Going Grassroots: 5 Key Learnings from Community Grants  

Anyone who watches the news can agree; this current moment is overwhelming and confusing. There have been massive funding cuts to aid programs, rollbacks on diversity, equity and inclusion (DEI), uncertainty about the economy and more. Issues like housing affordability, health care, food security, disaster response and countless others are becoming more acute, and the needs across communities are rising. For those looking to make an impact, it can be challenging to understand where to begin when it comes to making meaningful change.  

As part of our work as strategic philanthropic advisors, we have the privilege of designing and managing community grants programs for both corporate and nonprofit clients. We define these grants programs as ones that provide community-level organizations with smaller grant sizes that are transformative for these groups but might be a drop in the bucket to major nonprofits operating at a larger scale. Through this work, we have seen firsthand the power of grassroots organizations that are often overlooked by traditional grantmaking structures–and we’ve found that for the right funders and philanthropists, this can be among the most meaningful ways to create impact, especially during such a turbulent time. 

These groups are deeply embedded in the fabric of their communities, responding to needs with agility and authenticity. The lessons we have learned from working with these organizations give us hope and chart a path of opportunity for philanthropy in this unprecedented moment for the social impact sector.  

1. Innovation Thrives at the Grassroots Level

Unlike larger organizations with more rigid structures, grassroots groups often operate with a high degree of flexibility and have greater capacity to take risks. Their deep connections with local populations often give them a level of trust and insight that larger organizations can’t replicate. These organizations respond directly to what their communities need, whether it’s providing immediate disaster relief, creating safe spaces for marginalized groups or pushing for policy change at the local level. Their ability to take risks means they often develop cutting-edge, grassroots-led solutions that are uniquely effective and impactful, and prioritize meeting the needs of their community, rather than top-down KPIs often set by funders. 

Borrowing from principles of trust-based philanthropy, community grantmakers should prioritize giving unrestricted funding, especially when in smaller amounts. This allows implementing partners to move money where most needed, whether that be program expenses or operational needs that allow the work to continue. 

2. Don’t Underestimate the Scale of Small Nonprofits

Another insight that has shaped our approach to community-level grantmaking is the sheer number of small nonprofits operating across the country. We recently ran a Community Grants program for organizations with annual operating budgets under $300,000. The response was overwhelming—we received over 1,000 submissions. This highlights a stark reality: there are far more small organizations out there—in great need—than most people realize. Many of these groups may only operate on minimal budgets; in fact, 88% of registered nonprofits report less than $500,000 in annual expenses, but the work they do is invaluable to their communities. A small donation, when directed to the right place, can have an outsized impact for groups like these. 

This volume of small nonprofits also speaks to a larger challenge in the grantmaking space: the difficulty of getting resources to organizations that are often too small to be noticed by larger funders—whether it be finding these organizations, properly vetting them or tracking community-based impact. However, the potential for making a meaningful difference with relatively modest resources is immense—every dollar matters and frankly means more to a smaller organization. For corporate philanthropies seeking to make widespread impact across markets with limited resources, community grantmaking is a great option. 

3. Lived Experience Should Lead the Way

Too often, decisions about funding and programming are made by individuals or organizations who are far removed from the communities they aim to serve. While well-meaning, this approach can result in programs that fail to resonate with or meet the needs of the people on the ground. 

Lived experience—whether it’s the perspective of a community member, an activist or an organizer—should be a central driver of grantmaking, both in the organizations served and in the inclusion of diverse perspectives of those making funding decisions. When those who have firsthand knowledge of the challenges and opportunities in their communities are the ones leading the charge, the outcomes are more impactful and sustainable. This approach is not just about funding solutions but also about amplifying the voices of those who have been closest to the issues and empowering them to shape the future of their communities. 

4. Impact is Greater than Impermanence

The reality is that many small organizations, despite their significant impact, may not survive in the long term. This is proving especially true as the impact of the rollback on diversity, equity and inclusion funding has disproportionately affected smaller organizations led by historically excluded communities. We have worked directly with grantees whose organizations were ultimately unable to continue operating, often due to factors like cuts in corporate donation programs or shifts in the philanthropic landscape.  

While it is of course unfortunate when an organization closes its doors, the impact of their work does not disappear when the organization ends their operations. The relationships they’ve built, the communities they’ve empowered and the systemic changes they’ve initiated continue to resonate long after their formal closure. This underscores the importance of continued investment in grassroots organizations and the need for grantmaking that prioritizes the sustainability of these groups, even when they face existential challenges—and accepting the risks of potential closure as a tradeoff for the depth of impact. 

5. Community Grants Programs are a Labor of Love

Community grants require more intensive vetting, a deeper search for high-impact organizations and the time investment of reviewing applications. While it’s easy to make fewer, bigger grants to large nonprofits, we have found that the more meaningful impact comes finding the hidden gems: the small groups that, with the right support, can have an outsized impact. 

Working with grassroots organizations often helps their case as they grow to demonstrate value to larger foundations and corporate philanthropies, who may not yet recognize the profound impact of these groups. Think of yourself as an angel investor providing seed funding to a start-up—you help bring credibility and help them build their profile that then brings in more funding. While this advocacy can be time-consuming, the payoff is well worth it, especially when these organizations receive the resources they need to amplify their work. 

Community Grantmaking is Within Reach

In this moment where large-scale challenges require bold, community-led solutions, investing in grassroots organizations is essential. Navigating community grantmaking and supporting the work of small, community-driven organizations may require a greater time and labor investment than straightforward large donations, but the work is well worth it. If your organization is interested in exploring or pivoting to grassroots grantmaking, find grassroots groups in your community and take the plunge—these organizations are the most in need and stand to make real impact in the long term.