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This report explores the state of evidence in participatory grantmaking (PGM). It investigates the benefits and challenges of PGM and provides recommendations for the sector on advancing practice and understanding in this emerging area.The report's objectives are (1) to synthesise evidence on whether PGM achieves its intended outcomes and to explore its benefits and challenges compared with traditional grantmaking, and (2) to make recommendations to build the evidence base to better answer these questions.It aims to shed light on whether and how PGM works, with a view to advancing sector practice and highlighting areas for further research. It is grounded in a review of literature and uses case studies to illustrate key insights with a particular, in-depth focus on the Peer-to-Peer Program funded in Australia by the Paul Ramsay Foundation.