By Neb Zachariah, Fauzia Baig, and Cheryl Grove (Region of Waterloo) with Alison Homer
The Region of Waterloo is leading the way in municipal innovation by adopting a trust-based, participatory grantmaking model. This approach puts decision-making power directly into the hands of community partners and beneficiaries, centring First Nations, Inuit and Métis (FNIM), African, Caribbean and Black (ACB), and racialized communities in how funding is allocated. When implemented in 2022, it was the first time the Region had applied its Community Safety and Wellbeing Plan (CSWP) to create opportunities for social justice, capacity building, and self-determination that were driven by communities themselves.
Waterloo’s participatory grantmaking model has empowered grassroots organizations to respond to local needs in meaningful ways. It has expanded funding to equity-deserving groups, resulting in tangible outcomes, including housing supports, culturally relevant services, mental health programming, and community connections. The initiative has created 150 full-time, part-time, and temporary positions, provided mental health support to 10,000 individuals, delivered 15,000 meals and food hampers, engaged 3,000 youth, and hosted more than 40 cultural events attended by more than 10,000 community members.
The municipality leveraged the Waterloo Region CSWP to implement innovative approaches aimed at closing equity gaps. While it responds to the under-resourcing of marginalized communities, changes go beyond funding alone by addressing systemic barriers. Policies were adjusted to minimize barriers, such as removing minimum or maximum funding requests and charitable status requirements for applicants. Practices prioritized equity-deserving applicants and adopted tools and processes to support participatory decision-making. The model is now being applied in other municipal activities.
Resources flowed in alignment with CSWP areas of focus and prioritized FNIM, ACB, and racialized groups. In 2025, $2.89M was distributed – $1M from the Community Capacity Building Fund and $1.89M from the Upstream Fund. To date, almost $15M has been invested. A Social Return on Investment evaluation demonstrated that of the initial $4.1M, distributed to 41 organizations, a $9.7M impact was created – a 2.4x return on investment.
The model has strengthened relationships and shifted power dynamics. Partnerships across sectors were deepened, with 75 new strategic collaborations and 360 volunteers engaged. Beneficiaries now participate in grantmaking panels alongside funded organizations, ensuring their voices guide decisions. At the same time, municipal stakeholders adopted a new mindset around risk-taking and trust-based funding, challenging prior assumptions about what is possible in municipal grantmaking.
Leadership diversity was central to the initiative’s success. The Community Change Committee included 12 decision-makers from the community with representation from Indigenous communities, urban and rural areas, a range of ages, and varying abilities. This group is made up of new and returning members to balance sustainability with fresh perspectives. The process fosters equitable decision-making and inclusive participation, and redefines approaches to concepts such as “conflict of interest” to rethink colonial constructs.
The Upstream Funding Model has also advanced collaboration across the community. Many organizations moved to partnership and collaboration, supporting community-informed plans and building capacity beyond funding. Over 600 staff and volunteers participated in training that resulted in strengthened skills across the system. Progress is tracked and reported through a range of quantitative and qualitative measures to ensure accountability and sustainability.
Key factors behind this success included collaborating with champions across municipal and community sectors, leveraging existing resources, an openness to trying new approaches, and taking measured risks such as removing funding restrictions and allowing operational expenses.
Lessons learned emphasize the importance of convening the right participants, retaining engagement, sharing power in decision-making, and overcoming colonial assumptions. These insights will continue to guide the growth of the funding model.
Ripple effects of this work are already visible. Funding access for equity-deserving groups has improved, organizational capacity has grown, and trust between municipalities and community organizations has strengthened. Longer-term impacts are anticipated to include self-determined communities, wider adoption of trust-based funding models, and a cultural shift toward participatory decision-making in local governance. Sustaining and scaling this change will require ongoing multi-year funding, leadership development, continued collaboration, and embedding lessons learned into future processes, while tracking outcomes in economic, social, cultural, health, and well-being domains.
