By Deo Mwano
Community-Led Grantmaking: Shifting Power to the People
In the grantmaking space, there has been growing momentum toward shifting decision-making power from funders to community groups. The idea is simple but powerful: community members often know the needs of their neighborhoods far better than funders do.
This approach helps ensure that grantmakers don’t overlook causes, groups, or organizations that may not traditionally be on their radar. It also addresses unconscious biases that can arise when funders repeatedly invest in the same “legacy” organizations. By centering community voices, funders can align resources more closely with real, on-the-ground needs.
At Deo Mwano Consultancy (DMC), we do not advocate for one model over another. Instead, we recognize the importance of reach, relationships, and impact. Over the years, we’ve partnered with many grantmakers to strengthen their ability to allocate resources fairly to address gaps and amplify impact in the communities they serve.
A Case Study: Putting Community in the Lead
Recently, DMC worked with two grantmakers on a project that illustrates how community-led grantmaking can work in practice. The grantmakers had set aside $100,000 to be distributed within a specific community. Rather than making those decisions internally, they asked us to study the feasibility of engaging community members directly.
Our recommendation was to create a community advisory group composed of individuals who live, work, and serve in that community. The funders agreed, and with our support, we recruited a variety of members including school administrators, teachers, public health workers, firefighters, school board members, parents, and alumni.
These individuals brought deep knowledge of community dynamics and were more than qualified to decide how funds should be allocated. They were supported by a coordinator from the grantmaking organization who helped manage logistics, deadlines, and questions, while ensuring the advisory group retained full decision-making autonomy.
Over three months, the advisory group developed funding criteria, opened the application process, reviewed submissions, and made funding decisions. At the final meeting, members arrived prepared with evaluations of each applicant. Through discussion and thoughtful compromise, they reached consensus on how to distribute the $100,000 in one-time, unrestricted grants.
As observers at the final decision-making meeting, we witnessed firsthand a process that was respectful, thorough, and deeply intentional. The group’s decisions addressed both the immediate priorities and the long-term needs of their community.
Keys to Success
The success of this project stemmed from intentional preparation and thoughtful structure:
Advisory Group Design: Selecting members who truly represented the community.
Strong Coordination: Providing organizational support without interfering in decision-making.
Clear Process: Establishing timelines, criteria, and tools for accountability.
Respect for Autonomy: Allowing the community to lead while offering facilitation when needed.
Compensation: Recognizing the group’s time and expertise with stipends or honoraria.
When these conditions are met, community-led advisory groups can make grantmaking both effective and fairly. They bring fresh perspectives, build trust, and ensure resources directly address community priorities.
Final Thoughts
Community-led grantmaking is not about replacing funders—it’s about collaboration, trust, and shifting power where it can do the most good. When grantmakers intentionally create space for community leadership, the result is greater legitimacy, stronger relationships, and more impactful outcomes.
At DMC, we’ve seen how transformative this approach can be. With the right support and intentionality, community-led grantmaking works—and works well.
The DMC Community Transformation Team brings over 25 years of combined experience, collaborating with nonprofits, cities and towns, grant makers, and other nonprofits to make a positive impact. DMC has successfully created programs and campaigns that bridge diverse communities, addressing root causes of problems and facilitating sustainable solutions.