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Native Voices Rising is a joint research and re-granting project of Native Americans in Philanthropy and Common Counsel Foundation. This report focuses on the practices and challenges of community organizing and advocacy, focusing on the need for increased investment in and sustained support for American Indian, Alaska Native and Native Hawaiian communities.
A corporate funder asked our corporate funder listserve about how the corporate foundation is funded either through an endowment or through periodic transfers, or though a share of the profits? This document is a compilation of the responses on the listserve.
General Operating Support or General Project Support
Affirmation: Funds with the least restrictions are the most valuable
Nonprofits maintain and strengthen their organizations when their funds are unrestricted. Data shows flexible and reliable funding increases impact when nonprofit leaders have control over how funds flow to meet the needs of their constituents and internal operations, as demonstrated during the pandemic when funders released previously restricted funding. General operating support (GOS) funding signals trust in our partners and can open more honest dialogue about meeting the mutual goals of the funder and nonprofit. Funders who make project or program grants should trust the organization and provide flexible funding within a specific program.
Activities
• Over the short term, funders aim to shift their GOS activity by 30%. (30% more grants shift from program to GOS, or from fully restricted to negotiated GOS.)
• Provide grants as unrestricted organizational general operating support. The long-term ideal is for most, if not all, grants to be 100% GOS, unless a funder is legally precluded from doing otherwise.
• For project/program grants, 100% of the grant awarded is unrestricted (negotiated GOS), applying mission-based and mutually negotiated outcomes.
• Nonprofits articulate their organizational vision, strategies and intended outcomes to funders; funders understand the models of their grantee partners and learn from them how the grantee partner's work will lead to change.
• Trust nonprofit partners to know how to best apply their funding.
• Create a shared understanding of the meaning and importance of full-cost budgeting and real-cost funding.
Short-term Outcomes
• 70% of funders are shifting some of their distribution to making general operating support grants.
• 100% of program/project grants are designated unrestricted.
Long-term Outcomes
• 100% of all grants are made without restrictions, unless limited by covenant or donor wishes in the case of community foundations.
• All nonprofits can clearly articulate their vision, strategies, outcomes, and business models to funders; and funders understand them and trust them to know how best to use their funds.
How to Begin Doing Good Better on Flexibility Learning Opportunities
• Why aren’t some funders planning to award GOS or negotiate GOS?
• Ask funders: If you participated in CNJG’s 2022 funder survey and indicated that you planned to initiate GOS, have you done so? • Why are some grants restricted?
• What would it take for funders to change?
Pre-Work
• Seek and share learning opportunities for funders, prioritizing education of foundation boards, to address the barriers to awarding GOS and understand how restricted funding undermines financial sustainability.
• For funders who already regularly provide GOS funding, educate/advocate for others to do the same.
• Learn how GOS/negotiated GOS strengthens grantee partners and the multiple ways they can use and evaluate GOS. Actively seek insights from nonprofits to reinforce the message about GOS in their funding partnerships.
• As an incremental step for funders that are not receptive to GOS, provide education about negotiated general programming support (flexible funding within a mutually agreed-upon program area, as opposed to organization-wide GOS).
• Share promising practices on evaluation of GOS and negotiated GO
A new nonpartisan resource, Foundation Funding for U.S. Democracy, provides data about foundations and their democracy-related grantmaking in a structured, contextualized, and visual format. Foundation Funding for U.S. Democracy was created through a partnership of eight funders in the field, including the Rita Allen Foundation, and is being developed by the Foundation Center.
The tool allows funders, nonprofits and other interested parties to sift through data on the $1.7 billion (and counting) granted by foundations to strengthen civic engagement in the United States since 2011. For the first time, we have an open tool for visualizing who gave how much to whom for what. While the tool and the data will continue to develop, it already gives a tremendously useful view of opportunities for greater partnerships and knowledge in the field—both for funders and for the organizations, small and large, established and emerging, working to strengthen our democracy. As Kelly Born of the Hewlett Foundation, another of the project partners, writes in a post introducing the tool: “As useful as this data set and visualization will be for foundations already working in the field or new funders considering entering it, the real killer app for this work will be to help grant seekers.”
Funding Indigenous Peoples: Strategies for Support, looks at how funders collaborate with and bring support to indigenous communities around the world. Through examples from a diverse range of foundations, this guide explores how grantmakers work with indigenous peoples, the approaches they take, and the practices they find effective.
This guide was developed in collaboration with International Funders for Indigenous Peoples (IFIP).
After more than 15 years promoting grantmaker practices that support nonprofit results, GEO is convinced that a strong culture inside foundations is critical for effective philanthropy. It’s virtually impossible to operate as an ally and partner to nonprofits if you are working inside a foundation whose values and culture run counter to that spirit.
GEO defines culture as “the collective behaviors and underlying assumptions of an organization.”
GEO is focusing on culture because of what we hear in our conversations with foundation leaders, staff, board members and nonprofits across the country. People at all levels in their organizations regularly tell us how an unproductive culture can get in the way of what their foundations have the capacity and the potential to achieve. They share that successful grantmaking — grantmaking that supports nonprofits to achieve meaningful results — requires more than a great strategy and execution plan; it also requires an intentional focus on culture.
CNJG is pleased to offer this program to family foundation members as part of NCFP's Fundamentals of Family Philanthropy 2024 webinar series, providing guidance on the core tenets of effective family philanthropy.
Discover how family philanthropy can be a powerful catalyst for systems change by forging meaningful partnerships with like-minded organizations, initiatives, and stakeholders, and working together on initiatives such as pooled funds, donor collaboratives, and other strategies. Through expert insights, real-world success stories, and practical advice, we’ll guide you in harnessing the potential of collaboration to tackle complex social challenges.
Cost: This event is free for CNJG Members who are family foundations.
Other types of foundations are ineligible to join this webinar.
This program is a CNJG membership benefit for family foundation members, including staff and trustees, in partnership with the National Center for Family Philanthropy.
While donor collaboration is not a new concept, the new economic reality has more and more families, foundations and companies looking towards collaboration as a tool to increase their impact on the issues they care about. This primer was created to help donors understand and evaluate if some form of collaboration might be right for them.