Our Members Address the Economy

Examples of Smarter Grantmaking in Challenging Economic Times

Which changes can grantmakers make to improve nonprofit performance?

The economic crisis hasn’t changed the answer to this question; it only has served to heighten the urgency of our response.

Given that our success as grantmakers in inextricably linked to the results that our grantees achieve, we must ask ourselves, “How can we minimize the impact of the economic crisis on the people, causes and organizations we care about?” The good news is that we still have the opportunity to act and help nonprofits survive and thrive. Here are some good examples of GEO members doing just that.

Check out our newest publication, Smarter Grantmaking in Challenging Economic Times, which provides insights for foundation leaders. + more

GEO Resources

Smarter Grantmaking in Challenging Economic Times. In today’s economy, smarter grantmaking is not just nice — it’s a necessity. As grantmakers look ahead to make tough decisions for 2010 and beyond, this publication offers recommendations and examples that we hope provide some useful insights for foundation leaders. + more

Responding to the Economic Crisis: A letter to GEO members. As the economy fumbles, nonprofits find themselves in a precarious situation. GEO's President and CEO, Kathleen Enright urges leaders in philanthropy to hold steady with their support to nonprofits and communities who need it now more than ever. + more

Newest Responses

The Gulf Coast Community Foundation of Venice, FL, has allocated funds to assist local agencies with operating expenses, an area that it has not traditionally funded. + more
The F.B. Heron Foundation has accelerated grant payments to grantees in situations with particular urgency and supported cash flow lending to nonprofits by a local community development bank. In addition, Heron created an “opportunity fund” that can support special grant opportunities that promise to increase scale of grantee outcomes, leverage additional resources, and/or advance public policy. + download PDF
The Dean and Margaret Lesher Foundation made phone calls to its grantees to find out what they needed. Conversations led to the foundation to fund a capital improvement project at a local food bank – solar panels that would save on energy costs – representing a dramatic departure from their typical support of social programs. + download PDF

Check back soon for new responses to the economic crisis.

GEO Member Responses

Holding steady. Grantmakers who are increasing or maintaining their level of support.

Bill & Melinda Gates Foundation is growing its payout in 2009 by about 10 percent. + more
Ford Foundation is increasing its payout rate in 2009 and 2010. + more
Blue Shield of California Foundation recently intensified its focus on strengthening the safety net, to better serve California’s communities in these tough economic times. + more

Engaging stakeholders. Grantmakers who are listening to grantees and responding to their needs.

California Community Foundation surveyed 112 of its grantees to find out what challenges they were facing in the current economy, and, based on their responses, designed and delivered a series of five workshops to help build fundraising capacity and provide access to no-cost or low-cost consulting. + more
Dyson Foundation convened 350 people from 170 nonprofits in the Hudson Valley area for a session, “Managing Nonprofit Organizations in Lean Times.” + more
The Kresge Foundation surveyed grantees to find out the most important actions the foundation could take to support their organizations. + more
Pittsburgh Area Grantmakers — including the Pittsburgh Foundation, United Way of Allegheny County, the Hillman Foundation and others — have pooled funding to establish Neighbor-Aid, an emergency fund for area nonprofit groups seeing a surge in demand. + more

Providing flexible funding. Grantmakers who are providing unrestricted support, access to credit, cash flow loans and other alternative funding sources.

Eugene and Agnes E. Meyer Foundation has seen an increase in applicants to its cash flow loan program. + more
The Marion I. and Henry J. Knott Foundation has similarly seen an increase in requests for cash flow loans among their grantees in the Baltimore area. The foundation has also decided to use discretionary funds on an as-needed emergency basis. + more
Weingart Foundation released regular restrictions on grants, offering one-year general operating support grants of up to $150,000 to nonprofits providing essential human services in Southern California. + more

Doing more with less. Grantmakers who are making low-cost or no-cost changes that will give grantees greater flexibility.

The John S. and James L. Knight Foundation is cutting costs, not grants, due to investment losses. + more

Tell Us Your Story

Send us your story + e-mail

Are you a grantmaker who is responding to the economic crisis? We want to hear from you. What are you doing to weather the economy? How are you addressing the growing needs of the communities you serve? How have you worked with grantees to find solutions? We are specifically looking for examples of:

Grantmakers who are increasing or maintaining their level of support;
Grantmakers who are listening to grantees and responding to their needs;
Grantmakers who are providing unrestricted support, access to credit, cash flow loans and other alternative funding; and
Grantmakers who are making low-cost or no-cost changes that will give grantees greater flexibility.

Write to us and please include: a one-sentence headline plus details about your story, your organization’s name and your contact information, and a link or resource we can post (such as a press release, report or letter from your president). Please note: We will give priority to GEO members in publishing responses.

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