Definition Of Grantmaking
Grantmaking is simply the awarding of a grant from a foundation or an individual to a non-profit charity or else. The purpose of the act is to support a cause which aims to deliver social and beneficial impact. Also, the grant-maker will eventually earn a good reputation and positive customer attitude.
Breaking Down Grantmaking
In spite of the apparent obviousness of the term, the grant-making process underneath is complex and requires caution and mindfulness. As a matter of fact, a granter must invest in those projects coherent with its own values and mission. That’s the key point. In fact, investing money and time in charities that don’t align with your identity and are not transparent about their policies can be unproductive and detrimental to your business. You could end up being associated with a program that eventually turns out to be a scam, thus harming your brand image.
Furthermore, a successful and profitable grant investment requires the use of a software. In fact, if you are working simultaneously on different projects, the easiest way to manage them all is through a software. The latter, as a matter of fact, allows you to centralize and optimize all the activities. Moreover, you can monitor and eventually assess them based on your targets and KPIs.
How does the grantmaking process work?
Grantmaking, as stated above, is a delicate process consisting of a series of steps that must be managed with attention. These usually consist of:
- Criteria definition: clearly state your mission and objectives. Afterwards, choose the right criteria that will help you choose the projects best suited to your culture.
- Request management: make sure anyone knows that you accept grant requests. Use a software that can automatically process applications.
- Analysis: analyze all the project in-depth, consult experts, trust your instincts etc.
- Assessment and ranking: once the analysis is over, it’s time to draft a rank of the projects, with a score that depends on their criteria satisfaction
- Selection: select the project(s) that scored higher
- Communication: let the grant receiver(s) know that they have been granted the financing. After that, you have to set up some guideline regarding subjects such as collaboration, communication and so on.
- Monitoring and project management: ask your grant receiver to update you with constant reports and, depending on the single case, collaborate actively on the project
- Return Measurement: define clear and measurable KPIs that will help you assess the success of your investment.
Every organisation has its own processes, depending on its size, the objectives and people involved. This makes grantmaking a very rich and diverse domain.