Grantmaking 101 | In Partnership with Scotland Funders’ Forum | 25 February 2025
On 25 February SGM hosted Grantmaking 101, a panel session focussed on the operational aspects of grantmaking and a forum for discussions on best practice and methods to improve procedures. We were delighted to also welcome colleagues from Scotland Funders’ Forum to this event.
Present:
Hazel Anderson, NHS Tayside Charitable Foundation
Andrew Biggart, The Cobber Charitable Trust
Tom Black, SSE Plc
Nicola Brownrigg, The Cobber Charitable Trust
Matthew Bruce, SGM Assistant Co-ordinator / WS Society
Iain Clarke, Inspiring Scotland
Brynley Davies, The William Syson Foundation
Elaine Dodds, Fife Health Charity
Alison Donaldson, The MacRobert Trust
Nancy Doyle-Hall, Virgin Money Foundation
Lisa Duthie, NHS Grampian Charity
Craig Dutton, Capital City Partnership
Henry Elliot, Binks Trust
Nicholas Ferguson CBE, SGM Trustee / The Kilfinan Trust
Sarah Gilmour, Hymans Robertson Foundation
Stuart Glen, The Scottish Forestry Trust SCIO
Val Hendry, Zero Waste Scotland
Melanie Hill, ScottishPower Foundation
Tobias Jung, The Centre for the Study of Philanthropy & Public Good, University of St Andrews
Panel:
Tom Baughan, Corra Foundation
Verity Caiger, The National Lottery Community Fund
Ali MacLachlan, SGM Chair / The Wood Foundation
Gareth Morgan, The Paristamen Charity
Leona MacDonald, BoS Foundation
Laura Martin, Perth and Kinross Council
Richard McIntosh, NHS Tayside Charitable Foundation
Sophie Mills WS, SGM Co-ordinator / WS Society
Calum Mitchell, The Fyrish Foundation
Fiona Mould, Foundation Scotland
Stewart Murdoch, The Alexander Moncur Trust
Linda Phillips, Foundation Scotland
Mary Porter, KPE4 Charitable Trust
Fiona Russell, The Gannochy Trust
Ami Slokan, The Gannochy Trust
Lynda Stephens, Zero Waste Scotland
Claire Stone, Newark Trust
Blair Thompson, SGM Trustee / The Northwood Charitable Trust
Andrew Tweedy, RSSWS
Ailsa Watson, Future Woodlands Scotland
Hazel Wotherspoon, The William Syson Foundation
Sarah Wright, Agnes Hunter Trust SCIO
Karen Wright, Fife Health Charity
Our panel of speakers represented a wide range of different grantmakers. Gareth Morgan Chairs The Paristamen Charity, a small, Trustee-led grantmaker; Verity Caiger leads a team within The National Lottery Community Fund which offers long-term funding of approximately 2-10 years with grants of at least £500,000; and Tom Baughan is Head of Grants at Corra Foundation which offers many types of grants from very small to very large. Below is a summary of the panel’s discussion as well as a recording accessible on SGM’s YouTube channel.
Setting eligibility criteria and supporting applicants
When setting eligibility criteria, the panel considered the issues presented when that criteria was too wide. While it may appear more helpful to allow a wide scope for applicants: funding criteria which is too broad can often lead to issues. A reduction in success rates should be avoided. When setting eligibility criteria, the narrower the better.
Applicants should be supported as much as possible through the application process: communication is key. To manage expectations, the National Lottery Community Fund has introduced multiple stages to some application processes to ensure applicants are properly tested and supported throughout. The level of support, however, will depend on individual grantmaker’s capacity but the panel have found it to be a positive investment.
The Paristamen Charity aims to have a 30-40% success rate for its applicants which is aided by having a clearly defined edibility criteria. Grantmakers should seek to support the charitable objectives of applicants and recognise the challenges they face. Publicity is an important and positive investment which grantmakers can make. A clear website, even if basic, will support applicants through their process.
Grantmakers do not need to wait for applicants to approach them, with targeted applications being a useful part of Corra Foundation’s work. The Foundation often works on joint ventures with the Scottish Government which has a clear idea of the communities and organisations it wants to support.
Collaboration within the sector
Grantmakers and fundraisers should not operate in isolation. In the interests of everyone’s resources and time, the panel reflected on the importance of collaborating to ensure positive outcomes across the sector. The National Lottery Community Fund aims to have a discussion with applicants before they commit time to the application process. There is a suite of online resources and live webinars for applicants to study; but grantmakers do not need sophisticated online resources, a simple email or phone call can make a significant difference for applicants’ experience. The benefit for grantmakers is that less time will be spent on applications which do not fit their objectives or eligibility criteria. Fundraisers will be able to devote time to applications with a reasonable success rate.
Grantmakers, particularly small funders, should aim to work with local authorities and representative groups to publicise their available funds. It can be hard for grantmakers to know where their potential applicants are based and searching for funding, so it is a worthwhile exercise to ‘market’ funding opportunities as widely as possible. Gareth Morgan considered it to be particularly important for specialist funders like The Paristamen Charity.
Trusted grantmaking
Trust should be at the centre of grantmaking activities. The Paristamen Charity, for example, took the decision to award mainly unrestricted funding to its beneficiaries, noting that this removes difficult questions and discussions around what can and cannot be funded. Often applicants will know exactly what funding is needed for but may struggle to communicate this to funders.
The question of core costs is one which grantmakers are continually assessing, especially with the ongoing pressures on charity finances. Gareth raised the important question of defining what constitutes a core cost, with different accounting procedures often producing different results. This can lead to inefficiencies and missed opportunities. Grantmakers should always consider the context in which their beneficiaries are operating, which will help them decide whether restricted or unrestricted funding is best.
Impact reporting can be a difficult balance to achieve. Using the a trusted grantmaking approach, funders should utilise publicly available information as much as possible and reduce heavy expectations of detailed impact reporting, which can often be a significant ask of beneficiaries.
Diverse voices in grant consideration
The grant consideration process can be greatly improved by diversifying the voices present when deciding who should get funding. Verity Caiger noted that The National Lottery Community Fund has recruited Youth Voice Advisers who can represent the needs of young people who will benefit from properly distributed funds.
Grantmakers which rely on the Trustees to make decisions on who should receive fund could find themselves missing certain voices. As always, a diverse and talented Board of Trustees will help mitigate this risk. The Paristamen Charity was able to recruit new Trustees from individuals who had previously received funding from the charity. This targeted recruitment process has helped bring in new voices who have an interest in the work of the grantmaker.
Tom Baughan explained that the Corra Foundation also relies on individuals with lives experiences to diversify its grantmaking processes. When considering specialist advisory panels, grantmakers should ensure fair renumeration and training, making sure their personal or professional lives are not impacted by their involvement.
Collaboration amongst grantmakers
The panel concluded by considering collaboration amongst grantmakers. There was a general consensus that where grantmakers can work together, they should, sharing best practice and procedures if possible. With external pressures continuing to be exerted, the sharing of these burdens will help both funders and applicants.
Scottish Grantmakers will continue to facilitate collaboration and learning to meet these aims.
Grantmaking 101 will continue later in 2025 with a focus on strategies for grantmakers.