A grantmaker is an organization that provides funds, known as grants, to individuals, public entities, or other organizations. These funds are awarded to support activities that align with the grantmaker’s specific mission or objectives. Unlike loans, grants are gifts that do not need to be repaid. This financial support enables recipients to carry out projects or programs that might otherwise lack the necessary resources, serving a wide range of purposes from scientific research to community arts programs.
The Role of a Grantmaker
Grantmakers exist to channel financial resources toward specific societal goals. Their primary function is to advance a mission, which could be anything from alleviating poverty to promoting environmental sustainability or supporting medical research. This mission acts as the guiding principle for all funding decisions. By providing capital to nonprofit organizations, educational institutions, and sometimes individuals, they help address needs that are not fully met by the public or private sectors.
Types of Grantmakers
Private Foundations
Private foundations are nonprofit organizations that derive their funding from a single source, such as an individual, a family, or a corporation. Family foundations are funded by members of a single family and often reflect their philanthropic interests, while independent foundations operate with more autonomy. These organizations have a board of trustees that makes funding decisions in accordance with the foundation’s established mission.
Community Foundations
Community foundations are public charities focused on supporting a specific geographic area. They manage a collection of charitable funds established by various local donors to address their community’s needs over the long term. A board of local leaders governs the foundation, using their insight into regional challenges to guide funding toward effective local projects.
Corporate Foundations
Corporate foundations are charitable organizations created and financially supported by a for-profit business, serving as a vehicle for corporate social responsibility (CSR) initiatives. They award grants that align with the company’s industry, geographic footprint, or employee interests. While legally separate, the foundation’s board often includes company executives, and its giving priorities are influenced by the corporation’s strategic goals.
Government Agencies
Government agencies at the federal, state, and local levels are significant grantmakers, distributing public funds from taxpayer revenue. Federal agencies award grants on a national scale for research and public services, while state and local agencies address more localized needs. The process for securing government grants is highly structured, with specific legislative mandates and rigorous reporting requirements.
The Grantmaking Process
The grantmaking process begins when leadership identifies a need that aligns with the organization’s mission. Based on this priority, they develop a grant program with defined goals and eligibility requirements. This leads to a public announcement, often called a Request for Proposals (RFP), which invites organizations to apply for support.
Once applications are received, they undergo a thorough review by program officers with expertise in the funding area. They assess each proposal against the grantmaker’s established criteria for mission alignment, project feasibility, and completeness. A committee or the board of trustees makes the final funding decisions based on staff recommendations.
The process does not end once a grant is awarded. Grantmakers require grantees to submit periodic progress and financial reports throughout the grant period. This monitoring allows the grantmaker to track outcomes, measure the impact of their investment, and inform future funding strategies.
What Grantmakers Look for in Applicants
When evaluating proposals, grantmakers first look for a strong alignment with their mission. An applicant must demonstrate an understanding of the funder’s goals and show how their proposed project directly contributes to them. A project that is compelling on its own may be rejected if it falls outside the grantmaker’s specific funding priorities.
Beyond mission fit, grantmakers seek a well-defined project plan with measurable outcomes, including clear objectives and a realistic timeline. Evidence of organizational capacity is also examined; funders need to be confident that the applicant has the leadership and infrastructure to execute the project. A sound budget that justifies all requested expenses is another component of a competitive application.
How to Find Grantmakers
Online databases are a primary resource for grant seekers. Websites like Candid’s Foundation Directory Online and GrantStation offer searchable databases of foundations, corporate givers, and government funders. These platforms allow users to filter opportunities by subject area and geographic focus, helping to narrow down prospects.
Another strategy is to research similar organizations. Nonprofits often publicly acknowledge their funders in annual reports or on their websites. By identifying which foundations support comparable work, you can build a list of promising prospects. Professional associations also provide resources and networking opportunities to connect with grantmakers.