Breaking Barriers in Grantmaking: Paving the Way for Equity

by Jon Scaccia August 28, 2024

One principle in grantmaking is gaining unprecedented attention: equity. As the U.S. Department of Labor (DOL) and other funders shift their focus toward ensuring that grants reach the most underserved communities, equity in grantmaking is not just a buzzword but a necessary evolution in how resources are distributed. The research and strategies discussed in a recent comprehensive review by Westat highlight the significance of this shift and offer practical steps to overcoming long-standing barriers.

The Need for Equity in Grantmaking

Why focus on equity? The reasons are compelling. Traditional grantmaking often favors organizations with established reputations, ample resources, and a history of receiving funds. These organizations are usually large, well-connected, and frequently led by individuals who do not represent the marginalized communities they aim to serve. As a result, smaller, community-based, and BIPOC-led organizations—those that are closest to the issues and most in need of support—are frequently left behind.

This disparity is more than just a logistical challenge; it perpetuates systemic inequities. When grants are not distributed equitably, the voices of underserved communities are silenced, and the unique perspectives they bring to solving complex social issues are lost. The DOL’s recent initiatives aim to change this narrative by making equity a core component of the grantmaking process.

Understanding the Barriers

The review identifies several barriers to equitable grantmaking. These obstacles exist at various stages of the grant process, from the design of grant opportunities to the application process, selection of awardees, and post-award monitoring.

1. Preaward Challenges

One significant barrier is the lack of input from potential applicants and the communities they serve during the grant opportunity design phase. When grantmakers design programs without considering the needs and capacities of smaller organizations, they inadvertently create opportunities that these groups cannot access. For instance, large grant sizes may be beyond the operational capacity of small, community-based organizations, while overly restrictive budgets can prevent these groups from applying altogether.

2. Application Process

The complexity of the application process further exacerbates these inequities. Long and intricate applications require substantial time and resources to complete—resources that small organizations often lack. This complexity tends to favor well-established organizations that can afford to dedicate staff to the grant application process, leaving behind those who may be most in need of funding.

3. Selection and Funding of Awards

Implicit biases among grant reviewers can also skew the selection process. Reviewers may favor organizations and proposals that align with their own experiences and understanding, often overlooking culturally relevant and community-driven approaches. This bias is compounded by the lack of diversity among reviewers, who are predominantly White and may not fully appreciate the unique challenges faced by BIPOC-led organizations.

4. Postaward Monitoring

Finally, the reporting and evaluation requirements imposed after grants are awarded can pose significant challenges for smaller organizations. These requirements often do not align with the mission or capacity of these groups, making it difficult for them to remain in compliance and continue receiving funding.

Actionable Steps for Increasing Equity

To address these barriers, the review outlines several actionable strategies that grantmakers can implement at each stage of the grantmaking process.

1. Inclusive Grant Design

Grantmakers can start by involving community representatives in the design of grant programs. This co-creation process ensures that the grants reflect the real needs of the communities they aim to serve. Additionally, designing grants with flexible budgets and longer timelines can make them more accessible to smaller, less-resourced organizations.

2. Simplifying the Application Process

Simplifying the application process is another critical step. By reducing the complexity of applications and using plain language, grantmakers can lower the barriers to entry for organizations that may not have the resources to hire professional grant writers. Some funders have also introduced two-step application processes, where a brief letter of interest precedes the full application, helping organizations gauge their eligibility before investing significant time and resources.

3. Diverse Review Panels

Diversifying review panels is essential for reducing bias in the selection process. Including individuals from a variety of racial, ethnic, and professional backgrounds can bring new perspectives to the table and ensure that proposals are evaluated through a lens of equity. Some funders are also introducing equity-focused review questions to encourage panels to consider how applicants address systemic inequities in their proposals.

4. Tailored Technical Assistance

Providing tailored technical assistance (TA) both before and after grants are awarded can help build the capacity of smaller organizations to manage and sustain their funding. This support can include one-on-one coaching, webinars, and written guides that demystify the grant application process and offer practical tips for success. And there’s a science to TA, as we talked about with Abe Wandersman a few weeks back.

5. Equity in Postaward Monitoring

Finally, revising postaward monitoring practices to align with the capacities of smaller organizations can help these groups remain in compliance and continue receiving support. This might involve simplifying reporting requirements or offering additional TA to help organizations meet these expectations.

The Broader Impact

The potential impact of these strategies extends far beyond the immediate recipients of grant funds. By ensuring that smaller, community-based, and BIPOC-led organizations have equitable access to funding, grantmakers can amplify the voices of those most affected by the issues they seek to address. These organizations bring unique insights and solutions that are often overlooked in traditional grantmaking, and their involvement can lead to more effective and sustainable outcomes.

Moreover, increasing equity in grantmaking can help build trust between funders and the communities they serve. When communities see that funders are genuinely committed to supporting their needs and priorities, they are more likely to engage with these programs and contribute to their success.

Join the Conversation

As we continue to explore ways to make grantmaking more equitable, we invite you to share your thoughts:

• What challenges have you faced when applying for grants, and how did you overcome them?
• How can grantmakers better support community-based organizations in their funding efforts?

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