Discretionary Grants: A Topical Resource List

Discretionary funds are grant funds distributed at the discretion of one or more trustees, and they usually do not require prior approval by the full board of directors. The following resources related to discretionary grants recently have been published.

Council on Foundations. Foundation Management Series. 11th ed. Washington, DC: Council on Foundations, 2004. 4 vols. xxii, 160 p.

This publication presents the results of the 2002 Foundation Management Survey, in which 722 foundations participated. The data covers governance and statistics regarding administrative expenses, and relates to independent, community, family, and public grantmaking foundations. Coverage includes issues such as trustee compensation, discretionary grantmaking, and board selection.

"Discretionary Grants: Encouraging Participation... Or Dividing Families?" Passages vol. 3 (September 2001) p. 1-8.

Draper, Lee. "Using Discretion." Foundation News & Commentary vol. 45 (January-February 2004) p. 30-7.

The author discusses the pros and cons of discretionary grants—those grants made outside a foundation’s program areas. According to the Council on Foundations, about a quarter of foundations permit this type of giving by their board members. Do these grants foster conflict or enhance board involvement? In addition to the analysis, statistics about the prevalence of the practice are included.

Gast, Elaine. Policymaking Made clear: Eleven Foundation Policies Your Board Should Consider. Washington, DC: Association of Small Foundations, 2006. 24 p. (Primer Series)

Explains that foundation boards should consider policies related to attending fundraisers, board membership, conflicts of interest, discretionary grants, investments, personnel, records retention, expenditures, travel reimbursement, trustee compensation, and whistleblowing.