Community-Led Funding: A Process Evaluation of Participatory Grantmaking in Practice

Abstract

Participatory grantmaking (PGM) applies participatory principles directly to funding, involving communities in determining priorities and allocations. Despite its growing use, empirical evidence on PGM implementation remains limited. This process evaluation examined a PGM pilot implemented by Healthy North Coast, a regional primary health commissioning body in New South Wales, Australia. Using a qualitative process evaluation, semi-structured interviews were conducted with implementation and delivery stakeholders involved in the design, facilitation, observation and governance of the pilot. Data were analysed using reflexive thematic analysis, guided by an evaluative framework focussing on feasibility, fairness and legitimacy, equity of participation, and contribution to learning. Five themes were identified: (1) value of participatory design; (2) funding allocation tensions; (3) emotional impact of peer competition; (4) challenges in achieving equity; and (6) capability-building and collaboration opportunities. Findings reveal inherent tensions between participatory ideals and institutional commissioning realities. While the pilot enhanced legitimacy and organisational learning, competitive elements constrained equity and substantive power redistribution. The study contributes empirical evidence on PGM in practice and offers methodological insights for evaluating participatory funding interventions, emphasising the need to assess power, equity, relational impacts and emotional dimensions alongside procedural fidelity.