Participatory Grantmaking: Empowering Communities in Modern Philanthropy

 In the traditional world of philanthropy, decisions about who receives funding have typically been made by a small group of foundation executives, board members, or wealthy donors. While this model has fueled countless programs and initiatives, it often places power — and decision-making authority — in the hands of people who may not fully understand the communities they aim to serve. In recent years, a shift has emerged toward participatory grantmaking (PGM) — a model that actively involves communities and stakeholders in the process of allocating philanthropic resources.

Participatory grantmaking represents a profound evolution in philanthropy, emphasizing trust, shared power, and responsiveness to community needs. It challenges traditional hierarchies and seeks to democratize the grantmaking process, ensuring that those closest to the challenges are part of the solution.

This blog explores what participatory grantmaking is, how it works, why it is growing, and what it means for the future of philanthropy.

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1. Defining Participatory Grantmaking

Participatory grantmaking is a funding approach in which community members, program beneficiaries, or frontline stakeholders are directly involved in decisions about the allocation of grants. Unlike conventional grantmaking, where funders dictate priorities, evaluate proposals, and approve budgets, participatory grantmaking distributes these responsibilities among a broader group that has lived experience or intimate knowledge of the issues being addressed.

The approach can include:

• Community advisory boards that review and select grantees

• Peer-led decision-making committees

• Online platforms where community members vote or provide input on funding priorities

• Collaborative frameworks where funders and communities co-design grant guidelines

The core philosophy of PGM is that people closest to the problem often have the best insight into what solutions will be effective. By including them in the decision-making process, philanthropy becomes more equitable, responsive, and contextually informed.

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2. Key Principles of Participatory Grantmaking

Participatory grantmaking is guided by several principles that differentiate it from traditional philanthropy:

1. Shared Power: Decision-making is distributed rather than centralized. Communities have a real voice in where resources are directed.

2. Trust-Based Relationships: Instead of strict reporting requirements and rigid oversight, funders prioritize trust, listening, and flexibility.

3. Equity and Inclusion: PGM intentionally elevates the voices of marginalized, underrepresented, or directly impacted communities.

4. Transparency: Processes, criteria, and funding decisions are communicated openly to foster accountability and mutual understanding.

5. Capacity Building: The process emphasizes not only funding programs but strengthening the leadership and decision-making capacity of communities themselves.

These principles aim to shift power dynamics in philanthropy, moving from a top-down model to one that is participatory, inclusive, and responsive.

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3. How Participatory Grantmaking Works

The mechanics of participatory grantmaking can vary widely depending on the organization, the scale of funding, and the target communities. However, common elements include:

• Community Engagement: Funders start by identifying the people or groups most affected by the issues they want to address. These individuals are invited to participate in discussions, advisory boards, or decision-making panels.

• Shared Decision-Making: Community members review grant applications, assess proposals, and often make funding recommendations or final decisions.

• Feedback Loops: Input from participants is collected and incorporated into future grant cycles to ensure continuous improvement.

• Capacity Support: Funders may provide training or guidance to community members so they can evaluate proposals effectively, ensuring informed decisions.

• Flexibility in Funding: Participatory grantmaking often emphasizes unrestricted or flexible funding, allowing organizations to allocate resources according to real-time needs rather than rigid guidelines.

By combining structured processes with community insight, PGM can fund projects that are highly relevant and effective, reflecting local priorities rather than external assumptions.

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4. Examples of Participatory Grantmaking

Numerous foundations and nonprofits have embraced participatory grantmaking in recent years. Examples include:

• The Solutions Journalism Network uses community input to determine which stories receive support, ensuring that reporting addresses local issues.

• The Disability Funders Network has piloted participatory grantmaking committees composed of disabled individuals to allocate grants supporting accessibility and inclusion initiatives.

• Peer-led Funds: Some environmental, social justice, and youth-focused organizations empower peers to review and select projects, democratizing access to resources in communities historically excluded from funding decisions.

These examples demonstrate that participatory grantmaking is not limited to any single sector — it can be applied to social justice, health, education, environmental protection, and more.

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5. Why Participatory Grantmaking Is Growing

Several factors explain the increasing adoption of participatory grantmaking:

1. Demand for Equity and Inclusion: Donors and communities alike are recognizing that traditional philanthropy often reinforces existing power imbalances. PGM actively addresses these inequities.

2. Better Alignment With Community Needs: Funders have realized that top-down approaches sometimes result in ineffective or irrelevant programs. Participatory models ensure resources are directed where they matter most.

3. Donor Accountability and Transparency: Involving community members fosters accountability. Funders can demonstrate that their decisions are informed by real-world knowledge rather than assumptions.

4. Empowering Marginalized Voices: Social movements, advocacy groups, and grassroots organizations have pushed for more participatory models to amplify historically underrepresented voices.

5. Changing Donor Expectations: Younger philanthropists, impact investors, and socially conscious donors increasingly value approaches that redistribute power, promote transparency, and enable systemic change.

6. Evidence of Effectiveness: Research shows that participatory grantmaking can improve program relevance, build local capacity, and strengthen community trust in philanthropic institutions.

The convergence of social awareness, technology, and research evidence has accelerated the adoption of participatory grantmaking globally.

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6. Benefits of Participatory Grantmaking

Participatory grantmaking offers multiple advantages for funders, communities, and grantees alike:

• Greater Relevance and Impact: Funding decisions reflect real community priorities rather than assumptions imposed by outsiders.

• Trust and Legitimacy: Communities are more likely to engage with organizations they helped shape, reducing resistance or skepticism.

• Capacity Development: Participants gain leadership skills, governance experience, and insights into funding mechanisms.

• Innovation: Community-driven insights often lead to creative solutions that traditional approaches might overlook.

• Sustainability: Programs designed with local knowledge are more likely to be maintained and adapted over time.

In essence, participatory grantmaking shifts the focus from funding projects to empowering people — fostering agency, ownership, and lasting change.

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7. Challenges and Considerations

While participatory grantmaking is promising, it is not without challenges:

1. Time-Intensive: Involving multiple stakeholders in decision-making can slow the grant cycle.

2. Capacity Gaps: Community members may require training to evaluate proposals effectively, which can add costs and complexity.

3. Power Dynamics: Even participatory processes must be carefully designed to ensure dominant voices do not overshadow marginalized ones.

4. Expectation Management: Participants may expect influence over all aspects of funding; clear communication about the scope of participation is essential.

5. Measuring Success: Evaluating the effectiveness of PGM itself requires thoughtful metrics beyond traditional grant outcomes, such as empowerment, collaboration, and trust.

Funders must navigate these challenges carefully to maintain the integrity and effectiveness of participatory grantmaking initiatives.

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8. Participatory Grantmaking and Technology

Technology has accelerated the growth and accessibility of participatory grantmaking. Online platforms allow community members to review proposals, vote on funding decisions, and provide feedback virtually. Digital tools also enable more inclusive participation by connecting dispersed communities or individuals who might otherwise be excluded due to geography or mobility constraints.

Platforms like Neighborly, GrantAdvisor, and other collaborative funding tools provide frameworks for transparency, voting, and feedback, reducing administrative burdens while amplifying community voices. Technology ensures that PGM can scale without losing its core principles of equity and inclusivity.

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9. Participatory Grantmaking and Equity

At its core, participatory grantmaking is about equity — redistributing decision-making power to those most affected by funding outcomes. Traditional grantmaking often prioritizes the perspectives of wealthier, more educated, or urban elites, inadvertently marginalizing rural communities, youth, or minority populations.

By involving communities directly in funding decisions, participatory grantmaking fosters:

• More culturally relevant programs

• Greater responsiveness to urgent local needs

• Recognition of lived experience as expertise

This equity-driven approach is particularly valuable in sectors like social justice, disability rights, Indigenous initiatives, and environmental activism, where historical exclusion has limited access to philanthropic resources.

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10. The Future of Participatory Grantmaking

As foundations and nonprofits continue to embrace participatory models, several trends are likely to shape the future:

• Scaling Community Influence: Organizations will seek ways to involve larger numbers of stakeholders without slowing decision-making.

• Hybrid Models: Combining traditional expertise with community input to balance efficiency with inclusivity.

• Integration with Impact Metrics: Funders will develop tools to measure not just programmatic success but also the process-oriented benefits of participation, such as empowerment and capacity building.

• Global Networks: Cross-border participatory grantmaking may allow communities in different countries to share decision-making experiences and learn from one another.

• Decentralized Funding: Technologies like blockchain could support transparent, peer-driven grant allocation in a fully decentralized system.

Participatory grantmaking is poised to become a defining approach of 21st-century philanthropy — one that blends local insight, social accountability, and innovation to create more meaningful and lasting impact.

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Conclusion

Participatory grantmaking is more than a trend; it is a fundamental shift in how philanthropy operates. By redistributing power and centering the voices of those closest to the issues, this model addresses longstanding inequities and increases the relevance, effectiveness, and sustainability of funded programs.

The growth of participatory grantmaking reflects a broader cultural and philosophical change in philanthropy: a move from top-down decision-making to shared ownership, from treating communities as recipients to recognizing them as experts.

As funders continue to embrace participatory approaches, the field of philanthropy stands to become more democratic, responsive, and impactful than ever before. By listening to the people who live the challenges every day, philanthropy not only funds solutions but empowers communities to create lasting, transformative change.