How to maximise impact through improved funder-grantee relationships

In traditional grantmaking, the relationship between funders and grantees is often superficial in nature—often more transactional than a relationship at all. Traditionally, grantees apply for grants from funders, and funders, in turn, select applicants, and grant them allocated funds. While this form of grantmaking isn’t wrong—and has long been the standard—it isn’t always the most effective or equitable approach to creating holistic, sustainable impact.

Reimagining the relationship between funders and their grantees, however, can help both funders and their grantees achieve better, longer-lasting outcomes—ones that are built from an equitable partnership of mutual trust and respect.

In this blog, we‘ll explore exactly how improved relationships between funders and grantees can maximise impact and how funders can strengthen these relationships with a few best practices.

How do improved funder-grantee relationships maximise impact?

For foundations that have long been steeped in the traditional grantmaking process, reimagining the funder-grantee relationship can be a bit intimidating—not to mention a little confusing, especially if you don’t understand the benefits.

When relationships in grantmaking are strengthened and become equitable partnerships, instead of hierarchical, they can create more impact through enhanced:

Resilience and sustainability: When grantees feel supported and valued holistically—and like true, trusted partners in the grantmaking process—they are more likely to maintain momentum toward achieving long-term goals, even in the face of obstacles. Equity in grantmaking relationships makes grantees feel like they have a true partner in their mission. 

Trust and alignment: Traditional grantmaking relationships don’t promote unity. Their transactional nature can lead to fragmented efforts, confusion and more. On the other hand, better relationships allow funders and grantees to be aligned on their goals and strategies from the very beginning of the grantmaking process. 

Communication and collaboration: Improved relationships foster better collaboration. When both parties trust and depend on one another, they can be open and transparent with one another, allowing for regular updates, feedback loops and shared learning. This allows communities in need to receive better support and allows funders to be more effective, too, adapting strategies based on real-time information.

Funding: When funders and grantees have established a level of trust, funders often feel more comfortable being flexible with funding (like unrestricted grants or multi-year funding commitments). This empowers grantees, supports capacity building and empowerment and ultimately allows for greater impact.

How to improve grantmaking relationships

There are lots of ways that funders can strengthen their relationships with grantees. While these relationship strategies can differ depending on the organisation and communities at play, there are a few common best practices to keep in mind in order to strengthen these bonds:

Get up close and personal

While digital methods of communication are helpful, they can often feel cold and detached. Take the time to meet grantees face-to-face, attend their events and understand their work firsthand—and not just through applications or reporting. Showing grantees that you want to really understand their needs helps to build a foundation of empathy, trust and genuine care and interest.

Be transparent

Whether you’re creating grant reporting guidelines or application criteria, always be sure to articulate your expectations, be transparent about decision-making processes and communicate reporting requirements. Giving grantees a heads-up about what they should prepare for will create a culture of respect.

Go beyond grantmaking dollars

One of the best ways to show grantees that you care about their communities holistically is to offer support beyond money. Community building, like leadership development or training, for example, helps empower grantees and allows them to understand that you’re invested in their individual growth.

Prioritise partnership

Involve grantees in the very beginning stages of the grantmaking process, like defining goals, assessing progress and measuring and assessing outcomes. This will make grantees feel like an integral part of the process, rather than just one-off grant recipients. 

Promote peer learning

Create opportunities for grantees to connect, share experiences and learn from one another as a way to build capacity. This not only helps grantees build social capital but also promotes long-term sustainability.

Listen actively and responsively

Actively listen to grantees’ perspectives, concerns and ideas through formal and informal channels (phone calls, meetings, site visits, etc.).

Remain responsive

Grantees and their communities are people with changing, adapting needs. To best support them and create lasting relationships, be flexible and adjust funding or support when needed.

Alleviate administrative burdens

Managing grants is often so burdensome for nonprofits that it actually impacts nonprofit staff retention and recruitment. To help nonprofits avoid this, create simple reporting requirements and applications so grantees will feel seen and supported and able to focus on what’s important.

Create stronger grantmaking relationships with Good Grants

A strong grantee-funder relationship is only possible with a foundation of shared trust. If grantees aren’t made to be equal partners, or given the opportunity to participate in the grantmaking process and have their voices heard, the potential of any grant’s impact could be diminished.

With software like Good Grants, grantees and funders can approach the grantmaking process with as much transparency and accountability as possible. From the pre-award award phase all the way to the post-award phase, Good Grants lets funders and grantees remain on the same page, no matter the initiative. 

With crowdvoting for grant applications and simple and customisable grant applications that alleviate administrative burden, grant management software like Good Grants democratises the grantmaking process and makes relationships stronger than ever.