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How Some Grantmakers Make Life Harder for Nonprofits

Putnam Consulting Group
This article is deemed a must-read by one or more of our expert collaborators.
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Do Grantmakers Make Life Harder For Nonprofits? Giving Compass
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Giving Compass' Take:

• Kris Putnam-Walkerly lists examples of how grantmakers, while well-intentioned, can make the process of applying for grants more difficult for nonprofits.

• What are the ways that funders can create open lines of communication that might make the process easier?

• Read about how to cultivate a smarter vision for grantmaking.


It’s not the philanthropist’s intention to make life harder; it simply happens because no one is paying attention. Here are some of the most common examples:

1. Developing complex grant applications. Yes, philanthropists need some key pieces of information to make wise decisions before giving money away, but there’s a limit to how much an individual can process in any meaningful way. Don’t make extra requests for information that no one will look at, and don’t ask for long narratives that no one will read.

2. Taking forever to approve a grant. Once a grant application is received, philanthropists should understand that time is of the essence, especially if the funds are being requested to address a crisis. If the approval process will take more than a month, communicate with applicants throughout so that those who are declined early can direct their attention elsewhere.

3. Making one-time awards to address long-term problems. Most of today’s social challenges are systemic in nature and will require years of work through multiple avenues. That said, I am continually baffled by the number of funders who will make one grant award, feel good about their generosity and move on. The most effective philanthropy is about long-term partnerships, not one-off pats on the back.

4. Refusing to fund general operating expenses. For nonprofits, however, nothing is as sexy as general operating support. Even the most effective programs can’t operate if the rent isn’t paid, the lights don’t come on and the employees have all been laid off. By removing a basic worry, it allowed its nonprofit partners to focus more of their attention and energy on the initiative’s work.

Read the full article about how grantmakers make it harder for nonprofits by Kris Putnam-Walkerly at Putnam Consulting Group. 

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Since you are interested in Impact Philanthropy, have you read these selections from Giving Compass related to impact giving and Impact Philanthropy?

  • This article is deemed a must-read by one or more of our expert collaborators.
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    A Look at Higher Education Philanthropy

    Giving Compass' Take: • Bruce DeBoskey highlights a Malcolm Gladwell talk in which Gladwell says philanthropic dollars are "going to the wrong places for the wrong reasons" in higher education. • What does your higher education giving strategy look like? Can you redirect your funds to better serve those in need of support in higher education?  • Read more about why higher ed needs to be less elitist in order to survive. Most people agree that higher education philanthropy is worthy of support. In 2016, nearly half of all donations from the largest 50 donors in the United States went to colleges and universities. That same year, U.S. colleges and universities accepted $41 billion in contributions. In early 2015, higher education endowments totaled more than $535 billion, with the top 120 schools holding 75 percent of that sum. Some schools — including Harvard, Stanford, Yale, University of Texas and Princeton — have endowments of more than $20 billion apiece. This is larger than the gross domestic products of many countries. Last year, Malcolm Gladwell (author of best sellers such as "Tipping Point," "Blink" and "Outliers") spoke about educational philanthropy in a controversial podcast called “My Little Hundred Million.” In this 40-minute discussion, Gladwell describes the impact of the donation of $100 million by industrialist Hank Rowan to Glassboro State College in New Jersey for an engineering department and building. At the time, Glassboro was nearly bankrupt. In 1992, this donation gained attention as the largest-ever single gift to a public college or university. Since then, more than 175 gifts of $100 million or more have been given to higher education institutions — mostly to schools with high name recognition and big endowments. Read the full article about higher education philanthropy by Bruce DeBoskey at Wealth Management.


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