Philanthropy with Balance: The Rise of Participatory Grant-Making

Philanthropy has the power to transform lives and communities, but at its heart lies a persistent challenge: a power imbalance between funders and those they aim to support.

As Kirsty Gannon points out in a Fluxx blog post, “one of the biggest challenges of the traditional grant-making model is the power imbalance between funders and grantees. Funders hold the purse strings, and grantees have to cater to funders’ priorities and preferences rather than pursue their mission and vision.”

This top-down approach often stifles the autonomy and creativity of grantees, limiting their ability to address the real needs of the communities they serve. In response, a growing number of funders are adopting a participatory approach to grant-making, shifting the balance of power to the people closest to the issues.

What Is Participatory Grant-Making?

At its core, participatory grant-making involves ceding decision-making power about funding to the communities the funders aim to serve. As Learning for Funders defines it, it’s “the practice of ceding decision-making power about funding – including the strategy and criteria behind those decisions – to the very communities that funders aim to serve.”

This collaborative approach allows community members with lived experience to shape funding programmes. They help define criteria, decide how resources are allocated, and evaluate the success of initiatives. Proponents argue this leads to more effective grant-making, as funding priorities are aligned with the specific needs of local communities.

Participatory Grant-Making in Action: The Camden Giving Model

One organisation demonstrating the power of participatory grant-making is Camden Giving, an independent charity dedicated to tackling poverty and inequality in Camden.

Since its launch in 2017, Camden Giving has operated as a participatory funder because, in their words, “the people who are surviving inequality are the people who can, and should, fund the solutions to the challenges facing communities in Camden.”

Each year, 50 people with first-hand experience of inequality are recruited to form grant-making panels. These teams of 8-12 individuals take charge of setting funding priorities, reviewing applications, visiting applicants, and deciding who receives grants.

To date, the charity has distributed over £6 million with the help of 200 people who have lived through the issues the grants aim to address. Camden Giving’s experience confirms the value of this model:

"We know that participatory grant-making leads to better outcomes for individuals, communities, and civil society than traditional grant-making. It ensures funding goes where it is most helpful and builds power, connectivity, and networks for individuals and communities.”

A Radical Shift for Philanthropy

Participatory grant-making is a significant departure from the traditional ways institutional philanthropy operates. But given the scale and complexity of today’s challenges—climate change, poverty, inequality—it may be exactly what’s needed.

Moving beyond the status quo requires funders to rethink their role. As Dennis van Wanrooij explains in a Grantcraft report, “Participation is not just about making funding decisions. It’s about rethinking your role as a funder and seeking community participation in all layers of your work. True participation is about supporting, learning from, and partnering with grantees.”

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