Writing in The Center for Effective Philanthropy (CEP), Hewlett Foundation Effective Philanthropy Group Director Jehan Velji reflects on the urgency of increasing flexible funding for nonprofits during challenging times and how funders can take steps in that direction.
Now, as nonprofits across the country brace for increased needs in communities, as well as funding cuts that result from federal policy changes, it is once again a chance for funders to choose to structure our funding in ways that nonprofits say work better for them. Above all, that means we should be providing more multiyear, flexible funding.
And we can do it. During the COVID-19 pandemic, we saw funders adjust their practices, providing more flexible funding and also streamlining processes to reduce administrative burden on nonprofits. Philanthropy was responsive and got more flexible so nonprofits had the flexibility they needed to meet the moment.
So, it was disappointing to see that, in the most recent CEP report on Scott’s impact and influence, about half of foundation leaders report that they believe nonprofits are only “somewhat,” “slightly,” or “not at all” able to handle large gifts with no restrictions. This was striking to me, given the three years of evidence in CEP’s study that the majority of nonprofits are handling these gifts effectively.
