current
Declining Operational Grants
Despite the shift towards community-centricity, there's a concerning decrease in general operating support, multiyear, and capacity-building grants.
Timeframe
near-term
Categories
Detailed Analysis
While the trend towards community-centric philanthropy is positive, the report reveals a concerning counter-trend: a decline in the types of grants that are crucial for nonprofit sustainability. Specifically, "the rate at which foundations give general operating support, multiyear grants, and capacity-building grants has declined steadily since 2015." This raises questions about whether the shift towards community-centricity is truly translating into practices that empower grantees. The decrease in these grant types may hinder the long-term growth and effectiveness of nonprofit organizations, potentially undermining the overall impact of philanthropic efforts.
Context Signals
Increase in foundations adopting principle-based grantmaking practices, which often advocate for unrestricted funding
Growing recognition of the importance of core support for nonprofits
Potential disconnect between stated values of community-centricity and actual grantmaking practices
Edge
Nonprofits may need to diversify their funding sources and explore alternative revenue models.
This trend could lead to increased advocacy efforts by nonprofits and philanthropy infrastructure organizations for more flexible funding.
Foundations may need to re-evaluate their grantmaking practices to ensure alignment with their stated values.
