Thoughts on what strategic grantmaking means, why it isn't necessarily easy and the pros and cons of some key approaches to strategic grantmaking approaches. Produced as part of Philanthropy New Zealand's "Great Grantmaking" professional development programme.
1. Strategic grant-making – a conversation
FOR GREAT GRANT-MAKING PROFESSIONAL DEVELOPMENT PROGRAMME BY PHI LANTHROPY NZ
F R O M K A T E F R Y K B E R G , T H I N K T A N K C O N S U L T I N G
K A T E @ T H I N K T A N K . C O . N Z
1 2 J U N E 2 0 1 8
2. Outline
1. Scene setting and common ground
2. What does being strategic mean in philanthropy?
3. Exploring our key strategic challenges
4. Strategic grantmaking tools – when to use, when not use
5. Tips for strategic grantmaking
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3. Common experiences in grantmaking
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“There’s lots of buzzwords in philanthropy and it is
hard to know which approaches are best”
“Saying no to good applicants is no fun at all”
“Sometimes I worry that the grant decisions our trust
makes are not necessarily the best decisions”
“Sometimes I worry whether the advice I give is
necessarily the best advice”
“There must be ways we could do this better”
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4. What is strategic grant-making?
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Strategy is:
“a high-level plan to achieve one or more goals
under conditions of uncertainty…” (Wikipedia)
Usually includes some combo of vision / values /
mission / goals / actions / measurements etc
Strategic Grantmaking involves:
Clearly defining the change(s) in the world which your
organisation will contribute to, where you focus, how
you do things and how you measure progress
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5. Some challenges of strategic grantmaking
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Constraints – eg donor wishes, geographic
restrictions, conflicting worldviews
Measuring impact is a minefield
Philanthropic archetypes are imported and
somewhat flawed, eg:
The benefactor: Acts of charity from the upper class
The market: social change can be purchased from the
lowest bidder
We need more work on an Aotearoa model….
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7. The practical challenges of strategic philanthropy
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Peer Support Exercise:
What is one concrete question or challenge you puzzle over
in your daily work which would improve your grantmaking?
Groups of 3:
One minute for sharing your question or challenge
Four minutes for others to give feedback
Offer a sounding board rather than advice – eg “have you
thoughts about…” “what would happen if….” “when I faced
something similar, what I tried was ….”
Swap so each person has a turn
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8. Samples from the Strategic
Grantmaking Toolkit
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9. 1) Supporting Advocacy
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What it involves:
Working to create policy and system change on an issue
Eg Law change on hitting children vs funding anti violence services
At its best:
Changes our systems and world views
Challenges:
Do funders always know what is best?
Could we abuse our power?
Suggested approach
Research carefully and follow the lead of the community
Be transparent
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10. 2) Collective Impact and collaboration
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What it involves:
Supporting all players (communities, NGOs, funders,
government, business) to work for a shared vision
Eg Some youth employment initiatives
At its best:
The whole is greater than the sum of the parts
Challenges:
Decision making is slow
Egos can get in the way
Suggested approach
Build trust on a small project first
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11. 3) Venture Philanthropy
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What it involves:
Long term, hands-on support and funding to scale impact
At its best:
Provides multi-dimensional and long-term support
Provides partnership and opportunities for growth
Challenges:
Not everything should scale
Funder capture – do funders always know what is best?
Venture Capital model – maximising profit vs community
driven
Suggested approach
Stay humble and take your lead from the community
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12. 4) Piloting innovative approaches
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What it involves:
Supporting new ways of addressing wicked problems
At its best:
Seeds new ways of doing things – eg hospices and
women's refuges
Challenges:
Usually require 3 – 5 years commitment to test
Will government or other funders come in after you?
Suggested approach
Success is good and failure is learning
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13. 5) Participatory Philanthropy
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What it involves:
Funding decisions are made by the communities served
Eg Youth advisory groups, recipients decide the split
At its best:
Democratises philanthropy
Nothing about us without us
Challenges:
Who is / is not in the room?
Time consuming to organise
Suggested approach
Be prepared to cede power….
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14. Kate’s tips for strategic grantmaking
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1. Be clear on the change(s) in the world you want to contribute to
2. Use vision, values and goals constantly – they are your touchstone
3. Get out in the community to listen and learn
4. Staff and board should reflect the communities served. In particular
we need to be engaging with Māori and considering Te Tiriti
5. Understanding and increasing impact is about learning:
◦ Look in – how can you optimise your board, staff, processes & relationships?
◦ Look out – what have your grantees achieved? Failed at? Learned?
◦ Look forward – what does this mean for what you try next?
6. There is no one right way and no-one has all the answers
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15. Strategic grant-making – a conversation
FOR GREAT GRANT-MAKING PROFESSIONAL DEVELOPMENT PROGRAMME BY PHI LANTHROPY NZ
F R O M K A T E F R Y K B E R G , T H I N K T A N K C O N S U L T I N G
K A T E @ T H I N K T A N K . C O . N Z
1 2 J U N E 2 0 1 8