Outcomes whitepaper to guide grantmakers to effective funding

Shifting to Outcomes-Orientated Grantmaking, co-written by the chief impact officer at SmartyGrants, Jen Riley, and the organisation’s executive director, Kathy Richardson, is for anyone who’s ever asked “Are our grants actually making a difference?”, Riley says.

“And that includes government departments, philanthropic trusts, councils, intermediaries, really, anyone involved in making funding decisions.”

Richardson says the paper’s publication couldn’t be more timely. “Grantmakers are ready for a different kind of conversation about how they do their work. This paper is our way of saying it’s time to make impact central.

“It’s not easy getting started with outcomes – through this publication we’re putting down on paper all we’ve learned over two decades of working with and observing hundreds of grantmakers working across many different contexts.”

What is outcomes-oriented grantmaking?

Most grants programs have a stated aim at their core. A program might be designed to increase volunteering, improve health outcomes, enhance business opportunities, heal an ecosystem, etc. For government grantmakers, program aims usually flow from a policy document; for philanthropic grantmakers, they might arise from the stated wishes of the founder, or from a theory of change.

Unfortunately, those aims often get lost along the way as grants administrators get buried in the practicalities of building forms, attracting and assessing applications, arranging contracts and making sure funds are being spent appropriately. Outcomes-orientated grantmaking involves applying an intentional learning stance and returning to those core aims again and again, re-examining your goals, strategies and emerging knowledge to work out what is working well and what can be done better. It means considering the intended grant outcomes in every process along the way:

• In the design process. Outcomes-orientated grantmakers set out with clear, achievable and measurable aims and outcomes for their grant programs.
• In the applications process. Outcomes-orientated grantmakers seek applications from those who are most likely to help them achieve their aims.
• In the assessment process. Outcomes-orientated grantmakers assess the likelihood that applicants will help shift the dials that matter to them.
• In the contracting process. Outcomes-orientated grantmakers keep grantees focused on the overriding program goals when setting milestones, tracking requirements and reporting requirements.
• In the reporting or acquittal process: Outcomes-oriented grantmakers don’t just collect receipts, they collect information about what worked, what didn’t work, and why – they’re interested in learning, not just accounting.

This shift may seem subtle, but you should not underestimate how tricky it can be to replace a punitive or accountability mindset (if that’s the frame you’re used to) with a trusting and learning mindset. It’s worth the trouble, however.

Outcomes-oriented grantmaking empowers you to be a responsible steward of the funds you administer, ensuring your decision-making is both informed and effective.

By focusing on outcomes, you can have confidence that resources are being directed towards meaningful change, while everyone gets to learn more about what works and what doesn’t. Simply put, your money goes further.

A framework for action, not perfection

The white paper is based on the nine stages of the Institute of Grants Management’s grantmaking lifecycle, from planning and design through to evaluation and learning.

“We know this stuff is hard,” Riley acknowledges. “Attribution is messy, timelines are long, and most systems still reward activity, not impact. But that’s exactly why we need to start. The paper doesn’t pretend there’s a silver bullet, but it offers a roadmap to help you edge forward.

“You don’t have to be perfect. You just have to start.”

Riley says grantmakers with any level of experience can take something from the paper. “We’ve kept it jargon-light and honest about the challenges. We want it to be useful in real-world settings.”

Ultimately, Richardson says, the white paper is about reclaiming the purpose of grantmaking.

"We often talk about making a difference, but how often can we actually show it?

"This white paper is for anyone who’s felt the weight of that question, anyone responsible for giving away money and wondering what it’s really doing.

“Giving money away well is harder than it looks. We want this paper to help funders to focus less on headcounts and receipts, and more on learning what works. If we can build a culture where outcomes are front and centre, we’ll get closer to real, lasting change.”

Riley observes that grantmaking is very much a team effort. “It’s about building shared understanding, between funders, grantees, evaluators, communities. We need to create space for real learning, even when the answers are messy.”

The paper will be launched at the Grant Impact Forum in Melbourne on June 4.

Supporting a culture shift

Ultimately, Richardson says, the white paper is about reclaiming the purpose of grantmaking.

"We often talk about making a difference, but how often can we actually show it?

"This white paper is for anyone who’s felt the weight of that question, anyone responsible for giving away money and wondering what it’s really doing.

“Giving money away well is harder than it looks. We want this paper to help funders to focus less on headcounts and receipts, and more on learning what works. If we can build a culture where outcomes are front and centre, we’ll get closer to real, lasting change.”

Riley observes that grantmaking is very much a team effort. “It’s about building shared understanding, between funders, grantees, evaluators, communities. We need to create space for real learning, even when the answers are messy.”

The paper will be launched at the Grant Impact Forum in Melbourne on June 4.