Grantmaking: how funders decide where money goes

Definition

Grantmaking is the practice of a funder distributing money to organisations or individuals to advance a cause. It covers not just the act of giving, but the strategy behind it: what to fund, whom to fund, and how to decide.

Grant Management
Published on
August 10, 2026
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What is grantmaking?

Grantmaking is the practice of a funder distributing money to organisations or individuals to further a mission. The term covers both the act of awarding grants and the strategic thinking that shapes it: choosing focus areas, setting criteria, and deciding how funds create the most good.

It is the funder's side of the philanthropic relationship. Where a grantee seeks and uses funds, the grantmaker decides how to deploy them, which makes grantmaking as much about judgement and strategy as about generosity.

How is grantmaking different from grant management?

The two are easily confused but sit at different levels. Grantmaking is the strategy and philosophy: what a funder chooses to support and why. Grant management is the operational discipline: running the applications, reviews, awards and reporting that put that strategy into practice.

Put simply, grantmaking decides the destination; grant management drives the journey. A funder can have a brilliant grantmaking strategy and still fail on execution if the management is weak, and vice versa, which is why the two are treated as distinct but complementary.

What makes grantmaking strategic?

Grantmaking becomes strategic when a funder sets focused goals and a deliberate plan to reach them, rather than simply responding to incoming requests. A strategic grantmaking approach means the funder drives the agenda, commits to an issue over several years, and holds itself accountable for outcomes.

This contrasts with responsive grantmaking, where grantees drive the agenda by proposing ideas. Most mature funders blend the two, but the strategic dimension is what turns a stream of individual grants into a coherent effort aimed at measurable change.

Managing grantmaking in a platform

As a grantmaking strategy grows across programs, causes and geographies, spreadsheets stop being enough. A grant management platform lets a funder run its whole grantmaking operation in one place, from application to award to impact reporting, so strategy and execution stay connected. For a practical view, see how teams prove the ROI of a grant program to their board.

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Related terms

The newest terms we've added, the words teams managing grants, sponsorship, and CSR come across most often.

Grant Management

International Grantmaking

International grantmaking is awarding grants to organisations based outside the funder's own country, which adds verification, currency, language and reporting requirements that domestic grants do not carry.

The additional work is front-loaded. Establishing that a foreign organisation can be funded is harder than paying it, and the route chosen at the outset determines the obligations for years afterwards.

Grant Management

Data Residency

Data residency is the country or region where a platform physically stores the data you put into it. It is a contractual commitment, not a technical preference, and a supplier should be able to state it in writing.

For grant, sponsorship and volunteering programmes the data in question includes applicant and employee personal data, which is what moves residency out of the IT conversation and into procurement.

Grant Management

Post-Award

Post-award is the phase of the grant lifecycle that follows the funding decision: disbursing funds, tracking how they are spent, collecting grantee reports, measuring outcomes against the objectives set at the start, and closing the grant.

Post-award is where impact is either evidenced or lost. A funder whose attention stops at the payment has spent the money without being able to say what it produced.

Want to see how this dashboard works?

Book a 15-minute demo and we'll show you the exact setup our client uses to track 15+ regional programs.

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