Most nonprofits have seen foundation grants increase or stay level amid pandemic: survey

Nonprofits of all types have been hit hard by the COVID-19 pandemic – but different revenue streams have proven more helpful than others, the Chronicle of Philanthropy reports. 

Nearly one-third of nonprofit leaders who rely on grants from foundations have actually seen their funding increase as a result of the health crisis, and close to 40% reported no changes in their level of foundation funding, according to a new survey from the Center for Effective Philanthropy. Nonprofits that rely on earned revenue such as ticket sales have fared the worst. 

Respondents noted that some grantmakers they work with have adopted more flexible practices, such as shifting grant goals and extending deadlines for completing work. But most largely eschewed automatically renewing grants or increasing the size of existing grants.

Philanthropic institutions have been increasingly committing to more open grantmaking approaches because of financial crises brought on by the pandemic. More than 760 foundations have signed on to a pledge to loosen restrictions on grants and contribute to emergency response funds, which may be credited with infusing additional emergency cash into nonprofits in need. Whether that funding will continue in the long run is unclear given the precarious nature of the pandemic. The Center for Effective Philanthropy recommends that funders communicate honestly about what will happen to future support.