Fundraising
In search of impact: practices and perceptions in foundations' provision of program and operating grants to nonprofits
How foundations can best support non-profits
Authors:
J. Huang; P. Buchanan; E. Buteau
Publisher:
Center for Effective Philanthropy, Boston, 2006
What influence do philanthropic foundations exert on their grant recipients? This report explores both the attitudes underlying the practices of foundations, and the impact they have on nonprofit organisations receiving funds. It aims to facilitate a balance between foundation objectives and recipient needs.
A survey of foundation CEOs and leaders of nonprofit organisations reveals:
- a preference among recipient organisations for larger and longer term grants
- a need for foundations to consider the impact of grant size and duration on grant recipients, rather than focusing on operating support
- a tension between foundation leaders' belief of what is necessary to demonstrate accountability and impact, and what would generate a positive impact on recipient organisations.
To effectively support nonprofits achieve their goals, this report provides the following recommendations:
- foundations must exemplify the characteristic of their most valued grantees - high-quality interactions, clear communication of goals and strategy, and demonstrated expertise
- it is crucial to understand the conditions under which operating support will make the a positive impact on grantees
- foundations ought to provide more extensive and longer-term grants.
