Grantmaking organizations in the United States play an increasingly important role in philanthropic giving toward international development issues. Champions of strategic philanthropy have encouraged grantmakers to set clear goals, use evidence‐based strategies, and monitor programs. This exploratory study delves into grantmaking in one of the largest emerging economies; India. Although India is a major recipient of private philanthropy, it continues to perform below average on various socio‐economic indicators. The impact of grantmaking has been unclear. We conducted in‐depth interviews with managers and leaders (n = 9) engaged in decision‐making within U.S. based grantmaking organizations, including nonprofit intermediaries and philanthropic foundations. We examine how the concept of strategic philanthropy is operationalized by participant organizations. Although the participants acknowledge the importance of starting out with a well‐defined strategy, they also face several challenges. We identify some of these challenges, outline how they are being addressed, and discuss implications.