The Hamburg Institute for Social Research is an operating foundation that primarily funds projects initiated and conducted by its own staff. Funding is not available for projects in areas outside the issues focused on by the Institute; this restriction applies independent of whether such proposals involve research or other academic endeavors, conferences or other events, or cultural activities.

Grants for studies by non-staff scholars are awarded in exceptional cases only. To be considered, project proposals from external applicants must focus on the issues addressed in academic work at the Institute.

Key criteria in judging such applications include the innovative and original nature of the proposed research questions and/or methods; expected sustained contribution to scholarship in the field; commitment to promoting academic cooperation with other scholars that promises to create synergetic effects and, wherever possible, transcends national borders. Applicants who have already secured co-funding from other sources as well as those who initiate cooperation with potential partners, intend to seek third-party funding for further work, or document earnest efforts in any of these respects also heighten prospects for positive review of their proposal. Grants are not awarded to close gaps in operating budgets or to subsidize printing costs.