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A key objective of the Scaling What Works initiative has been to translate insight and learning from grantmaker intermediaries involved with the Social Innovation Fund and share them with the broader philanthropic community. The fifth guide in the Lessons Learned series presents the benefits and challenges of partnerships between local and national funders, and highlights key considerations for both kinds of funders to foster success in their collaboration.
How can funders make grant applications and reporting less burdensome for nonprofit partners? How do we connect with smaller nonprofits working on-the-ground in communities? How can we encourage more unrestricted grants? How should funders compensate nonprofit leaders when asking for their expertise and limited time?
We’ll explore those questions, and more, at the upcoming CNJG 2023 Conference for the Social Sector: Doing Good Better on May 23.
But don’t delay in registering for the event. We’ll be at capacity very soon and will likely need to close registration. CNJG is the network serving you, our members; and our members – you - work toward the shared goals of improved practice and empowering stronger communities. Please register soon.
Getting back to our new team member – I’m pleased to welcome Chanika Svetvilas, CNJG’s new Manager of Programs and Learning. Chanika started with us on April 19. She will coordinate and manage our overall programming, including affinity group meetings, funder briefings, partner programs, skill-building workshops, and signature events. Chanika brings a range of experience in program implementation and planning. You can read her full bio here.
You’ll get the chance to meet Chanika at the Conference on May 23. The entire CNJG team is looking forward to seeing you there.
See you soon,
Theresa Jacks, President and CEO
Council of New Jersey Grantmakers
Multi-year Grants
Affirmation: Multi-year funds provided both reliability and breathing room for nonprofits.
Making fundamental and long-lasting change comes with the promise of reliable investments. Longer grant terms create an environment where collaborative partnerships can flourish, and trust and transparency break down power dynamics. The result is that nonprofits have the “breathing room” and financial stability to focus activities where they are most needed.
Although many funders award grants to the same nonprofits year after year, they often require submission of annual applications that request information they already have and are complex and needlessly lengthy. These processes can heighten mutual distrust. From a practical standpoint, multi-year awards reduce paperwork for both funder and nonprofit and open communication channels promoting shared goals, mutual trust, and increased overall impact.
Activities
• For funders that historically award repeat annual grants to the same nonprofit partners, shift from an annual grant/proposal cycle to a long-term, multi-year commitment with an annual outcomes/progress report in lieu of a full application.
• Tailor grant terms to suit grantee timelines and needs (negotiated outcomes and milestones).
• If data collection is required solely to meet a funder’s compliance requirements, the funder should assume this responsibility or provide sufficient funding and/or capacity for the nonprofit to meet the requirement.
Short-term Outcomes
• The number of funders making multi-year grants increases by 50% over the previous years.
Long-term Outcomes
• More funders convert an annual application process for repeat grantee partners to a multi-year commitment with an annual outcomes report at the most, instead of full proposals each year.
• Funders assume responsibility for data collection or provide sufficient funding and/or capacity for the nonprofit to meet the requirement.
• Grant terms are suited to grantee timelines and needs (negotiated outcomes and milestones).
How to Begin Doing Good Better on Reliability
Learning opportunities
• What barriers keep funders from making long-term commitments to repeat grantee partners? Are any of these barriers legal?
• What are the minimum data requirements for funders to collect from repeat grantee partners?
Pre-Work
• Address the barriers to awarding multi-year grants through tested tools.
• Learn about how multi-year grants strengthen grantee partners and improve philanthropic, nonprofit, and community impact.
• Research mechanisms funders can use to meet legal compliance requirements while gaining trust in their grantee partners.
Grantmaking at the Crossroads is a workbook designed to provide foundations with a new grantmaking methodology that works at the intersection of place, population, and issue. It offers a pathway to greater inclusion of communities that are often excluded or marginalized by foundation funding and enables foundations to maintain their focus and priorities while expanding their reach and effectiveness.
The Grand Rapids Community Foundation and the Kalamazoo Community Foundation volunteered to be laboratories for Grantmaking at the Crossroads and have been critical informants for this workbook. Each of these foundations holds an unwavering commitment to ongoing learning; this publication would not have happened without their support and engagement and the financial support of the Arcus Foundation.
The Ford Institute for Community Building, a program of The Ford Family Foundation, works to help community leaders learn how to implement local solutions based on principles of effective community building. This paper describes the development and work of the The Ford Institute for Community Building.
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
CNJG’s first-ever Policy Agenda that includes our approach to the policy work, and five policy priorities.
The COVID-19 public health and economic crisis has changed our world as we know it. As employers moved to remote work, schools shifted to distance learning, and businesses closed completely, it became clear that the impact on residents, nonprofits, and businesses was far greater than anyone could have ever imagined.
In response to the growing and evolving needs of our region, the Greater Washington Community Foundation established the COVID-19 Emergency Response Fund to raise and rapidly deploy funding to local nonprofits providing food, shelter, educational supports, and other critical services.
From the beginning our goal was clear: to address the immediate needs and reach adversely affected communities, particularly low-income households and communities of color. We know all too well that in a crisis like this, these marginalized communities are hit the hardest, and often take the longest to recover.
In times of crises, The Community Foundation is our region’s philanthropic first responder, bringing together individuals and families, philanthropic peers, corporate partners, and local government advisors to address community issues. Building on our rich history of emergency response work, we grounded our COVID-19 response efforts in a similar coordinated approach.
This report chronicles the steps taken, under immense pressure, to develop a coordinated emergency response effort to support a broad range of needs across the region. Once again this effort has demonstrated that working in partnership and close collaboration with our philanthropic peers and local government advisors is an effective way to manage a response to both urgent and longer-term needs.