For more than 20 years, I served as the executive director for a leanly staffed foundation with deep roots in a small city in upstate New York. The Troy Savings Bank Charitable Foundation, the philanthropic legacy of a community bank founded in 1823, grew substantially after the bank’s acquisition by another financial institution in 2004. That transition launched the foundation into a long learning curve, one we’re still navigating today. Over the years, we’ve continually tested and refined our grantmaking programs based on community input, evolving as we went along.
Reflecting on What Works
As I approach retirement, I find myself thinking about the effectiveness of our grantmaking programs. One initiative stands out as both a learning opportunity and powerful tool for impact: the What If Mini-Grant Program. Although this participatory grantmaking program represents only $50,000–$75,000 of our annual $600,000 grant budget, it has had a significant effect on our community.
The Inspiration Behind the Program
We borrowed the concept—with permission—from a fellow Exponent Philanthropy member, the Rosamond Gifford Foundation in Syracuse. While our version shares some similarities with theirs, it also has some unique elements. At its core, the What If program encourages individuals and small organizations to propose ideas that strengthen their communities.
Grants are capped at $5,000, and funding decisions are made not by the foundation’s board of directors but by resident review committees. These committees, usually seven to nine members, are composed of prior grantees who bring firsthand experience of moving a What If project from idea to implementation.
Building Community Engagement
Because individuals cannot apply directly to private foundations for funding, the success of the What If program depends on the willingness of larger local nonprofit organizations to serve as fiscal sponsors for applicants. At times, our foundation steps in to facilitate this “matchmaking,” connecting smaller community projects with established nonprofits willing to partner with them.
Although an individual may submit an application on behalf of a community project, they must include a list of their project team members. One of the program’s key goals is to foster deeper community engagement, and the strongest proposals come from teams of volunteers working together to bring their ideas to life.
The Value of the What If Grantmaking Program
The What If Mini-Grant Program delivers value in three key ways:
1. Community Insight
This program provides the foundation with a deeper understanding of community challenges and opportunities than we often gain through traditional responsive grantmaking. By inviting individuals and small nonprofits to apply for funding, we hear directly from those closest to the issues. For example, approved grant requests for American Red Cross “Stop the Bleed” and CPR training helped us identify neighborhoods well-positioned for community organizing around gun violence prevention. Similarly, requests to establish hygiene product pantries highlighted the need for greater access to personal care and household supplies.
2. Leadership Development
The What If program builds leadership and project management skills among community members. Applicants must demonstrate their ability to carry out their goals through detailed planning and proposals, strengthening their fundraising, planning and execution abilities. Members of the resident review committee also gain valuable experience, learning to evaluate, rank, and make difficult decisions about which initiatives to fund.
3. Collaboration
The program fosters collaboration between larger nonprofit organizations, which serve as fiscal sponsors, and grassroots leaders or very small nonprofits. These partnerships often lead to mutual learning and new relationships that might not have developed otherwise.
Managing Fiduciary Responsibilities
A common question about participatory grantmaking is how to manage fiduciary responsibilities. Specifically, how can resident review committees make grant decisions while ensuring the foundation board remains informed and in agreement?
At our foundation, we address this in two ways:
- Board Authorization: Each year, the foundation board approves the program’s total funding allocation, geographic focus, and funding priorities.
- Grant Review Process: After each community review meeting, the executive director emails the board a list of recommended grants. Board members then have one day to approve or raise concerns.
To date, the board has never rejected a committee-approved grant. In our experience, committee members take their responsibilities seriously and their decisions are thoughtful and well-supported.
Why Participatory Grantmaking Is Worth It
Participatory grantmaking can feel intimidating or complex to implement, but our foundation’s experience shows it is well worth the investment of time and effort.
If I could offer just one piece of advice to other lean funders before I ride off into the retirement sunset, it would be this: consider adding participatory grantmaking to your philanthropic toolkit. There are many ways to structure participatory grantmaking, and all of them can provide valuable learning and make a meaningful impact on your community.
About the Author
Leslie Cheu recently retired as Executive Director of The Troy Savings Bank Charitable Foundation and The Troy Savings Bank Music Hall Foundation. A dedicated advocate for the Capital Region’s nonprofit sector, she has led numerous community initiatives and overseen major historic preservation projects at the Music Hall. She holds a BA from Northwestern University and an MBA from the University of California, Berkeley.