What is grantmaking?

Grantmaking is the process of providing a grant (a sum of money) to an individual or organisation so that they may carry out activities for the common good.

In Australia, grantmaking usually refers to the provision of grants to nonprofit community organisations by philanthropic foundations and companies. Grantmaking is distinct from giving as it relates more to the process of structured giving. 

It often involves some or all the following elements: establishing a funding focus, criteria and guidelines; key dates; application forms; assessment; and formal correspondence with applicants and recipients resulting in the giving of a grant for social benefit. 

Each of these elements represents a set of considerations to weigh up, including transparency, your Theory of Change (see Measuring Impact) and the administrative burden on both applicants and funders. 

Our approach to grantmaking

The Impact Fund is Australian Communities Foundation’s flagship grantmaking program, through which we seek to shift the dial on issues of national concern. Grants are distributed through an annual grant round, as well as in response to timely issues throughout the year.

Useful resources

The following resources have been collated by our Philanthropic Services Team as useful starting points for understanding effective and responsible grantmaking.