A knowledge gap exists between nonprofits and the foundations which support them, according to a survey released Monday by the
Center for Effective Philanthropy. The report found that 52 percent of nonprofit leaders believe foundations are unaware of the challenges they face.
Less than one-third of nonprofit leaders think foundations take advantage of their myriad of resources to help them address those challenges.
About 36 percent say foundations share their knowledge about what other organizations do to address similar challenges.
“Given the hesitance nonprofits may have about openly sharing their challenges with their funders, we hope this report helps set the stage for foundations to do more to strengthen those they fund. After all, foundations depend on their grantees to help them achieve their goals,” said CEP President Phil Buchanan in a
press release.Nonprofits say three key areas need support: Meeting demand for programs and services, using technology to improve effectiveness and developing leadership skills.
“Seventy-three percent of the nonprofit leaders we surveyed said they lack the resources to develop their leadership skills,” said Ellie Buteau, co-author of the report and CEP vice president of research.
“That’s a huge opportunity for any foundation that wants to take the long-term view and fuel leadership development.”
Other findings:
--Nearly all nonprofits say a big challenge is winning and holding onto foundation grants. Leaders ranked this as more difficult than obtaining government grants or individual donors.
--For revenue-producing nonprofits, leaders say they want foundations to help them expand their work to offset the loss in government revenue.
--Nonprofit leaders want foundations to award grants spanning several years to help pay for general operating needs. They say foundations tend to fund new programs, which often require additional costs nonprofits cannot afford.
“Clearly, foundations cannot do everything, and it is likely the case that nonprofits will always be looking for more help from funders than can be provided, given limits on staff time and resources,” the report states.
“But the data also show that nonprofits are not looking for their foundation funders to help them with everything they find challenging. They are looking for more help to deal with some of their most pressing challenges.”
The report conclusion suggests foundation staff ask these questions:
--How confident are you and your colleagues that you understand the challenges grantees are facing? How do you develop that understanding?
--What are staff members doing to build relationships with grantees in which grantees feel they can be open with you about their challenges?
--Have you and your colleagues reflected on the resources, knowledge, or connections that the foundation could be, but isn’t yet, using to help grantees?
“The picture that emerges from this data and our previous research is clear,” said Buchanan.
“Although foundation staff tend to be interested in providing assistance beyond the grant, it can be hard to know exactly how to do so.
"To help your grantee, you need engage in an open conversation that can only be based on a trusted relationship that you’ve built over time.”
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