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Introduction
Grantmaking organisations wield significant influence in shaping social outcomes through their funding decisions. Recent literature reveals a growing recognition that traditional grantmaking processes often perpetuate existing inequities rather than addressing them. Research indicates that in the U.K. fewer than 6% of senior leaders in charities are from BAME backgrounds, compared to 14% of the population. In the U.S., 8.4% of foundation CEOs identify as people of color, and merely 7% of philanthropic funding supports ethnic or racial minority populations. This review examines emerging literature on decision-making approaches that support equity and justice in grantmaking, highlighting frameworks, participatory methodologies, organisational practices, and evaluation strategies that can transform how funding decisions are made and implemented to advance equity goals.
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Barriers to equitable decision-making
A comprehensive study commissioned by the Department of Labor in 2023-2024 identified common barriers to equity at each stage of the grantmaking process, from pre-award through post-award phases. These barriers include limited outreach to diverse communities, application processes that privilege certain types of organisations, review criteria that reflect dominant cultural norms, and insufficient support for grantees from marginalised communities during implementation.
Research shows that traditional philanthropic decision-making structures tend to concentrate power among individuals who may have limited direct experience with the issues being addressed, potentially leading to funding decisions that fail to effectively address community needs. Studies reveal that philanthropy consistently underfunds organisations serving diverse communities, thereby deepening existing inequities, often unintentionally.
Another critical barrier lies in the institutional culture and structure of grantmaking organisations. The ACF points to “a reluctance to cede power and a fear of losing control,” which prevents funders from fully embracing inclusive decision-making mechanisms. In practice, decision-making panels often lack diversity, and time-bound grant cycles do not allow for meaningful community involvement. The COFEM guide warns that even when marginalised voices are invited in, “tokenism remains a serious risk if there is no genuine redistribution of decision-making authority”.
Additionally, the LSHTM research finds that community engagement efforts are often hindered by “technical language, inaccessible formats, and time pressures” which exclude grassroots participants from fully participating in the process.
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Participatory decision-making approaches
Principles of participatory grantmaking
The Participatory Grantmaking Community defines this approach as one that “cedes decision-making power about funding—including the strategy and criteria behind those decisions—to the very communities that funders aim to serve”. This represents a significant departure from traditional models where funders retain exclusive control over who receives grants and for what purposes.
Participatory approaches are grounded in the ethos that people most affected by decisions have a right to make those decisions. Rather than treating community members as passive beneficiaries, these approaches recognise their expertise and agency. Literature indicates that participatory grantmaking increases participants’ sense of power and leadership while leading to funding decisions that better reflect community priorities and needs.
Implementation models and case examples
Recent literature provides multiple examples of organisations implementing participatory decision-making in their grantmaking. The Digital Freedom Fund’s 2024 pilot initiative demonstrates a graduated approach to participatory grantmaking, beginning with changes to the review and recommendation stages of their pre-litigation grant type. Their experience highlights that there is no single correct way to implement participatory grantmaking and that organisations often benefit from an experimental, iterative approach tailored to their particular context and goals.
The literature documents various participatory models employed by organisations such as the International Trans Fund, Disability Rights Fund, Thousand Currents, Black Feminist Fund, Mama Cash, Legal Empowerment Fund, Red Umbrella Fund and Share-Net International. These diverse examples illustrate that participatory processes can be adapted across different issue areas, geographic contexts, and organisational structures.
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Benefits and challenges
Research indicates that participatory grantmaking offers several benefits, including better alignment with community needs, increased legitimacy of funding decisions, and the development of leadership capacity among community members. However, the literature also acknowledges that implementing participatory approaches requires significant organisational commitment and may necessitate changes to multiple aspects of the grantmaking process.
organisations adopting participatory approaches must navigate challenges related to power dynamics, resource constraints, and the need to balance inclusive decision-making with efficient processes. The Digital Freedom Fund’s experience illustrates that organisations may need to implement changes gradually, learning and adapting as they go rather than attempting to transform all aspects of their grantmaking process simultaneously
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Processes for equitable decision-making
Integrating equity into organisational culture
Research published in 2024 identifies that promoting equity in grantmaking requires a three-phase approach, beginning with establishing the proper organisational context. This involves initiating diversity, equity, inclusion, and justice (DEIJ) efforts within the grantmaking organisation, investing in community partnerships, and establishing clear DEIJ goals. Literature emphasises that organisations must move beyond superficial commitments to equity by embedding equity considerations into their core operations and decision-making processes.
Effective integration of equity principles requires organisational leadership to explicitly name and publicly share values related to equity, diversity, and inclusion. According to PEAK Grantmaking research, while 64% of responding grantmakers have some form of equity policy or values statement, meaningful implementation requires consistent application of these values throughout all decision-making processes.
Diversifying decision-making bodies
The literature consistently emphasises the importance of increasing diversity among those with decision-making authority in grantmaking organisations. Research indicates that bringing diverse perspectives into decision-making processes can help uncover and address implicit biases that might otherwise go unrecognised.
Organisations can diversify decision-making by increasing representation of people from marginalised communities on staff, boards, and grant review committees. Additionally, some funders have implemented external review committees or advisory boards comprising individuals with lived experience relevant to the organisation’s focus areas. These approaches can help ensure that funding decisions benefit from diverse perspectives and expertise.
Restructuring decision-making processes
Beyond diversifying who makes decisions, the literature points to the importance of restructuring how decisions are made. This includes critically examining traditional hierarchies and creating more distributed leadership models. The Digital Freedom Fund, for example, has implemented both a more participatory salary structure and distributed leadership approaches as part of their broader commitment to equitable decision-making.
Research suggests that organisations should take an intentional look at every step in their grantmaking process to identify and address potential sources of bias. This includes examining how potential grantees are identified, how applications are structured and reviewed, and how funding decisions are ultimately made.
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Reducing bias in grantmaking processes
Identifying sources of bias
The literature identifies multiple points in the grantmaking process where bias can emerge, from the language used in grant applications to the criteria used to evaluate proposals. Research indicates that even well-intentioned grantmakers may inadvertently perpetuate inequities through seemingly neutral practices that privilege certain types of organisations or approaches.
Studies have documented significant disparities in funding allocations, with only 7% of philanthropic funding supporting ethnic or racial minority populations, 1% allocated to Native American causes, and 1% to Latino communities despite representing 18% of the U.S. population. These disparities suggest the presence of structural biases that require intentional efforts to address.
Strategies to mitigate bias
Recent research recommends specific practices to reduce bias at each stage of the grantmaking process. These include:
- Using inclusive language in grant applications and outreach materials
- Proactively seeking out and engaging potential grantees from underserved communities
- Reviewing application requirements to remove unnecessary barriers
- Training review committees on recognizing and mitigating implicit bias
- Implementing structured review processes that reduce subjectivity
- Providing additional support to organisations from marginalised communities during the application and implementation processes
PEAK Grantmaking research emphasises that driving equity requires “taking an intentional look at every step in the grantmaking process and applying practices proven to reduce bias”. This includes examining the language and questions on grant applications, the process for sourcing potential grantees, technology deployment, and the restrictions placed on grant funds.
Technology and bias mitigation
The literature acknowledges both the potential benefits and risks of using technology in grantmaking decision processes. While technology can increase efficiency and reach, it may also introduce or amplify biases if not carefully designed and implemented.64 organisations must critically examine how their technological systems may impact different communities and make adjustments to ensure equitable access and outcomes.
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Conclusion
The literature on decision-making approaches that support equity and justice in grantmaking reveals a complex but promising landscape of emerging practices and frameworks. Research consistently emphasises the importance of diverse and inclusive decision-making bodies, structured processes that mitigate bias, and participatory approaches that center the voices of those most affected by funding decisions.
Organisations seeking to enhance equity in their grantmaking must address both the who and how of decision-making—diversifying who has decision-making authority while also restructuring how decisions are made. Frameworks such as RAPID, the three-phase DEIJ approach, and the theoretical framework for community foundation decision-making provide valuable guidance for organisations undertaking this work.
The literature also highlights that achieving equity in grantmaking requires organisational commitment and sustained effort rather than quick fixes. organisations should approach this work with a learning mindset, regularly evaluating their processes and outcomes and adapting their approaches based on new insights and feedback. By doing so, grantmakers can leverage their unique position and resources to advance equity and justice in the communities they serve.
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References
- https://www.bain.com/insights/rapid-decision-making/