Building Trust and Transparency: How Behavioral Science Can Improve the Grantmaking Process
Being an effective grantmaker is not just a question of having enough money to fund organizations. Thoughtfully designed grantmaking can make funding opportunities more accessible and equitable. This is especially true for non-profit and neighborhood-based initiatives that work tirelessly to fill resource gaps despite their limited capacity. However, when this process lacks transparency and feels overly complex, both grantmakers and grantees face significant costs in increased time, wasted effort, and undue stress.
This article will provide an overview of how to simplify grantmaking using choice architecture, an approach rooted in behavioral science that can help grantmakers center the grantee throughout the process. Embracing this technique can mitigate challenges, increase trust and transparency, encourage equitable outcomes, and ensure that investments go to organizations doing impactful work in communities where the resources are needed most.
Today, we’ll explain the common road bumps in the grantmaking process and review how the core components of choice architecture can help create a smooth journey. We’ll also demonstrate this technique’s value using a real-world example in Philadelphia, as well as reflect on how this approach can be applied across the philanthropic sector.
References
- PEAK Grantmaking. (2023, April 13). Principles for Peak Grantmaking. Retrieved October 24, 2024 from https://www.peakgrantmaking.org/principles-for-peak-grantmaking/
- Thaler, Richard (2008). Nudge: Improving Decisions about Health, Wealth, and Happiness. United States: Yale University Press. p. 6. ISBN 978-0-14-311526-7.
- The Decision Lab. (n.d.) Choice Architecture. Retrieved October 24, 2024 from (https://thedecisionlab.com/reference-guide/psychology/choice-architecture
About the Authors
Anjali Chainani, PhD
Anjali Chainani is a strategic consultant with expertise in social impact, public policy, and trauma-informed care. With over 20 years of experience, Anjali has led transformative strategic initiatives in public administration and nonprofit sectors, with a focus on policy development, program design, and evaluation.
Henry Feinstein
Henry oversees research and data work at Anavi Strategies. He supports clients with designing surveys and analyzing a wide variety of survey, administrative, and public data. As a researcher with on-the-ground experience in public service, Henry is committed to integrating data science and research methods into day-to-day governance to promote effectiveness and equity.
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