Designing Grant Programs (Foundation Building Best Practice Study Excerpt)

This section focuses on the design of grantmaking programs. We explore two approaches; one involves the preparation of a strategic plan incorporating specific goals, objectives, strategies and activities. The second describes an approach in which program departments staffed by professionals had scope to develop initiatives within their own program areas and select the most appropriate mix of partners.

Example 1: A Strategic Plan
Foundation for the Philippine Environment
Example 2: A Framework for Program Design
Foundation for Higher Education (Colombia)

How Do Foundations Design Grantmaking Programs?

Summary Points

A strategic plan can provide a good framework for the design of grantmaking programs. Strategic plans are prepared with the participation of the Board and staff and involve discussions with other donors, government, partners and potential partners. They allow the translation of broad vision and mission statements into specific goals objectives, strategies and activities. In many fields the lack of reliable baseline data and indicators pose challenges in measuring progress towards achieving targets. Strategic Plans need to be periodically reviewed and adjusted. FPE prepares annual work plans and reviews progress every six months.
Program effectiveness depends on the careful integration of different types and levels of grants. A foundation program will often incorporate support for grassroots projects, research and work at the policy level. All these elements need to be carefully coordinated if maximum impact is to be achieved. for example the program can include pilot projects that test innovations at the community level, research that evaluates their results and the adoption of the proven approaches on a regional or national level.
The most appropriate partners need to be identified for each type of grant. Whether it is at the level of pilot projects, research or national networking, the foundation has to identify the most appropriate partners. It then has to ensure they have the required technical, administrative and financial support to accomplish their tasks.
Programs that seek to affect changes in public service provision benefit from the participation of all stakeholders. Foundations are well placed to involve all stakeholders in the design and implementation of program interventions. Their staff can establish strong working relationships with key actors in the government and nonprofit sectors as well as community leaders and academics. This bridging role can assure all stakeholders are "on board" in proposing needed changes. For example, FES, in seeking to enhance the quality of primary and secondary education, was able to work with civil society organizations (including parent-teachers associations), chambers of commerce and local education authorities to build more effective cooperation across sectors.

While the Board takes the lead in defining program priority areas, in some cases through a strategic planning process, the responsibility for designing and implementing the program falls to the professional staff of the foundation. The shape of the program will therefore depend to a considerable extent on the specific skills, interests and background of the senior professional staff. Foundations with clearly established thematic priorities (such as the environment, health or education) will usually seek to recruit program staff with a background and experience in the respective field. They will have the prime responsibility of identifying the types of grantees and programs to be supported. The success of the programs will depend to a large extent on their skill in building a critical mass of partners and constantly seeking ways of developing synergy between them.

In this section we look at two examples. The first is the Foundation for the Philippine Environment (FPE). This experience shows how a relatively young foundation decided early in its life to prepare a strategic plan that translated the vision and mission of the organization into specific goals, objectives, strategies and activities. The case indicates some of the benefits and challenges of this tool and examines the respective roles played by the Board, staff and partners in its implementation and review.

In the second example we return to the case of Colombia's Foundation for Higher Education (FES). We look at how a large foundation is able to develop separate departments for each program area. With specialized professional staff in each department the foundation is well placed to identify unmet needs and build strong programs to respond to those needs. It is also equipped to play a role in building the partnerships between researchers, action agencies (both government and nongovernment), policy makers and donors that are required to develop lasting solutions to critical problems.

Both cases illustrate the need to engage with government agencies in trying to improve the way they do business. Having independent sources of funding puts the foundation in a strong position in terms of influencing government programs. Particularly in the case of Colombia, there was a clear realization that pilot programs had to be designed with a view to impacting on government practices given the overwhelming role the state plays in the health and education sectors. FES because of its extensive contacts in both the government and the nonprofit sectors played an effective role as the interface between the two.