How shifting power in philanthropy can help nonprofits win more grants

If you’ve applied for grants before, you’ve probably experienced the traditional funding process:

• Long applications
• Strict reporting requirements
• Decisions made behind closed doors
• Funders setting priorities that may not match community needs

But a growing movement in philanthropy is challenging this model. It’s called participatory grantmaking, and it’s rapidly reshaping how foundations distribute funding. For nonprofits and social innovators searching for grants, understanding this trend can help you identify new funding opportunities, tailor your proposals, and build stronger relationships with funders.

What Is Participatory Grantmaking?

Participatory grantmaking shifts decision-making power away from foundations and toward the communities most affected by the issues being funded. Instead of foundation staff deciding everything, participatory models involve:

• Community leaders
• Grassroots organizations
• People with lived experience
• Social entrepreneurs working on the ground

These stakeholders may help:

• Set funding priorities
• Review proposals
• Decide which organizations receive grants

In other words, the people closest to the problem help decide how funding should be used. Researchers describe participatory grantmaking as a social innovation in philanthropy because it reverses traditional power structures and creates more collaborative funding systems.

Why Foundations Are Moving Toward Participatory Grantmaking

Several criticisms of traditional philanthropy have pushed foundations to experiment with more participatory approaches.

1. Traditional grantmaking can reinforce power imbalances

Historically, foundations have been criticized for concentrating decision-making power among wealthy donors and professional grantmakers. This can result in:

• Funding priorities disconnected from community needs
• Overemphasis on professional grantwriting skills
• Smaller grassroots groups being excluded

Participatory models attempt to rebalance that power

2. Communities often understand problems better than funders

Local leaders and nonprofit organizations often have deep knowledge of their community’s challenges and potential solutions.

Participatory grantmaking recognizes that these individuals may be the true experts, even if they don’t have advanced degrees or large development teams. For grant seekers, this shift means:

• Lived experience is increasingly valued
• Community credibility matters more than polished proposals
• Funders are listening more closely to grassroots voices

3. Traditional grant applications exclude many nonprofits

Many foundations unintentionally fund organizations with the strongest grantwriting teams rather than the most effective programs.

Research shows that organizations with professional grantwriting departments have a significant advantage in competitive funding environments. Participatory models try to reduce this barrier by:

• Simplifying applications
• Funding trusted organizations directly
• Emphasizing relationships over paperwork

What Participatory Grantmaking Means for Grant Seekers

For nonprofits using platforms like FindGrant.ai, participatory grantmaking offers several strategic advantages.

1. Relationships Matter More Than Applications

Participatory funding often prioritizes trust and long-term relationships over formal proposal processes.

In many programs, funders already know the organizations they support through community networks. Practical tip:

• Build relationships with foundations before applying
• Attend convenings and listening sessions
• Connect with program officers and community advisory boards

2. Storytelling Can Be More Powerful Than Metrics

Participatory funders often use stories and qualitative impact reports rather than rigid metrics. Organizations frequently share results through:

• community narratives
• social media updates
• impact stories

These storytelling approaches help funders understand the real-world impact of programs.

Grant strategy tip: Instead of only presenting data, include:

• Stories from beneficiaries
• real-world examples of change
• testimonials from community members

3. Community Leadership Is a Competitive Advantage

Participatory grantmaking emphasizes community-driven leadership. Funders increasingly ask:

• Are community members involved in program design?
• Do people with lived experience guide decisions?
• Is the organization embedded in the community it serves?

Organizations that demonstrate authentic community partnerships often stand out

4. Flexible Funding Is Becoming More Common

Participatory models often provide more flexible grants. Instead of tightly controlled budgets, funders may allow organizations to:

• pivot strategies as needs change
• allocate resources locally
• adapt programs in real time

This flexibility can dramatically improve program effectiveness.

How FindGrant.ai Helps You Identify Participatory Funders

Not all foundations use participatory grantmaking—but the number is growing. Using tools like FindGrant.ai, nonprofits can identify foundations that:

• prioritize community engagement
• support grassroots organizations
• offer trust-based or participatory funding
• provide flexible grantmaking structures

Key signals to look for in grant opportunities include:

• “community advisory boards”
• “participatory grantmaking”
• “community-led funding decisions”
• “trust-based philanthropy”
• “grassroots leadership”

These keywords often indicate funders experimenting with new approaches.

The Future of Grantmaking

Participatory grantmaking is still a relatively small part of the philanthropic ecosystem.

But its influence is growing.

Foundations are increasingly experimenting with:

• trust-based philanthropy
• community-led grant panels
• participatory budgeting
• collaborative funding models

These innovations aim to make philanthropy:

• more equitable
• more responsive
• more effective at solving complex social problems

For nonprofits and social entrepreneurs, the takeaway is clear: Grantmaking is evolving—and organizations that embrace community leadership and authentic engagement will have a growing advantage.

Final Thoughts

The best grant strategy today isn’t just writing better proposals. It’s building:

• stronger community partnerships
• deeper trust with funders
• clearer stories about your impact

Participatory grantmaking shows that the future of philanthropy may belong to organizations that share power with the communities they serve. And the earlier your organization understands this shift, the better positioned you’ll be to secure funding

Looking for grants aligned with your mission?
Find the right opportunities faster with FindGrant.ai, your AI-powered platform for discovering funders, analyzing grantmakers, and strengthening your applications.