Small Grants are vital to strengthen rural Australia

Insights, 1 November 2023

By Jill Karena, Place Portfolio Lead

Philanthropy invests significantly in communities by making grants right across Australia. In FRRR’s case, we are focused on supporting remote, rural and regional communities, especially grassroots organisations that often can’t access traditional philanthropy. However, there is no one-size-fits-all solution, which is why we offer a range of programs – some where we work deeply over multiple years through place-based initiatives to build the capacity of a group of local not for profits, and others where we work broadly through our small grants programs – offering up to $25,000, although most are around $10,000.

These small grants programs are our most in-demand which are well suited to co-funding approaches that enable collective contributions to achieve more together and create leverage for funders and communities. While not always ‘sexy’, the needs met through these grants address areas of disadvantage and basic quality of life in communities with little visibility to funders and policymakers. They range from upgrading toilets and kitchens, which improves accessibility of community facilities, to installing air-conditioners to manage climate extremes, and seed funding new ideas to stimulate new approaches to volunteering, health services, and disaster preparedness. Moreover, their value goes far beyond the dollars themselves. From more than 20 years of experience, we can safely say that in the case of many grassroots community groups, small is good.

Valuing community connection between generations: Arts Deloraine’s WinterFire 2023 Festival was awarded $25,000 from the Strengthening Rural Communities 2022 Flood Recovery Fund.

Small grants, big impact

By their very nature, small grants are simpler to navigate and have lower barriers to entry, making them more appealing to a wider range of organisations. Some grant programs, like FRRR’s Strengthening Rural Communities, also offer expert support by phone or email, making the process even easier.

Small grants can be the straightforward and friendly ‘front door’ through which grassroots organisations can step to build their capability, connect their community and navigate and drive change. In fact, for many communities experiencing disadvantage, small grants are one of the few ways that they can get the resources and opportunities to launch new ideas or approaches in their communities. And they deliver far more than just money.

Dipping a toe in, learning as they go

For communities that have not applied for funding before, small grants build their experience and confidence in developing project ideas, applying for funding, project management, budgeting and meeting reporting requirements. In the last 12 months, more than a third of Strengthening Rural Communities grant applicants (503 organisations) were first time applicants.  Even if they aren’t successful the first time around, constructive feedback, such as the detailed information we always offer to unsuccessful applicants, can give them the confidence to apply again.

Biting off just what they can chew

Many communities are great at developing a long-term vision for their community that might focus on local services, economic development, environmental sustainability or climate change adaption but much as they’d like to do so, it’s simply not possible to achieve everything at once. Small grants enable a community to tackle making those big changes one project at a time. This supports them to make incremental progress against their long-term goals, while the lower scrutiny and risk associated with a small amount of funding can be less anxiety-inducing for organisations who are new to grant seeking.

Attracting more funding

Securing their first small grant is a pivotal moment for an organisation. It’s not just about funding support – it is also a recognition of the value of an organisation’s work and its ability to contribute to their community’s future. Once they’ve been successful, it’s often a catalyst for aiming higher and developing self-belief and self-reliance to create positive change in their community.

Demonstrating that they can successfully manage their first small grant and deliver tangible results builds an organisation’s credibility and can help open the door to securing larger grants to scale-up their project or take on a more ambitious idea. Often, it’s also the vote of confidence that other donors need to see to also come in and support the group’s work.

Getting to work sooner

Small grants usually have shorter application and approval timelines and offer more flexibility to enable communities to tailor projects to meet local priorities and needs, or quickly respond to unexpected disasters and other shocks. Smaller grants also usually come with fewer restrictions and reporting requirements compared to larger grants, which can often make it easier to negotiate with the funder to adapt their project if conditions change.

Finding and piloting local solutions

The flexibility of small grants also encourages communities to experiment with local problem solving, potentially sparking new approaches that are scalable or portable to other communities. Often small grants are seed funding to pilot locally generated or adopted ideas that are not of interest to larger grant programs. Using small grant funding to demonstrate the viability of a community idea can generate the evidence needed to secure larger grants or other support to bring the idea to reality.

“Thank you so much for providing the funds for this grant. This renovation has given Council initiative to support the Toy Library by maintaining the building so we can provide an inviting space and nurturing space for the community. The Toy Library has had many, many years of dedication by passionate volunteers to support and nurture the children of Tamworth and I think it deserves it!

When I started as president the library looked awful and didn’t reflect the commitment, love and pride that our small but dedicated group deserved. Now I feel like our space reflects our organisation. An important community organisation that cares and values the children, parents and carers of Tamworth and feels that learning through play is core to a child’s life and development! Another positive change is that the renovations have been a catalyst for council to complete much needed (and much requested) maintenance on the building by fixing gutters, replacing doors and cracked tiles and replacing the old sink and toilet.”

Tamworth Toy Library Incorporated

Connecting the Community

Fostering unity by recovering together and increasing tourism: Performers at WinterFire 2023, Deloraine, in Tasmania.

Small grants also offer a reason for different groups in the community to work together to develop and deliver projects that are meaningful and manageable. When community members, other community organisations and Local Government see the results from a small grant project that makes their community better, it is a great morale booster, and they are more likely to be motivated to get involved in future community initiatives.

“The event’s success lies in its ability to bring the community together, boost the local economy, and celebrate cultural heritage. The event provided a platform for residents to come together after the floods, share their experiences, and rebuild social connections. Through artistic workshops, events, and exhibitions, community members bonded over shared creative experiences, fostering unity and a sense of belonging.”

Arts Deloraine – festival / youth workshops (flood recovery)

Building local capacity

It’s not just the mere fact of offering smaller-value grants that makes an impact. It’s what those grants fund that also helps to build local capacity, especially in small communities or where a new group has formed. For example, many of the grants FRRR funds are about helping groups build their own capacity – whether that’s the likes of governance training or strategic planning support.

“The grant received for strategic planning has paid for itself many times over. We had members who had ideas in their head but didn’t know how to plan or implement them. Since receiving the grant, we’ve been able to increase attendance of our market to over 5000 visitors in November 2021! We’ve also been able to provide free stalls to local community groups to increase their outreach. This also has a flow on effect to small businesses in the town. The pub is booked out for lunch, little local businesses thrive due to the amazing success of the market.”

Rotary Club of Kinglake Ranges

Bigger is not always better

This image has an empty alt attribute; its file name is Photo-10-8-16-7-53-47-pm-scaled.jpg
The Rotary Club of Kinglake Ranges was awarded $1,100 through the Community Group Futures Program. This funded governance training to improve management and support of local community groups.

Often, we hear suggestions that larger grants are better – but the reality is that many of the most deserving groups in the smallest and most remote locations simply will not – or indeed simply are not able to – apply for many of those grant opportunities.

While it’s great to see larger grants made available to communities, especially through Government programs, it is critical that we not lose sight of how important small grants are in strengthening capability and capacity in remote, rural and regional communities. Small communities, as you might guess, are, well… small! This can make it hard to compete with larger communities, especially when it comes to demonstrating measures of impact which funders often ask for – small communities can’t point to economies of scale or large numbers of beneficiaries.

With fewer people to draw on, volunteers are often stretched and there are less likely to be paid resources or an experienced grant writer to chase high-value grants or manage large-scale projects. Groups often won’t apply because they don’t have the capacity to meet the reporting requirements or to manage the other governance expectations, such as the frequency of reporting or detailed probity plans. Even the prospect of managing large sums of money can be scary for a first-time grant applicant and some small communities can find it simply overwhelming!

What makes small grants so impactful in rural and remote Australia is their flexibility and relative simplicity, which means they’re more accessible and attractive to those communities that don’t have the resources to wrestle with the complexities of large grants. So we urge all those who are working so hard to grow the funds that are directed via the social sector to make sure that small grants continue to be a key stream of funding. If you’re funding large grants, consider coupling that with some smaller grant funding as well – they may well become organisations you’re able to fund in the future. Or, if you’re funding with a very tight focus, consider how small grants with more flexibility may bring unexpected pathways to that impact. Of course, we always welcome more partners for our collaboratively-funded Strengthening Rural Communities program, so get in touch if you’d like to know more.

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Amy Crawford

Amy Crawford has an extensive career in complex public policy and its intersection across government and communities.

Amy is the Chief Executive Officer at the Australian Local Government Association (ALGA), representing 537 councils across the nation. Amy holds over 20 years’ experience in the Australian Public Service. She has a deep understanding of federal government policies and structures, with over 10 years’ service in the Department of the Prime Minister and Cabinet and has worked for the federal Minister for Regional Development, Local Government and Territories. Amy has shaped a wide range of policies and programs including regional development, telecommunications, immigration, emergency management, social policy and pandemic preparation.

Amy is a Board Director of Austroads and represents ALGA on the Public Skills Australia Industry Advisory Group, and the Australia-New Zealand Emergency Management Committee. She is also a Board Director for the Canberra Youth Theatre which provides voice for Canberra’s youth through intelligent and challenging theatre.

Amy holds a Bachelor of Laws (honours) and Bachelor of Arts (Media and Communications) from the University of Queensland, is a graduate of the Australian Institute of Company Directors and an alumnus of the Cranlana Centre for Ethical Leadership. Amy was appointed to the FRRR Board in January 2025.

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Kylie Hansen

Kylie brings leadership and management experience from across academic, corporate, not-for-profit, social enterprise and impact investment sectors, having deep dived into a myriad of specialisations and systems. Her six tertiary qualifications are equally as diverse and complimentary, covering commerce, politics, international development, community development, project management and law. Her breadth and depth of experience enables her to draw on a number of disciplines and innovative ways of working and thinking, and she is well recognised as consistently delivering work and services of a high quality.

Kylie uses her strong background in sustainability, governance and impact measurement to support collaborative initiatives across sectors oriented at improving social outcomes, and to support socially conscientious businesses to articulate their social impact. As founder and director at Impact Seed she has been instrumental in developing the impact measurement, evaluation, learning and ESG practice which advises numerous corporates, and is passionate about supporting First Nations empowerment particularly in the context of regional economic development.

Kylie is also a Director of the WA Social Enterprise Council, a member of the B Council (B Lab Australia and New Zealand), and a Governor of the World Wildlife Fund (WWF).

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Hon. John Anderson AC

The Hon. John Anderson AC is a sixth-generation farmer and grazier from NSW, who served in the Australian Parliament from 1989 to 2008.

He was a senior Cabinet minister in the government led by John Howard (1996 to 2005), including six years as Leader of the National Party and Deputy Prime Minister.

In the latter role, Mr Anderson played in important role in FRRR’s history, working closely with Baillieu Myer AC and others on a proposal to establish a philanthropic organisation to benefit rural Australia. The concept was discussed at the National Regional Summit in 1999 and FRRR was established shortly thereafter.

Mr Anderson currently hosts a regular podcast, where he is in conversation with thought-leaders from around the world, and is a regular media commentator.

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Regina Cruickshank

Partnerships Specialist (WA)

Regina supports FRRR as the WA Partnerships Specialist. With over two decades of experience in partnerships and marketing, she has a deep understanding of Western Australia’s social impact landscape. She brings a strong passion for leveraging purpose-built networks to create positive change.

Regina previously worked with Playgroup WA and founded a Health Promotion Charity dedicated to supporting Social Emotional wellbeing for underserved communities. She’s excited about the opportunity to connect with partners and explore ways to make a meaningful difference in WA.

She lives in Perth with her family and enjoys mindful moments of connection to Country, whether on horseback, on foot or underwater.

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Anna Palmer

People and Culture Manager

Based in Central Victoria, Anna is a senior Human Resources, Organisation Development and Industrial Relations professional, with significant private and public sector experience across every facet of people and culture leadership.

Her most recent roles have been with Don KR in Castlemaine and Mount Alexander Shire Council. She has also held senior HR roles with Victoria Legal Aid and the TAC among many others.

From Mildura originally, Anna has postgraduate qualifications in Change Management and a Masters in Organisation Dynamics.

Anna is currently completing a Bachelor of Fine Arts to balance her creative pursuits and work as an HR professional.

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Philippa Twaddle

Management Accountant

Carolyn joined the FRRR team in March 2017, and is responsible for providing executive support to the CEO, effective coordination of the FRRR office and general administrative support to the management team. A key responsibility is supporting the administration of FRRR’s Donation Account Services.

She has over fifteen years’ experience working in local government in the Tourism and Arts Sector, Civic and Event Management and Community engagement.

Carolyn has a Bachelor of Arts in Librarianship, majoring in psychology, and grew up on farming communities in Cohuna and Echuca and currently lives in Bendigo.