The grantmaking cycle

The pathway for every grantmaker will be different, depending on a range of factors. Grantmakers have different funding priorities and philosophies.

While diversity and creativity is a hallmark of grantmaking, there are some common steps to consider when starting out. To be an effective grantmaker, you can start anywhere on the pathway, and the steps listed below can be seen in the context of a circle rather than a straight line. You use the information from the end to inform the next beginning.

Some essential steps to consider in your approach:

  1. Establish mission, vision and purpose of grantmaking programme
  2. Design and establish legal structure and financial management systems, and confirm amount to be distributed
  3. Develop communications and public profile of funding program, including applicant guidelines and funding criteria
  4. Establish the governance structure responsible for granting decisions and fiduciary matters
  5. Invite applications and identify funding options, either through informal networks or formal application processes
  6. Analyse and research funding proposals by testing against criteria, assessing references and undertaking site visits
  7. Document proposals for discussion, review and decision by grantmaker
  8. Convene granting meeting with decision makers, which could be board members, trustees or advisory group members, or private donors
  9. Reach decisions for distribution of grants
  10. Communicate granting decisions, either as an offer of funds to a grantee, or rejection of proposal
  11. Agree on funding relationship and terms of grant, then release funds
  12. Receive receipt from grant recipient
  13. Maintain contact throughout length of funding
  14. Receive report and acknowledge outcomes, possibly evaluate, disseminate and promote results - celebrate!
  15. Review grantmaker vision, mission and purpose - then start again -

Philanthropy New Zealand thanks Genevieve Timmons for this material.