Participatory Grantmaking: letting communities decide

Definition

Participatory grantmaking is an approach in which the communities affected by funding help decide how it is allocated. Rather than the funder alone choosing grantees, decision-making power is shared with the people the funding is meant to serve.

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

Participatory grantmaking is an approach where the people affected by a funding decision take part in making it. Instead of a funder's staff or board deciding alone, community members, and sometimes potential grantees themselves, help set criteria and choose who gets funded.

The premise is that those closest to a problem have the clearest view of what will work. Sharing decision power is meant to produce better-targeted funding and to correct the imbalance of a distant funder deciding on a community's behalf.

How is it different from a selection committee?

A conventional selection committee is usually made up of the funder's own people or its chosen experts. Participatory grantmaking changes who sits at that table: it deliberately includes the affected community in the decision, not just as advisors but as decision-makers.

So the mechanism (a group evaluating and choosing) can look similar, but the composition and the power dynamic are different. The point of participatory grantmaking is precisely that the decision no longer rests with the funder alone.

How is it different from trust-based philanthropy?

They are complementary but address different stages. Participatory grantmaking concerns who makes the funding decision. Trust-based philanthropy concerns how the funder treats grantees once the decision is made, with lighter reporting and unrestricted support.

A funder could share decision power (participatory) without lightening its reporting, or lighten reporting (trust-based) while still deciding alone. In practice the two often go together, as parts of a wider effort to shift power in philanthropy.

Managing participatory processes in a platform

Involving external decision-makers raises practical questions of access, scoring and transparency. A grant management platform can give community reviewers controlled access to applications and capture their input in the same auditable flow as any other grantmaking decision.

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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

Matching Funds

Matching funds are money a grant recipient must raise from other sources to unlock a funder's grant, often on a set ratio such as 1:1. They demonstrate broader support and stretch the funder's contribution.

Grant Management

Capacity Building Grant

A capacity building grant is funding aimed at strengthening an organisation itself, its skills, systems, governance or strategy, rather than paying for a specific program. It invests in making the organisation more capable and resilient.

Grant Management

Fiscal Sponsorship

Fiscal sponsorship is an arrangement where an established tax-exempt organisation receives and administers funds on behalf of a project that lacks its own tax-exempt status, enabling that project to access grants and tax-deductible donations.

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