(1) JUST OUT from @CEPData: the third report in our trilogy documenting our findings from phase one of our study on how foundations are responding to the crises of 2020.
(2) My colleagues @naomiorensten and Dr. Ellie Buteau and the research team at @CEPData write that "Most foundations have changed their practices to be more flexible and
responsive. They are loosening grant restrictions, providing more unrestricted funding ...
(3) and reducing what they ask of grantees. Many plan to continue these practices in the future, though to a lesser degree than during their pandemic response." There is a lot to applaud here but also reason for concern that the changes will be fleeting.
(4) Also, particularly disappointing to me is this: while general support has been more frequently provided, single-year grants remain a too-frequent default and there's not much reason to be optimistic about change there.
(5) "Even as funders are making many changes in response to the pandemic, including grant types—namely, providing more unrestricted funding—they are not making much change to duration of unrestricted grants."
(6) Another crucial finding, which builds on data shared in the second report (released last week), racial diversity of boards is correlated with different (and better IMHO) practices:
(7) "Foundations with more racially diverse boards were slightly more likely to offer flexibility to more of their grantees. They were more likely to take the following actions with more grantees than foundations with
less racially diverse boards:
(8) Proactively converting restricted funding to unrestricted funding; Accelerating payment schedules; Reducing or simplifying reporting requirements; Postponing reporting requirements; Postponing in-person/virtual site visits."
(9) Quoting from Ellie and Naomi's conclusion now: "The data we recently gathered from surveys and
interviews and shared throughout this three-part
series suggest that foundations—institutions
often perceived as notoriously process-heavy
and resistant to change—are making ...
(10) significant changes in response to these crises. By loosening grant restrictions, reducing what they ask of
grantees, and providing more unrestricted support, they are demonstrating greater flexibility and responsiveness to nonprofits and those they
seek to support. ...
(11) They are more focused on the importance of building strong, trusting funder–grantee relationships, and they are more attentive to the funder–grantee power differential.
(12) And some hope these crises spur more transformative
change in how funders approach their work—that this moment will be more than, as one leader put
it, 'tinkering on the edges.' Yet, despite greater focus on building trust ...
(14) most foundations continue to provide very little
multiyear GOS, the grants that nonprofit leaders see as most helpful. Even as most foundations have become more flexible and responsive in their grantmaking practices in the wake of the crises of 2020 ...
(15) our findings suggest that most do not plan to implement these practices to the same degree in the future as they are now." Many questions raised by these findings, incl how to capitalize on this moment to encourage funders to make permanent some of the positive changes ...
(16) ... and how to encourage funders to go further than they yet have. I look forward to discussing this all on a webinar in January. Read the report here: http://cep.org/wp-content/uploads/2020/12/CEP_Foundations-Respond-to-Crisis_Toward-Greater-Flexibility-and-Responsiveness_2020-1.pdf
(18) Big thanks to the @FordFoundation for supporting Phase One of this research and to all the funders chipping in for Phase Two, next year. Thanks especially to @chriscardona, @hpennington_, @darrenwalker, @kdreich, @BessRothenberg and all the other Ford colleagues ...
(19) ... for their support and guidance -- though @CEPData is solely responsible for the analysis and reports so blame us for what you don't like.
(21) @hannahqmartin, Satia Marotta, @KateGehling, and Katarina Malmgren. I am lucky to work with such smart colleagues and they have sprinted to get this data analyzed and out before year-end.
You can follow @philxbuchanan.
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