FPLG COVID-19 RESPONSE
FOUNDATIONS GRANTS
FOUNDATION GRANTS
[UPDATE: November 16, 2020]
Since the beginning of the pandemic, there have been important moves by some of the nation’s foundations to adapt and respond to the enormous needs of their grantees.
A mid-July survey by the Council of Foundations indicates that “…the majority of foundations have yet to take significant steps to share power.” Although about 60% of respondents “had increased or were planning to increase their 2020 grantmaking beyond previously budgeted levels,…” many of them “indicated that they were hesitant to give more now as it might affect their ability to support their mission in the future….”
Other surveys suggest more progress is being made. The jury is still out (while data is collected) about how much these grantmakers have embraced change or are willing to do it for the foreseeable future – or permanently.
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[UPDATE: May 26, 2020]
Now, over two months into the COVID-19 pandemic crisis, many foundations appear to be stepping up to the plate to increase their grant-making and to relax reporting and compliance rules.
This temporary change may herald a more permanent reevaluation of foundation grant practices to reflect a movement that was beginning to gain steam pre-pandemic: that is, “participatory grantmaking.”
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[April 3, 2020]
For some time, certain philanthropy thought leaders have advocated for significant changes in how the nation’s foundations structure and operate their grant programs.
As the enormity of the pandemic calamity about to sweep our nation became evident, a coalition of major foundations emerged ready to, at least temporarily, ease up grant restrictions and procedures. So far, over 500 foundations have signed a pledge to “stop conducting business as usual with their grantees.”
Among the most significant of the eight promises is “eliminating restrictions on current grants, including turning project-based grants to unrestricted support, accelerating payment schedules, and not holding grantees liable for missed deadlines or canceled events.
This is welcome news for current recipients but also may be a harbinger of future – more permanent – changes to a “trust-based philanthropy.
… [T]he study looked at changes in practice in the areas of resources, priorities, and internal operations and found that the majority of foundations have yet to take significant steps to share power.
— Council of Foundations (9/21/20)
There is no question that grants management is undergoing a rapid and profound transformation, with widespread efforts to adapt quickly and effectively; and a commitment to leading organizational efforts to shift practices to be more responsive and flexible.
— Elly Davis (8/20/20)
…[F]or many nonprofits, the increase in flexibility has been both real and highly valuable. A key challenge going forward is to make sure that these new, more flexible philanthropic practices become embedded in the field, meaning that if times remain rough, foundation support will continue to be there—even if the stock market falters. .
— Carrie Collins-Fadell (6/20/20)
The public-health and economic crises posed by the coronavirus present grant makers with an urgent opportunity to loosen and eliminate restrictions on current grants — to help grantees who are serving communities on the front lines of this pandemic. And while flexible funding is coming into view as an effective tool during a time of emergency, committing to it now can help build powerful trust between foundations and grantees for the long term.
— Kathy Reich, Ford Foundation (4/30/20)
In times of crisis, trust and collaboration are essential. We urge the philanthropic community to consider how a trust-based approach can be a particularly effective way to support nonprofit partners in concrete, meaningful ways.
— Shaadi Salehy, Trust-Based Philanthropy Project (3/17/20)
REFERENCES & RESOURCES
- 2020: A Moment of Transformation for Philanthropy? (November 12, 2020) Naomi Orensten, Center for Effective Philanthropy Blog
- Private foundations plan to increase grantmaking (September 30, 2020) Susan Friedlander Calzone, Philanthropy News Digest
- 2020: The Year That Changed Everything: How Private Foundations are Meeting This Moment (September 21, 2020) Foundation Source
- Shifting practices, sharing power? How U.S. philanthropy is responding to the 2020 crises (September 21, 2020) Council of Foundations
- Transforming the “How” of Grantmaking in a Time of Crisis (August 20, 2020) Elly Davis, Glasspockets Blog
- There Is No Better Time Than Now for Philanthropy to Spend Itself Out of Existence (July 28, 2020) Ellen Friedman, et al., The Chronicle of Philanthropy
- Rockefeller doubles commitment to COVID-19 relief (July 17, 2020) Rajiv Shah, Philanthropy News Digest
- Study: US Community Foundations Have Mobilized More Than $1 Billion to Help Nonprofits Address COVID-19 (July 9, 2020) Community Foundations Public Awareness Initiative
- Rockefeller Brothers Fund Launches Program on Racial Justice, Boosts Grants by $48 Million (June 29, 2020) Alex Daniels, The Chronicle of Philanthropy
- Funder Support During the COVID-19 Pandemic (June 2020) Center for Effective Philanthropy
- The Ford Foundation and the Fierce Urgency of Now (June 16, 2020) Marc Gunther, medium.com
- Don’t Look behind that Curtain: Bond Financing and Philanthropy (June 15, 2020) Steve Dubb, The Nonprofit Quarterly
- Large US Foundations Sell Bonds to Increase Grantmaking by $1.7 Billion Now (June 11, 2020) Ruth McCambridge, The Nonprofit Quarterly
- Leading Foundations Pledge to Give More, Hoping to Upend Philanthropy (June 10, 2020) James B. Stewart and Nicholas Kulish, The New York Times
- Nonprofits That Rely on Foundation Grants Fare Better Than Others Amid Pandemic (June 8, 2020) Dan Parks, The Chronicle of Philanthropy
- Ask an Expert: Grant Seeking in the Pandemic (May 28, 2020) Eden Stiffman, The Chronicle of Philanthropy
- Wealthy Donors to Congress: Make Us Give More to Charity (May 13, 2020) Alex Daniels, The Chronicle of Philanthropy
- The pro-grantee revolution: day two (May 12, 2020) Matthew Gerken, The Chronicle of Philanthropy
- Small Foundations Shifting Funding Due To COVID (May 11, 2020) The Nonprofit Times
- 3 Guiding Principles for Grant Makers Seeking a Covid-19 Playbook (May 8, 2020) Caryl M. Stern, The Chronicle of Philanthropy
- Half of Small Grant Makers Are Giving More (May 7, 2020) Alex Daniels, The Chronicle of Philanthropy
- Giving Cash to the Neediest Becomes Newly Popular with Wealthy Donors and Foundations (April 23, 2020 ) Alex Daniels, The Chronicle of Philanthropy
- Essential Questions for Foundation Boards in a Time of Crisis (April 21, 2020) Anne Wallestad, BoardSource Blog
- Foundations, knock it off with the philanthropic Sophie’s Choices and increase your payout (April 19, 2020) Vu Le, Nonprofit AF Blog
- Why Grantmakers Need to Break Their Restriction Habit—Permanently (April 17, 2020) Claire Knowlton, The Nonprofit Quarterly
- Wallace Global Fund Pledges to Spend 20 Percent of Assets in 2020 (April 15, 2020) Candid, Philanthropy News Digest
- Fulfilling Philanthropy’s COVID-19 Pledge: Listening in a Time of Crisis (April 9, 2020) Valerie Threlfall, Melinda Tuan & Fay Twersky, Center for Effective Philanthropy
- Another Foundation Doubles its Grants Budget, Another Call for Philanthropy to Step Up (April 2, 2020) Ruth McCambridge, The Nonprofit Quarterly
- Some Good News: Funders are Stepping Up (March 26, 2020) Linda J. Rosenthal, J.D., FPLG Blog
- What Nonprofits Need and How Foundations Should Respond (March 24, 2020) Ben Gose, The Chronicle of Philanthropy
- Philanthropy’s “Call to Action” (March 24, 2020) William A. Schambra, The Giving Review
- A ‘New New Normal’ for Foundation Giving: 3 Acts That Will Make a Difference (March 20, 2020) Antony Bugg-Levine, Nonprofit Finance Fund
- Top Foundations Unite to Give Charities More Freedom Over Grants (March 19, 2020) Alex Daniels, The Chronicle of Philanthropy
- Now Is the Time for Philanthropy to Give More, Not Less (March 19, 2020) Aaron Dorfman, NCRP, and Ellen Dorsey, Wallace Global Fund
- A Call to Action: Philanthropy’s Commitment During COVID-19 (March 2020) Council on Foundations
- Philanthropy Has a Duty to Respond Quickly to the COVID-19 Outbreak. Here’s How We Can Do It (March 18, 2020) Lori Bezahler, Inside Philanthropy
- Philanthropy Needs To Trust Nonprofits Now More Than Ever (March 17, 2020) Shaadi Salehi, Trust-Based Philanthropy Project
- Funders Must Step Up – Right Now! (March 16, 2020) Linda J. Rosenthal, J.D., FPLG Blog
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