Giving Up Power: How Participatory Grantmaking Is Rewriting Philanthropy's Rules

For decades, the traditional philanthropic model has been straightforward: wealthy donors and foundation boards decide who gets funded, what problems deserve attention, and how success should be measured. But a quiet revolution is underway, challenging this top-down approach and asking a fundamental question: what if the communities most affected by social issues were the ones making the funding decisions?This shift reflects a broader transformation in how we think about economic systems and power. The concept of a "new economy" – one that moves from extraction to regeneration, from concentration to distribution – is gaining traction globally. According to the Climate Justice Alliance's Just Transition framework, this means transitioning from an economy that extracts wealth and resources to one that regenerates communities and ecosystems. In this vision, the extreme wealth accumulation that makes modern philanthropy possible would itself be questioned.Yet philanthropy isn't disappearing – it's evolving. Participatory grantmaking, where funding decisions are shared with or led by community members, has grown dramatically in recent years, with the Participatory Grantmaking Community of Practice tracking over 200 funds using this approach worldwide. This represents a fundamental rethinking of expertise and power: the idea that lived experience should count as much as, or more than, professional credentials when it comes to identifying community needs and solutions.The implications extend beyond grantmaking itself. Forward-thinking foundations are beginning to align their entire endowments – not just their grant budgets – with community wealth-building principles. Organizations like the Kataly Foundation are pioneering 100% mission-aligned investing strategies, blurring the traditional separation between philanthropic grants and investment returns. Meanwhile, innovative models like Fund Action in Europe are democratizing decision-making with an activist-led participatory grantmaking fund. But this transformation isn't easy. Shifting power means confronting uncomfortable questions about who deserves to make decisions, unlearning supposed "best practices," and sitting with the discomfort that comes when established norms are challenged. It requires acknowledging that many of philanthropy's sacred rules were never based on evidence – they were simply made up.In this episode, Kelley Buhles, Founder of Buhles Consulting, takes us through what this new philanthropy looks like in practice, the challenges it faces, and why it might be essential for building a more just and regenerative economy.For more information, visit : Buhles ConsultingParticipatory Grantmakers