Since its inception, the Foundation has been an innovator and pioneer of "participatory development methodologies" in Africa - the use of tools and techniques that strengthen local capacity and foster ownership of development and empowerment. All ADF-funded projects are "made in Africa" - proposed, designed and implemented by the beneficiaries themselves, with any needed technical assistance and training provided entirely by local experts. ADF's small grants are awarded directly to grassroots African groups and entrepreneurs. ADF's unique participatory approach builds local capacity and promotes self-help and self-reliance by unleashing entrepreneurial spirit and mobilizing community resources.

The Foundation's approach has been shown to enhance the impact and sustainability of investments. ADF pursues a bottom-up approach to stimulate broad-based, sustainable economic growth and to strengthen basic democratic values and institutions. The Foundation does not work through government agencies or international organizations; instead, ADF works directly at the "grassroots"- interacting with and supporting community associations, cooperatives, micro-entrepreneurs and small enterprises, and other types of social or economic interest groups. There is no "trickle down"; because of its community-based approach to development, ADF assistance directly affects people's lives.

ADF's philosophy and operations are in sharp contrast to virtually all other bilateral and multilateral donor agencies. While others in the development community wrestle with how to promote meaningful participation and ownership, ADF has been effectively doing it for 20 years in all of its programs.