January 15, 2016

How do I decide whether or not to continue funding?

"Sustaining" refers to the decisions you will need to make once you have supported a grantee for the agreed-upon term. You will need to decide whether to renew your grant, to exit (but provide some sort of transitional support), or to exit without providing support.

Careful transition management is critical because:

  • Program area entrances and exits are signature moments—they embody a funder’s values and can create long-lasting effects.

  • It takes time to wind down current grantees and ramp up new program areas, so transitions are typically in the public eye for two to three years.

  • You have an opportunity to set grantees up for success and maintain goodwill throughout the process.

  • Your management of the transition process will affect your future grantee relationships and your ability to influence others going forward.

For more on managing the end of a funding relationship, see "The Effective Exit: Managing the End of a Funding Relationship" (GrantCraft).

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