How a Pandemic helped Grow Trust
A New Report from the Center for Effective Philanthropy is showing that Covid-19 helped grow the Trust-Based Philanthropy Model, but more work still needs to be done.
The COVID-19 pandemic, which began in early 2020, sparked a flurry of responses from the philanthropic sector as it grappled with the urgent needs of communities and organizations. Many funders pledged to adopt emergency funding, ease reporting burdens, and increase general operating support. The Center for Effective Philanthropy (CEP) has closely examined these developments, assessing whether funders have followed through on their commitments and the extent to which these changes have been sustained. This response analyzes the key findings from the CEP's report "Before and After 2020: How the COVID-19 Pandemic Changed Nonprofit Experiences with Funders," contextualizing the results and addressing the complexities inherent in the world of philanthropy. You can read the report here.
The Positive Shifts
CEP's series of reports indicate that philanthropic practices indeed evolved in response to the pandemic. In early 2023, CEP surveyed 500 nonprofit leaders, revealing that a majority reported increased trust from funders and tangible changes in their practices. These changes included streamlined application processes, reduced restrictions, and receipt of multi-year funding. The report also highlighted the positive shift in the time spent by nonprofit organizations on proposal processes, reporting, and evaluation. This reduction in administrative burdens was crucial, allowing nonprofits to focus more on their mission-driven work and less on bureaucratic processes.
Furthermore, the increase in the proportion of grantees receiving unrestricted general operating support is an encouraging development. The rise from 23% to 30% suggests that funders are recognizing the importance of providing flexible funding that empowers organizations to allocate resources according to their needs. This change demonstrates a step in the right direction toward more effective and efficient support for nonprofit operations.
Challenges and Nuances
While the CEP's report paints an overall positive picture, it's important to interpret the findings with a nuanced perspective. The slow pace of change within the philanthropic sector is acknowledged. Calls for reducing administrative burdens and increasing general operating support might sound straightforward, but translating these ideals into actionable practices is complex. The report's findings reflect incremental progress, which can be seen as both a positive step forward and a reminder of the inherent caution and institutional inertia within the sector.
The Reality of General Operating Support
The increase in the proportion of grantees receiving general operating support is noteworthy, but the fact that it only rose from 23% to 30% suggests that there is still significant room for improvement. The desire for a higher percentage is valid, as it would empower nonprofits to make strategic decisions that align with their missions. However, the complexities of power dynamics within funding organizations cannot be ignored. Allocating more general operating support might be met with resistance from staff and board members concerned about maintaining influence over resource allocation.
Evolution Over Time
An interesting aspect of the report is the distinction between funders' responses based on the number of Grantee Perception Reports (GPRs) conducted. The finding that significantly increased their provision of general operating support indicates that meaningful change often requires time. This aligns with the broader reality of implementing transformative shifts within established institutions. The incremental nature of this change does not necessarily indicate a lack of commitment, but rather highlights the complex challenges in altering long-standing practices.
Sustainability of Changes
The report indicates that 90% of foundations intended to sustain at least some of the changes made to simplify reporting and evaluation processes. This commitment is crucial for maintaining the positive momentum generated during the pandemic. The pandemic offered a unique opportunity to reassess and streamline processes, and the sustainability of these changes could lead to a more efficient and effective philanthropic landscape.
Equity Considerations
Efforts to make application processes more efficient are not just about convenience; they hold significant equity implications. Simplified application procedures can level the playing field for under-resourced organizations that lack the capacity to navigate complex application requirements. This equity-focused aspect of change should remain a priority for funders, ensuring that access to resources is not disproportionately limited to well-established organizations.
The CEP's report sheds light on the evolving nature of philanthropy's response to the pandemic. While the findings indicate positive shifts in practices such as streamlined applications, reduced administrative burdens, and increased general operating support, the intricacies and challenges of instituting these changes are not to be overlooked. The cautious and incremental nature of change within the sector reflects the broader reality of navigating complex organizational structures and power dynamics. The report's insights should encourage both funders and nonprofit leaders to continue advocating for more effective and equitable practices. Sustaining the positive changes initiated during the pandemic can lead to a "new normal" that strikes a balance between the aspirations of nonprofit leaders and the operational realities of philanthropic organizations.
The Weekly Notebook
A few notes and ideas of things I am seeing and hearing on the nonprofit world.
Our Other Publication is Growing!
I recently started a new substack that is focusing on my work here in my hometown of Troy, Ohio and it is growing like the grass in yard after the much needed rain this week! The Civic Capacity substack has been stewarding the positive energy that came from a close Mayoral election into productive conversations about our community. Even if you aren’t from the Troy community, I do believe you will find some interesting ideas and concepts about local government and I would love for you to be a part of the conversation we are having over there!
Please check it out and let me know what you think! You can find it here:
Now Hiring!
I have a nonprofit in Sidney, Ohio that has reached out to me looking for a new Executive Director. I can tell you that this a very strong organization that needs leadership that has strong entrepreneurial and staff management skills. If you have any interest, please drop me a line at pinnaclestrategiesltd@gmail.com and let’s talk!
The Air Force Marathon at Wright-Patterson Air Force Base near Dayton, Ohio is also looking for a non-profit professional. Learn more here: https://www.usajobs.gov/job/732561200
If you or your nonprofit would like to advertise a job opening here, please shoot me an email at pinnaclestrategiesltd@gmail.com
How Can We Work Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
Ready to Learn Something New?
One of the prettiest cities in the Midwest is Indianapolis and travelling there can open a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
Online Learning Options from Texas A&M Announced
If travelling for professional development isn’t in the cards (or the budget), the Center for Nonprofits at Texas A&M University has some great offerings! I recently enrolled in one of their certificate programs and really enjoyed the online format and the online discussions that were developed. It was time and money well spent and I would highly recommend this program, especially for early or mid-career professionals. The next session begins in early February and you can learn more here!
Other Ways to Connect
Our coaching practice has openings and it has been a blast working with nonprofit leaders all across the country! If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have, please reach out to me at pinnaclestrategiesltd@gmail.com.
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