What Is Participatory Grantmaking?
Participatory grantmaking is an approach in which people who are most affected by the issues a fund addresses are actively involved in deciding how that funding is distributed. Rather than decisions resting solely with trustees or programme officers, communities and beneficiaries take on meaningful roles in grant panels, advisory groups, and decision-making processes.
The approach challenges a long-standing dynamic in philanthropy: that those with financial resources are best placed to decide where those resources go. Participatory models argue that local knowledge, lived experience, and community insight are equally — if not more — valuable in directing funds effectively.
Why Is It Gaining Traction?
Interest in participatory grantmaking has grown significantly in recent years, driven by broader conversations about equity, power, and accountability in the charitable sector. Funders are increasingly asking themselves whether traditional models — where professionals assess applications from behind desks — are really the most effective way to deploy resources.
Several factors have contributed to this shift:
- Trust deficit: Communities have sometimes felt that funders don't understand their realities, leading to well-intentioned but poorly targeted grants.
- Accountability demands: Donors, public bodies, and beneficiaries are asking harder questions about who makes decisions and why.
- Evidence of effectiveness: Early participatory programmes have shown strong outcomes, with funded projects demonstrating high relevance and community ownership.
How It Works in Practice
Participatory grantmaking takes many forms, and there is no single "correct" model. Common approaches include:
- Community grant panels: Local residents sit alongside (or in place of) foundation staff to assess and decide on applications.
- Peer review: Applicant organisations review each other's applications and provide recommendations.
- Community-led funds: A pool of money is handed directly to a community group to manage and distribute according to locally determined priorities.
- Co-design of criteria: Communities help shape what a funding programme looks for before any applications are opened.
Challenges and Honest Considerations
Participatory grantmaking is not without its complications. Funders considering this approach should think carefully about:
- Representation: Who counts as "the community"? Ensuring diverse voices are included — not just the most organised or vocal — requires deliberate effort.
- Conflicts of interest: Peer reviewers or panel members may have relationships with applicants. Clear governance protocols are essential.
- Capacity and support: Community participants need proper briefing, support, and — where appropriate — remuneration for their time.
- Legal responsibilities: Trustees remain legally responsible for how charitable funds are spent, even when decision-making is shared.
What It Means for the Future of Giving
Participatory grantmaking represents a meaningful evolution in how foundations think about their role. Rather than positioning themselves as experts dispensing resources, participatory funders see themselves as partners — facilitating community agency rather than directing it.
This shift requires humility, patience, and a willingness to relinquish control. But for many funders, the result is a more legitimate, more effective, and more equitable form of philanthropy — one that puts the people closest to a problem at the centre of solving it.