Shared Cause has been working with foundations of all sizes for nearly 30 years.  In these upending times, non-profits are rightly worried about how to move forward with their work and how to support that work.  Will their foundation partners stay the course?  Will they retrench?  Or will they adopt new ways of working that offer promise for the future?

From where we sit, there are things to be hopeful about.  Here are some of the trends we’re seeing.

Trust-based philanthropy

• The current crisis is accelerating a move toward what’s being called “trust-based philanthropy” – in other words, trusting that non-profits know best how to serve their constituencies quickly and efficiently.  More foundations are allowing grantees to turn project-based grants into general operating support. Further, they are waiving deadlines and reporting requirements.  Could this signal a return to more unrestricted grant making?  Also, to be responsive, leading foundations are empowering more staff decision making (versus board approval) to streamline their giving.
  

Cementing collaboration

• Instead of pulling back on grant making, some foundations are committing to increase their giving beyond their mandated level.  This happened during the Great Recession, too.  The last recession also spurred a move toward greater strategic collaboration.  During the heart of that downturn, we helped a consortium of philanthropies and public sector leaders come together to increase investment in the development of stronger systems of educational support for Boston residents.  Similar civic collaborations emerged nationwide.  In communities all around the country these kinds of partnerships are now built into the civic culture.  These efforts are too wired-in to be abandoned.
  

Taking stock

• We’re hearing that staff of large foundations are making decisions on two levels:  What immediate actions can they can take to protect the viability of non-profits whose work aligns with their missions? While still defining strategies that will advance their objectives over the long term. This is a good time for non-profits to influence how foundations will pursue their priorities in post-pandemic times.

• With respect to individual giving, wealthy donors will likely continue to be generous.  During the Great Recession, many institutions conducted historic capital campaigns.  The challenge, though, for smaller non-profits is that so many lack the staff and volunteer capacity to maintain the kinds of relationships that lead to large gifts.  Foundations may want to take this up as a social justice issue.

What’s next

How and when our economy, our schools and our lives get re-started are still giant question marks. One thing is clear, the work of many non-profits will be even more critical on the other side of this crisis.  We see our client partners from the early care and education and youth development sectors, to college attainment and opportunity youth workforce training determined to keep their mission in focus and to be even more prepared to carry out the work.  In this environment, it’s encouraging to see the philanthropic sector adopting practices that put non-profits in the lead.