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Making grants that make a difference: Tips for good grantmaking
Whether you’re seeking funding, focused on growing your assets with smarter investment management, or wanting to expand your network of peers—we can help you move your mission forward.
If you want your giving to matter, there is no better expertise to tap into than that of the community organizations serving and creating opportunities for Torontonians. We’ve done the research by surveying, partnering with and learning from hundreds of community leaders, including during the height of the COVID-19 pandemic.
Below are 10 essential principles and tips for donors to consider in their grant making to create lasting and meaningful change.
Give unrestricted grants, based on trust
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Give unrestricted grants, based on trust
Provide funding that isn’t tied to specific projects, trusting organizations to allocate resources where they’re needed most—whether for programs or paying staff a living wage. This flexibility allows organizations to respond effectively to evolving needs.Â
Give to small and medium-sized organizations
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Give to small and medium-sized organizations
Most Canadian charities are small and carry out the bulk of vital charitable work, yet they remain underfunded while larger, more well-known organizations receive most donations. Prioritize directing support to these smaller, community-based organizations.Â
Increase your impact by giving with others
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Increase your impact by giving with others
Pooling resources with other donors, for example through giving circles, magnifies impact, allowing your combined resources and influence to achieve more than individual giving alone.
Earmark donation outside of your fund to support grassroots organizations (groups without charitable status)
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Earmark donation outside of your fund to support grassroots organizations (groups without charitable status)
Getting charitable status takes significant time, energy and money that many groups can’t spare. Yet these organizations are doing critical, community-driven work and need support—donating to them helps sustain their vital efforts.Â
Apply an equity lens to your giving
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Apply an equity lens to your giving
Ensure your giving actively addresses systemic inequality and helps redress historical and colonial legacies that affect all levels of society.Â
Make multi-year grants a regular part of your philanthropy
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Make multi-year grants a regular part of your philanthropy
When funding is limited to a single year, addressing systemic challenges becomes difficult. Multi-year grants provide stability, support long-term planning, and strengthen organizational capacity.Â
Support advocacy
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Support advocacy
Policy change takes time. Fund or engage in efforts alongside organizations for policy change and systems level shifts, not just immediate relief. Â
Spend all your annual available to grant (ATG)
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Spend all your annual available to grant (ATG)
ATG is released each April—make sure to use it fully. Remember that organizations need consistent support throughout the year, not just at year-end.Â
Acknowledge the inherent power imbalances in philanthropy
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Acknowledge the inherent power imbalances in philanthropy
Donors often hold more power than the organizations they support, but communities know best what’s needed for meaningful change. Effective philanthropy is bottom-up—sharing power, listening to, and showing up for the community.Â
In addition to your granting, consider other actions you could incorporate into your philanthropic planning
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In addition to your granting, consider other actions you could incorporate into your philanthropic planning (time, talent, allyship, treasure)
Go beyond grants: volunteer, support equity-driven businesses and social enterprises, practice responsible investing, follow the issues, amplify community voices and engage in allyship.Â