Abstract
New research from the Foundation Source shows that private, non‐operating foundations have shifted their grantmaking strategies due to the COVID‐19 pandemic.
New research from the Foundation Source shows that private, non‐operating foundations have shifted their grantmaking strategies due to the COVID‐19 pandemic.
In its new report, 2020: The Year That Changed Everything—How Private Foundations Are Meeting this Moment, the Foundation Source compares the grantmaking behavior of over 100 of its foundation clients in the second quarter of 2020 to that of 2019. The data show a substantial uptick in giving in 2020 and significant changes in how foundations are giving.
For example:
39% of respondents have shifted their foundation's mission since the start of 2020. They did so primarily due to COVID‐19 and the increased need of nonprofit organizations, the report said.
42% have increased the dollar amount of their grantmaking since the start of 2020, and the same percentage expect to do so in the remainder of the year. In addition to COVID‐19 and the increased need of nonprofits, respondents cited social injustice concerns as factors in their decision.
Although making grants to publicly supported charities will always be the cornerstone of foundation giving, some respondents employed, for the first time, other philanthropic capabilities. For instance, 15% granted directly to individuals (versus to nonprofits); 11% awarded scholarships; and 11% engaged in direct charitable activities without the aid of a nonprofit.
Although 86% said they will continue to solely grant to nonprofits for the remainder of 2020, 14% plan to give in other ways.
For more information, the report can be accessed in full at https://bit.ly/3d3PYc8.