There is lots of debate about different trends in grantmaking right now so I wanted to highlight those I think are hot topics and share some thinking on them.
My work as a freelance assessor means I get to support a wide range of funders across the UK which has given me some good insights into what the current trends are. This blog will give you the lowdown on 5 of the big issues in the sector today, and why as an assessor, you need to know about them.
Participatory Grantmaking (PGM)
This is where funding decisions are made by the communities and individuals that benefit from the grants, rather than the funders themselves. This means lived experience is better considered in the grant making process, enabling funding to be more responsive to local need. PGM is wide ranging but one example of it in practice is where a funding panel is made up of people who represent the community they wish to support. The National Lottery Community Fund gives further examples.
Assessors benefit from being aware of this because a focus on PGM may impact how an assessment is conducted. If you have relevant lived experience, a PGM focused funder is likely to welcome this. It may also impact how you feedback findings to a Panel for example, facilitating a decision rather than directing.
Another example is that PGM may enable an assessment process to be simplified. This could mean overlooking how professionally written an application is, and focusing more heavily on the project itself. Speaking to applicants wherever possible at assessment stage, can also help this process.
Flexible funding
Where funders are encouraged to embrace open and trusting grant making practices to drive greater impact and make better use of fewer resources. IV AR are leading this approach having developed a list of commitments grantmakers can adopt to achieve this. Commitments include being fair and transparent with applicants and having clear communication at every stage of the funding process.
For assessors, giving consideration to what is fair and proportionate when working with applicants helps to mitigate the power imbalance that can occur, and create a more equitable process for all. Thinking how you can communicate clearly, ensuring assessments are proportionate in length and complexity, and providing clear and concise feedback all play an important role.
Enterprise Grants
As we know, UK charities are navigating many challenges, from rising demand for services to an increasingly competitive environment for securing grants. There is also a need to future-proof and increase resilience for the longer term; combined, these challenges are driving a need for charities to explore new and innovative ways to thrive.
One approach gaining traction is to adopt a social enterprise way of doing business which maintains the focus on social impact whilst enabling greater income generation, often from trading, and the re-investment of profits into its social cause. This model can not only strengthen the long-term resilience of organisations but also amplify their social impact.
Known as Enterprise Grantmaking, this approach is being led by the Funders Collaborative Hub, with a growing number of funders across the UK offering this type of grant.
For assessors, it's helpful to consider that whilst assessment processes for charitable grant applications are well established, the approach needed to review projects of an enterprise nature is different. This is because they are evaluated on their ability to impact an organisation financially and achieve long-term sustainability, instead of primarily on their social impact. Developing skills in understanding financial forecasts, reporting and business plans can all help.
Artificial Intelligence (AI)
The use of AI in our everyday life is growing, and it's no different for the funding sector. Fundraisers can use AI to write proposals, and funders to assist with screening and shortlisting applications. But whilst AI has its uses, there are challenges too. Ensuring it enhances our work rather than replacing it is vital.
Many of us work in the charitable sector because we care deeply about helping others, but AI doesn’t always fit with this approach. For example, using AI to conduct grant assessments can be problematic because it causes the loss of human judgment at a critical stage of the funding process.
Being able to connect to the cause, to use empathy and a deeper understanding of the context the applicant is operating in are all essential components of a strong assessment, which can't be easily replaced by robots. Using a balance of resources that puts people at its heart is key.
Growth in Grant giving
UK Grantmaking published its key findings for 2023-24 in June showing some interesting results; Grantmaking by Trusts and Foundations increased by 12% compared to the previous year at £8.2bn. They also became the largest source of grants for the charitable sector overtaking the government for the first time.
Whilst this initially paints a positive picture charities, especially small ones and those who represent minority groups, are struggling more than ever from reduced resources and funding. Collaboration at all levels of the charity sector will be needed to find solutions that not only increase resilience but that work for the long term. London Funders have written a useful article about how they did this.
For assessors, understanding the bigger picture can help you to know where opportunities lie but it also gives you the wider context in which you are working. Understanding the trends in grantmaking and how funders direct their grants can give you a heads up on where to focus development.
If like me, you benefit from continual learning and want to stay up to date with emerging trends, then you might want to check out these guides I've written; AI and assessing and Enterprise Grants . They are designed to develop your skills in these areas and increase confidence in assessing different proposals.
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