Discretionary grantmaking is a flexible approach that allows certain individuals—typically board members, and sometimes committee members, family members, or staff—to direct a portion of the foundation’s grant dollars toward organizations or causes they personally support. This type of grantmaking gives those individuals the autonomy to make funding decisions based on their personal interests, knowledge, or community connections, within the overall framework of the foundation’s mission.
How Discretionary Grantmaking Works
Although the board is legally responsible for reviewing and approving all discretionary grants, these grants are often approved with minimal review or formal discussion, allowing for a more streamlined process compared to traditional grantmaking. This approach can help engage board members by giving them a more hands-on role and can also support a wider range of grantees that might not fit the foundation’s primary grantmaking priorities but align with board members’ values or community ties.
Discretionary grants are, by design, highly adaptable and guided by the individual discretion of those making the recommendations.