubtedly the aim of every philanthropic effort. The practice of listening will help pave the way for meaningful conversations, engagement and learning—all in an effort to drive impact for grantmakers.