Foundations Address The Impact Of The Economic Crisis
The grant-making decisions and likely economic impacts of more than 1,000 of the largest U.S. foundations are explored in this analysis from the Foundation Center. Overall, nearly two-thirds (63%) of foundations expect to reduce the number and/or size of grants they award in 2009.
- 37% of foundations expect to reduce the amount of capital support provided in 2009.
- Non-profits with existing foundation relationships are already receiving smaller awards and rejection notices.
- 63% of foundations expect to reduce the number and/or size of grants awarded in 2009. 44% also anticipate reducing the number of multi-year grants.
- Foundations giving $10 million+ were less likely to anticipate reducing the size of grants (38%) and multi-year grants (39%).
- 80% of foundations expect to maintain the current number of program areas, while 3% expect to increase the number of areas supported. An additional 6% believe they will maintain or increase targeted geographic areas.
- 14% of respondents say they are currently undertaking special initiatives in response to the economic crisis.
- 35% of community foundations say they are launching special initiatives to help their communities deal with the economic crisis. Other sources of support for economic-crisis related funds include discretionary funds (29%) and new gifts from donors (23%).
- In response to the economic crisis, 54% of foundations say they will likely engage in a broader range of non-grantmaking activities and 36% will initiate more collaborative projects.
- The most frequently cited factors influencing 2009 budget decisions include board and leadership decisions (88%), foundation strategic priorities (80%), and existing grant obligations (52%).