Donors need to assess impact creation on ground to ensure effective utilization of the funds disbursed.
Grants are non-repayable funds disbursed by donors to an enterprise or nonprofit entity with stringent compliances in place and requirement of a minimum criteria to be met in terms of scale achieved, impact created, or proof of concept.
Since the primary aim of donors is market facilitation by providing funds to scalable and sustainable enterprises, it is imperative for them to make sure that the funds are being used effectively.
The current form of the DREEM tool helps donors in assessing the following –
1. How to disburse and ensure usage of grants more effectively?
2. Does the grant distort the market? Which geographies should the grant be focused on to facilitate market creation?
Donor organizations often need to see impact being created on ground in order to realise their funds being used effectively. The tool uses first-level impact data from enterprises to signify impact creation and hence, depict the effective use of grants.
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