Grantmaking

Grantmaking is the process by which funders allocate resources to support social, cultural, scientific, or community activities. It is undertaken by foundations, government agencies, corporations, donor-advised funds, and individuals to advance defined missions.

The grantmaking cycle typically includes strategy development, needs assessment, proposal solicitation, due diligence, grant awards, monitoring, evaluation, and renewal or closure. Some funders offer unrestricted general operating support; others provide restricted project grants or capacity-building funding.

Common grant types include project grants, general operating support, capacity-building grants, fellowships, scholarships, and prize funds. Grants may be awarded for a defined period, with reporting requirements, and can be single-year or multi-year.

Governance and ethics require clear criteria, transparent processes, and safeguards against conflicts of interest. Grantmaking bodies establish due diligence standards, monitor use of funds, and strive for equity in reaching diverse organizations.

Evaluation emphasizes outcomes and impact, using logic models or theories of change and performance metrics to inform decisions. The field operates within legal and tax frameworks that vary by country and faces critiques regarding power, burden, and sustainability.