Five principles for more impactful grant-making
16 February 2026
As ACF launches a new set of funding practice guides for members, Jim Cooke, ACF's head of practice and learning, explores the pillars of stronger practice.
For most foundations, funding others is the main way they work towards their mission. How they distribute funds is more than just a process – it’s central to their impact.
It’s been six years since ACF published its landmark Stronger Foundations report on funding practices. With input from a wide-ranging group of ACF members and other contributors, it set out an ambitious framework for foundations to reflect on their current practice and consider how they could become even more effective.
Recently, I’ve been looking at what’s changed since this report was published. How has foundation practice evolved? How has the external context affected this? Which aspects of grant-making are foundations finding most challenging? How do grant-seeking organisations experience foundation funding? What new examples of excellent practice have emerged?
What I learned through exploring these questions has fed into our new set of funding practice guides for ACF members. Drawing on the latest developments, these guides build on and update the five pillars of stronger funding practice outlined in our original report.
Working towards these principles can help foundations become more impactful grant-makers.
Rather than a one-size-fits-all checklist, they are a framework for continuous improvement, encouraging foundations to ask themselves challenging questions about how they fund.
1. Focus on your mission
A foundation’s mission is the reason it exists. This will often be more sharply focused than the legal charitable objects it must work within.
By asking which funding practices best serve its mission, a foundation can think through how to:
- Balance the trade-offs involved in setting funding criteria
- Identify which types of evidence and expertise to use
- Design processes that avoid creating unnecessary hoops to jump through
- Address any negative effects of power imbalances.
2. Choose the right funding tools for the job
Grants come in many forms, which are suited to different needs.
In recent years, many foundations have recognised the benefits of giving unrestricted funding. Some have made this their default approach, only restricting grants in exceptional cases.
Some restricted grants have highly specific conditions, while others allow for significant flexibility within defined boundaries. Either way, foundations should always consider whether the restriction is genuinely needed, whether for legal or strategic reasons.
Grant duration is another key decision. Different missions can require work to be funded over different timeframes, and funding should be designed with this in mind. Third Sector Trends recently found that more foundations have moved towards longer term funding. However, there is a tension between sustaining support for longer periods and being open to funding new applicants.
Different tools can also reflect the stage of work being funded. Some grants are designed for testing new ideas or alternative approaches. Enterprise grants can be used to help organisations become more sustainable. Foundations can also further their missions through their investments.
3. Consider your impact beyond funding
Grants and investments are not the only tools available to foundations. Non-financial resources, such as knowledge, relationships or influence, can be used to enhance the impact of a foundation’s grant-making.
‘Funder plus’ describes various activities that add value to funding. Examples include amplifying grant-holders’ voices or building their capacity through access to advice or training.
It’s important to understand what kinds of support organisations really need, and who is best placed to provide it. Foundations might consider:
- Collaborating with other funders to avoid duplication in their funder plus offers
- Funding sector infrastructure to provide support more widely or sustainably
- Offering larger or unrestricted grants, which give recipients more control over how to strengthen their organisation.
4. Avoid causing harm
Foundations exist to do good, but actions can have unintended consequences. Foundations should proactively consider any potential for their practices to have negative impacts on others.
For example, they might ask themselves:
- Do we know enough about the issues, places or communities we fund to make good decisions?
- How do applicants and grant recipients experience our funding processes?
Due diligence and monitoring are essential tools for ensuring that funds are used appropriately. However, proportionality is vital. Practices that divert significant time and resources away from the work a grant is intended to support could inadvertently cause more harm than they prevent.
5. Review funding practices regularly
Stronger foundations have a learning culture that responds to feedback and allows them to adapt to changing contexts.
It’s widely recognised that power dynamics can make it hard for funders to receive honest or critical feedback. This can be mitigated, however, through anonymous mechanisms as well as by building trust through long-term relationships. Learning from grant-making peers can also help foundations reflect on their funding practices, particularly when navigating common challenges such as rising demand.
We’re here to support you
ACF members can access a wide range of opportunities to help them review their funding practices.
Our new set of funding practice guides are full of practical ideas, examples and recommended resources for getting started or going deeper into each of the principles I’ve summarised in this blog.
Members can also use our Stronger Foundations self-assessment tool or join discussions with grant-making peers through our vibrant member networks.
If you work for a UK trust, foundation or other grant-making charity that hasn’t yet joined ACF, find out more about membership. Whatever the focus of your mission, we’re here to help you strengthen your practice – so that you can better serve the causes that matter to you.
Join us