TRENDS: The Grantmaking Gap

NEWS FROM GRANTMAKERS FOR EFFECTIVE ORGANIZATIONS

Most foundations are not making changes they and their grantees say are essential to supporting nonprofit success, but there is evidence of a gradual shift to more nonprofit friendly grantmaking practices, according to a new survey from Grantmakers for Effective Organizations.

The research, conducted by Harder+Company Community Research, was the second-ever comprehensive survey of the attitudes and practices of all staff ed grantmaking foundations in the United States. It builds on a similar study conducted in 2003 by the Urban Institute in partnership with GEO.

Principle Findings:

There is a pronounced disconnect between the ways in which grantmakers are supporting nonprofits and what nonprofits say could contribute most to their success. Further, many grantmakers have not adopted practices that they themselves see as important for effective grantmaking.

In focus groups through GEO’s Change Agent Project and in surveys conducted by colleague organizations, nonprofit leaders have consistently pointed to two critical areas where changes in grantmaker practice can lead to better support for nonprofits:

1. Improving the type of financial support grantmakers provide, and
2. Building a more productive relationship among grantmakers and grantees. GEO’s survey found that while by and large progress is slow, there is evidence of a growing movement among some foundations to provide better support for nonprofits.