Grantmaking: how funders decide where money goes

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.

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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.

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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.

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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.