Philanthropy continues to move towards prioritising community trust. Combining microgrants (very small, targeted sums) and trust-based philanthropy is a recipe for agile, equitable and community-guided impact.
Microgrants channel funds quickly to local causes with minimal bureaucracy, while trust-based principles reorientate grantmaking around partnership, flexibility, and respect. This contrasts the traditional, top-down approach and the strict proposal requirements and oversight that’s often involved. The process is, instead, human-centred.
In this article, we’ll explore how microgrants and trust-based principles help underserved populations, and how technology can support funders to efficiently manage these initiatives at scale.
How Trust-Based Philanthropy Empowers Grantees
Trust-based philanthropy (TBP) is a donor ethos and set of practices that prioritises equity, relationships and shared power. Funders honour grantees’ expertise rather than control solutions, trusting them to know what’s best for their communities. The approach reduces administrative barriers and increases accessibility for organisations that might otherwise struggle with traditional processes.
Key Practices of Trust-Based Philanthropy
As stated by the Trust-Based Philanthropy Project, there are six key practices underpinning this framework; however, TBP is supposed to encompass everything an organisation does, including ‘culture, structures and leadership’.
1. Flexible Funding
The activity of nonprofits can be unpredictable and warrants flexibility. Providing multi-year, unrestricted grants helps awardees to be agile and direct funds to where they’re needed most each year. It enables them to respond effectively when things change, rather than be confined within a plan that’s no longer relevant and requires a lot of paperwork to adjust.
One place to start when introducing flexible funding is to examine your portfolio to see whether existing grantees are having to reapply every year, even when you’ve funded them for multiple years already. Since you likely already trust these grantees, it may be the next logical step when switching to a trust-based model.
2. ‘Do the Homework’
This principle is about funders being proactive in getting to know potential grantees because, traditionally, it was the applicants that had to do all the work. In some cases, it can be difficult for them to even get invited to submit proposals. Again, TBP focuses on mutuality, collaboration and shared power, which this step supports. It also takes the pressure off of smaller initiatives with limited resources or networking know-how.
3. Simplify and Streamline the Paperwork
Minimising bureaucracy is fundamental in TBP. When grantees operating at a small scale have to spend time completing hefty applications or burdensome reports, their attention is directed away from the vital work they’re doing. Their progress and productivity is stifled.
Funders often ask themselves what degree of paperwork is truly necessary – that truly contributes – and eliminate anything that’s not. Any paperwork that is required should be straightforward, easy to understand, and free of jargon. Support should be readily available to grantees if they have any questions. Some funders with a TBP approach go as far as to require verbal reports only. (Whatever the case, the less unnecessary documentation, the less there is for your team to review - a win-win situation.)
4. Be Transparent and Responsive
Transparent communication is central to mutual trust. Funders need to make it clear in writing what they can and cannot fund, and be open about decisions and decision-making processes. Being responsive to grantee communications in a timely manner is also key to establishing trust, demonstrating that you value and respect their time.
5. Seek Feedback and Act on it
Again, TBP is about trusting grantees’ first-hand experience and knowledge; therefore, being proactive about feedback is the logical next step in establishing trust-based relationships and mutuality. In cases where you can’t implement their suggestions, clearly explain why. If stakeholders spend significant time or need to travel to give feedback, consider compensating them.
6. Give Support Beyond the Money
Supporting capacity building and leadership development are important for the organisation’s long-term performance and impact. What might this look like in practice? It can include things like providing mentorship, introducing them to other funders, promoting their work, providing meeting space, or helping them access professional services.
The Results
These practices have proven to yield measurable results. For example, an analysis of participatory funding reported that trusting grantees led to better-aligned priorities, better investment decisions, and even attracted additional funding to the field.
Grant makers are paying attention; as stated by the Trust Based Philanthropy Project, the number of funders that consider themselves champions or supporters of TBP almost doubled between 2023-2024.
In addition, their 2024 survey of 600 grantmakers revealed that, since 2020, 70% of them had introduced or increased unrestricted grants, 74% had streamlined applications, 71% had simplified reporting requirements and 77% had provided support beyond the funds.
Microgrants: Small Grants with Big Potential
Microgrants are very small funding awards, often just a few hundred to a few thousand pounds. By their nature, they reach underserved or overlooked communities and they do so quickly.
Examples of Microgrants
The Human Rights Foundation has given microgrants to activists challenging tyranny in more than 30 countries. Projects include providing virtual education for girls in Afghanistan, raising awareness of the stories of imprisoned Tajik journalists, and exposing systematic repression in Venezuela.
In the UK, Arts Council England provides libraries (including school and prison libraries) with grant funds of £1,000-£5,000 to support small community projects or the early phases of larger initiatives. The purpose of these grants is ‘to build capacity and confidence within the sector to apply for larger sums of investment’. They emphasise a ‘straightforward application process and light-touch reporting’.
A prime example of how microgrants can uplift communities is through U.S.-based Social Health Labs. Each month, grants of $1,000 are given to individuals leading neighbourhood projects that enable connection and tackle isolation.
Key Characteristics of Effective Microgrants
Drawing on emerging best practices, funders can take specific steps to make a microgrant initiative effective and inclusive.
Ensure a Low Barrier to Entry
Keep applications simple and brief and ask about only what you truly need to know. Ideally, applications should be short enough that even first-time groups can apply without professional grant writers. Using plain language and multiple submission formats (text, video, audio) can further widen access.
Turn Decisions Around Quickly
Commit to a fast timeline; for example, a few weeks from application deadline to funding. This urgency shows applicants that you take their work seriously and you trust them enough to not do excessive vetting for small sums of money.
Ensure Clear, Focused Scope
Although small, each microgrant targets a specific aim or community. For example, one project funded by the Arts Council’s library microgrants helps 7-8 year olds in Darlington that were affected by the pandemic to develop literacy skills through book gifting.
Communicating your mission up front ensures that small grants are concentrated where they will do the most good. Defining clear themes also makes it easier to track outcomes.
Invest in Relationships and Support
Microgrants succeed when funders build genuine connections with grantees. In fact, research has shown that grantees feel more motivated to deliver on their projects when they feel heard and respected.
As such, it’s important to stay in contact with recipients after the award is given, even when there’s no official reporting required.
Providing extra support is also key, such as training, mentoring and the other actions we mentioned about non-monetary support in TBP.
Using Grant Management Software for Scalable Microgrant Programmes
A well-designed microgrant programme – combined with trust-based values – can ignite grassroots innovations that might not otherwise have the opportunity to get funding. But scaling this approach across many communities requires the right infrastructure.
Funding management software plays a crucial role in making this model practical; it provides a single solution that's built to improve efficiency across the full grant lifecycle. Here are some ways it can help.
Streamlined, Customisable Workflows
Modern grant management systems streamline and organise workflows so that administrators can efficiently process hundreds of small grants while staying true to a trust-centred approach. These systems are designed to scale, while manual processes would fall apart trying to manage such workloads.
To give a specific example, Flexigrant allows users to effortlessly create application forms and re-use questions stored in the question bank. Workflows can also be customised according to the needs of each organisation.
Centralisation with Online Grant Application Software
A cloud based grant management system centralises all information: applications, budgets, reports, and so on. This enables collaboration among team members and even with external reviewers.
Audit trails are built in, so every decision and disbursement is logged for transparency. With such a system, there’s no need to worry about lost documents and data, nor waste time looking for them.
Budgeting and Financial Management
When hundreds of small grants are being processed, you need an effective way to plan and track all transactions. The best grant management software provides tools to track funding allocation in real-time.
Supporting Low-Burden Processes
Systems such as Flexigrant allow organisations to create straightforward application processes and accept many file types so that applicants can reuse content they already have, reducing the admin required of them. Mobile-friendly submission portals enable busy individuals to apply from their phones.
Reinforcing Trust-Based Commitments
Tools like Flexigrant’s built-in CRM system makes it easier to communicate with grantees in a timely manner. Staff then have a record of every conversation in an easy-to-access location.
Conclusion
Microgrants and trust-based philanthropy together offer a scalable model for inclusive impact. Giving small amounts of money to those closest to a problem – with minimal strings attached – means funders can spark innovation in communities that are often overlooked by traditional grants.
Combining this approach with trust-based principles means putting faith in grantee expertise. It involves simplifying procedures, communicating openly, and investing in grantee relationships.
Grant management software makes this model efficient and sustainable. It streamlines the admin, tracks disbursements and impact, and lets both funders and grantees focus on the work that matters.
To learn more about how Flexigrant can help you fulfil your mission, contact us today.