1. Home
  2. Getting started
  3. Tips for being an effective funder

Tips for being an effective funder

Updated on July 24, 2025

Supporting community projects through ActionFunder is an exciting way to drive local impact. Whether you’re funding as a business, foundation, or individual, here are some best-practice tips to help you fund effectively, fairly, and with long-term benefit in mind.

1. Be clear about your priorities

When setting up your fund, clearly define your fund by using the set criteria. A well-scoped fund leads to stronger matches and better outcomes for everyone involved.

Take time to write a helpful fund description – this is your chance to tell non-profits exactly what you’re looking for. Be specific about what you will and won’t fund, and outline what success looks like from your perspective. The clearer you are, the more likely you are to attract high quality, relevant applications from groups that align with your vision.

✍️ Tip: Use plain language and avoid jargon—most community groups don’t have professional bid writers!

2. Communicate transparently

Transparency builds trust. Be open about your expectations, decision-making process, and timelines. 

3. Be timely

Aim to review and respond promptly to matches within the timelines you have set – especially if your fund has a short timeframe. Quick responses help community groups plan and deliver with confidence.

4. Be flexible where possible

Not all community groups have full-time bid writers or dedicated fundraising teams. Being flexible with requirements and open to different kinds of impact can make your fund more accessible and inclusive.

5. Think beyond the money

Great funding relationships go beyond a transaction. Stay in touch with the non-profits you support. Use the platform’s messaging tool, visit project sites, or explore volunteering opportunities to deepen your impact.

6. Learn from each fund

Use the platform’s reporting and feedback tools to understand what worked and what could be improved. Reviewing metrics like project outcomes, demographic reach, or match rates will help you refine your strategy over time.

7. Champion the projects and non-profits you fund

Celebrate your grantees! Share their work on your website and social media, feature their stories in internal comms, and help them attract more supporters. It’s a win-win. Your impact is amplified, and they get more visibility.

✍️ Remember: Being an effective funder isn’t about being perfect. It’s about being intentional, thoughtful, and engaged. With the right approach, you’ll not only support incredible grassroots work – you’ll build lasting relationships and stronger communities.

Still have questions? Your Customer Success Manager is here to help, or reach out to us at customersuccess@actionfunder.org.

Was this article helpful?

Related Articles

Need more help?

Speak to the ActionFunder team.

Contact support