By Marie Galetto-Dugoni
Do you know the difference between responsive and strategic grantmaking? Do you know which is best for your giving?
Most of the conversation around these topics is usually focused on foundations or major donors, however taking a critical look at how you give can be helpful for donors of all giving levels.
Responsive Grantmaking: the donor is solicited by nonprofits asking for funding.
For example, your alma mater may ask for donations for a program or your parish may solicit donations to raise money for a new roof.
Strategic Grantmaking: the donor gives to organizations based on a specific goal or predefined area of focus. The donor does the research of finding which organization they want to give to and may set some goals around what they hope to see in return for their giving.
For example, a donor may decide they want to focus on the issue of food insecurity in their neighborhood. The donor will find the local organizations that provide food to vulnerable communities and decide which organization(s) to support (based on whichever criteria the donor deems important).
The beauty of these two approaches is that you can (and should) do both.
The beauty of these two approaches is that
you can (and should) do both.
While almost all donors already engage in responsive grantmaking, there is no need to stop that type of giving just because you also want to begin thinking more strategically about how and where you give. Organizations will always solicit donations for one reason or another, and that’s not a bad thing! It can be a great way to learn about new projects and immediate, unexpected needs (like in the event of a disaster). Many donors set aside a certain amount of money each year for responsive grantmaking.
Responsive grantmaking tends to be the first type of giving most people experience. As time goes on, some donors become interested in developing a strategy to focus their resources on their interests and begin exploring ways to track their impact. Becoming more strategic does not need to be daunting. Technically this can be done by writing checks to organizations, but we at the Foundation suggest using a Donor Advised Fund (DAF) to streamline the grantmaking process. Opening a DAF with a partner like the Catholic Community Foundation also grants the donor access to additional resources. We regularly work with individuals and families to develop strategies for their grantmaking and impact.
If you are interested in becoming more strategic in your grantmaking, reach out to the Foundation today!