Effective Giving: The Nature of Grant Risk in Australian Foundations

This study explored how grant-makers experience risk in their funding decisions. It found that the ability for grantees to execute their interventions was a key concern for foundations, as well as the foundation's own ability to reliably evaluate the drivers of success for any grant made. To mitigate the impacts of such risks, foundations utilise a number of techniques, including information verification, staged funding and funding flexibility. Herein, the study highlighted key themes of informational deficiencies and an increasing role of foundations in solving society's problems. The study has developed a useful framework that matches foundation characteristics with grant risk management considerations, which can provide grant-makers with tools to lift confidence in their funding decisions.