{"id":23032,"date":"2025-04-15T16:46:00","date_gmt":"2025-04-15T23:46:00","guid":{"rendered":"http:\/\/localhost:10053\/how-do-foundations-make-grantmaking-decisions\/"},"modified":"2025-05-20T17:20:06","modified_gmt":"2025-05-21T00:20:06","slug":"how-do-foundations-make-grant-decisions","status":"publish","type":"post","link":"https:\/\/www.insidephilanthropy.com\/explainers\/how-do-foundations-make-grant-decisions","title":{"rendered":"How Do Foundations Make Grant Decisions?"},"content":{"rendered":"\n<div style=\"margin-bottom:2%\" class=\"wp-block-genesis-blocks-gb-container explainer-heading gb-block-container\"><div class=\"gb-container-inside\"><div class=\"gb-container-content\">\n<div class=\"wp-block-genesis-blocks-gb-columns gb-layout-columns-3 gb-3-col-equal\"><div class=\"gb-layout-column-wrap gb-block-layout-column-gap-2 gb-is-responsive-column\">\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\">\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"400\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new.png\" alt=\"\" class=\"wp-image-23311\" style=\"width:150px\" srcset=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new.png 500w, https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new-300x240.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"381\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page.png\" alt=\"\" class=\"wp-image-23078\" style=\"width:300px\" srcset=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page.png 750w, https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page-300x152.png 300w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\" style=\"text-align:center\">\n<p><\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-container gb-block-container\"><div class=\"gb-container-inside\"><div class=\"gb-container-content\"><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who makes grant decisions at a foundation?<\/strong><\/h2>\n\n\n\n<p>A foundation\u2019s board of trustees is ultimately responsible for grant decisions. But how the board makes decisions can vary greatly from foundation to foundation.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The board of trustees usually makes the final decisions.<\/li>\n\n\n\n<li>In many cases, foundation staff make grant recommendations to the board.<\/li>\n\n\n\n<li>Everything that leads up to the decision varies from foundation to foundation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How does a foundation choose which grants to make? <\/strong><\/h2>\n\n\n\n<p>Some foundations\u2019 grant decisions are guided by thoroughly researched, multiyear grantmaking strategies. Other grantmakers are guided by instinct or have changing priorities from year to year.&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p>The grantmaking decision process can vary widely from foundation to foundation. While some foundations have very involved processes for making grant decisions, requiring nonprofits to go through an extensive application and review process with no guarantee of funding, other funders have straightforward grant processes. And while some foundations have transparent grant processes outlined on their websites, others\u2019 processes are inscrutable to outsiders.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-philanthropy-serving-organization\" target=\"_blank\" rel=\"noreferrer noopener\">Philanthropy-serving organizations<\/a> offer resources and professional development opportunities to train foundation staff and trustees in best practices, including transparency and clarity around how they make grant decisions.<\/p>\n\n\n\n<p>Elements of a grant decision making process include:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. How do nonprofits get considered for grants?<\/strong><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Open applications for grants. <\/strong><\/h4>\n\n\n\n<p>Some foundations welcome grant applications from any nonprofit that wants to apply. Foundation staff, consultants, and\/or the foundation\u2019s board may review grant applications and make recommendations.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Requests for proposals. <\/strong><\/h4>\n\n\n\n<p>Some foundations welcome grant applications from any nonprofit that wants to apply. Foundation staff, consultants, and\/or the foundation\u2019s board may review grant applications and make recommendations.&nbsp;Some funders issue requests for proposals, usually to engage a wide pool of grant applicants around a particular issue.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Solicited applications for grants.<\/strong><\/h4>\n\n\n\n<p>Some funders do not accept unsolicited asks or grant applications, but instead research the field and reach out to nonprofits they want to fund.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Letters of inquiry. <\/strong><\/h4>\n\n\n\n<p>Some foundations accept <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-letter-of-inquiry-loi\" target=\"_blank\" rel=\"noreferrer noopener\">LOIs (letters of inquiry)<\/a>, a short initial letter to ask whether an organization or project might be a good fit for a grant from the foundation.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Who reviews grant proposals at a foundation?<\/strong><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\">     <strong>Research and recommendations by foundation staff or consultants.&nbsp;<\/strong><\/h4>\n\n\n\n<p>Some foundations have staff members who are experts in the areas the foundation funds. Often called program officers, they may have backgrounds in academia,     the nonprofit sector or grassroots movements. Their knowledge about an issue and\/or relationships with nonprofits working on that issue gives them insight into the strength of a grant proposal. They may review grant applications and\/or propose grant ideas based on their own knowledge of the field. Program staff often present recommended grants to a foundation\u2019s board \u2014 sometimes in the form of an extensive grant write-up or a presentation at a board meeting \u2014 after which the board votes yay or nay on making the grant.&nbsp;<\/p>\n\n\n\n<p>Recommendations may also come from grant consultants with expertise in a particular funding area. Foundations may hire an external grant consultant in lieu of having a more permanent grant prospect research team.&nbsp;<\/p>\n\n\n\n<p>Learn more about fundraising consultants and <a href=\"https:\/\/www.insidephilanthropy.com\/consult\">hiring an expert consultant for your needs with Inside Philanthropy<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Board research and review.<\/strong><\/h4>\n\n\n\n<p>At foundations with small staffs or no staff at all, the board itself may research possible grantees or review grant applications, or work with an external advisor or philanthropic consultant.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Community panels. <\/strong><\/h4>\n\n\n\n<p>At community foundations as well as private foundations that engage in participatory grantmaking, grant proposals are reviewed and discussed by members of the community that will be impacted by the grant.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Types of grant decision making processes<\/strong><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Staff recommendation, board approval.<\/strong><\/h4>\n\n\n\n<p>Boards will sometimes empower staff to make some or all grant decisions, and their board sign-off is mostly a formality. Other boards retain decision making power and considerable involvement in researching and discussing possible grants before finalizing their decisions.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Participatory grantmaking<\/strong>.<\/h4>\n\n\n\n<p>Participatory grantmaking gives grantmaking decision power to the community that will be most impacted by the grants. This might involve bringing community members into decision making alongside foundation staff or board members, or entirely ceding the grant review and decision making process to a community panel. Participatory grantmaking is on the rise, though it is still far from the norm in philanthropy.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Ad hoc grant decisions. <\/strong><\/h4>\n\n\n\n<p>While many funders have deliberate grantmaking processes, at others the board simply makes grant decisions \u2013 on a whim, based on instinct, or however they are compelled to act in any given grant cycle.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How can nonprofits navigate different grantmaking decision processes? <\/strong><\/h2>\n\n\n\n<p>It\u2019s not easy on nonprofits that every funder has its own process, different application requirements, and varying levels of transparency about how grant decisions are made. But it\u2019s the reality.&nbsp;<\/p>\n\n\n\n<p>Some tips for nonprofits navigating this challenging terrain:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>When possible, learn about each prospective funder\u2019s grant process. You may be able to find grantmaking strategies or grant application guidelines on their website.&nbsp;<\/li>\n\n\n\n<li>For funders whose decision making processes are opaque, inconsistent or nonexistent, the best thing a nonprofit can do is continue doing good work, networking and responding to an invitation to apply, or a surprise grant announcement, if it appears.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Learn more about the grant process and how to find grants at Inside Philanthropy\u2019s <a href=\"https:\/\/www.insidephilanthropy.com\/learn\" target=\"_blank\" rel=\"noreferrer noopener\">Learn Center<\/a>.&nbsp;Looking for grants? Find funders for your nonprofit with IP\u2019s <a href=\"https:\/\/www.insidephilanthropy.com\/find-a-grant\" target=\"_blank\" rel=\"noreferrer noopener\">Grant Finder<\/a>, the only grant prospect research tool that goes beyond 990s.<\/h3>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">You might also want to check out:<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-letter-of-inquiry-loi\" target=\"_blank\" rel=\"noreferrer noopener\">What is a letter of inquiry (LOI)?<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-the-difference-between-solicited-and-unsolicited-requests\" target=\"_blank\" rel=\"noreferrer noopener\">What is the difference between solicited and unsolicited requests?<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/debate-who-should-decide-what-gets-funded\" target=\"_blank\" rel=\"noreferrer noopener\">Debate: Who should decide what gets funded?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p class=\"\">Some foundations have staff members who are experts in the areas the foundation funds. Often called program officers, they may have backgrounds in academia, the nonprofit sector or grassroots movements. They may have expert knowledge of an issue and\/or relationships with nonprofits working on it.<\/p>\n","protected":false},"author":470,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"content-sidebar","footnotes":""},"categories":[26779],"tags":[26780],"ppma_author":[32648],"class_list":{"0":"post-23032","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-explainers","7":"tag-ip-explainer","8":"author-ipstaff","9":"entry"},"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"IP Staff","author_link":"https:\/\/www.insidephilanthropy.com\/author\/ipstaff"},"authors":[{"term_id":32648,"user_id":470,"is_guest":0,"slug":"ipstaff","display_name":"IP Staff","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","author_category":"","first_name":"IP Staff","writer-profile":"","last_name":"","user_url":"","job_title":"","linkedin":"","instagram":"","twitter":"","facebook":"","description":""}],"_links":{"self":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/users\/470"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/comments?post=23032"}],"version-history":[{"count":17,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23032\/revisions"}],"predecessor-version":[{"id":211005,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23032\/revisions\/211005"}],"wp:attachment":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/media?parent=23032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/categories?post=23032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/tags?post=23032"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/ppma_author?post=23032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}