Grant-making Foundations Research Articles

Feminism, Foundations, and Social Change: Understanding Women’s Philanthropic Nonprofits

It is crucial to understand the role of feminism in addressing social issues, particularly with the prevalence of feminist causes today. This necessitates examining feminist organizations within public administration that strive toward equity, and gender and social equality. It is also crucial to understand those institutions that have influence and resources to invest in social change. The intersection of these topics is found in women’s grantmaking foundations and funds (WFFs). This research explores how these organizations are 21st-century feminist organizations, the type of feminism they embody, and their role in—and contribution to—social change. Feminist organizations aim to advance gender, social equality, and equity despite being overlooked in public administration, philanthropy, and nonprofit literature. This research utilizes an exploratory and descriptive design to shed light on the current state of feminist organizations and foundations in public administration, filling critical knowledge gaps.

Study shows few grantmakers funding endowments, despite their advantages

New research shows that fewer than a third of grantmaking foundations fund nonprofit endowments, despite the fact that endowments can be a “powerful grantmaking tool that not only can address longstanding racial inequities but also represents a direct transfer of power,” according to the Bridgespan Group and the Center for Effective Philanthropy.

Foundations mostly staying the course in response in light of affirmative action rulings

New research from the Center for Effective Philanthropy concludes that U.S. grantmaking foundations are largely holding steady in their support for racial equity initiatives despite a pair of rulings from the Supreme Court that overturned affirmative action policies in higher education.

Responding to Public Demand Together: Practices of Grantmaking Foundations’ Participation in Implementing the Universities’ Third Mission

More and more universities today are recognizing that the third mission is part and parcel of higher education. Universities are striving to engage with society, by partnering with businesses, government institutions, local communities, and other stakeholders. With the support of grantmaking foundations, universities get the opportunity to implement their ideas and projects, thus driving progress and building their reputation as socially responsible institutions. In this article, we expound on how philanthropic organizations take part in formulating and implementing the universities' third mission, drawing on the example of the Vladimir Potanin Foundation — one of the pioneering charity foundations in Russia supporting and developing higher education.

How transparent are charitable foundations? A large-scale comparison of transparency levels in grant-making trusts and foundations in England and Wales

Debate on the role of charitable grant-making foundations often references concerns about their lack of transparency. There has, however, been limited empirical investigation of foundation transparency levels. In this study, we report the largest-ever investigation of transparency among grant-making foundations in England and Wales. Based on a novel dataset, which captures the level of grant-specific data published by more than 2,200 foundations over five years from 2014 to 2018 (inclusive), we find that: (a) overall, these foundations are transparent in their disclosure of grant-specific data; (b) the results also paint a picture of stability – of those foundations with published trustees’ annual reports and accounts in all five years of this study, 78 per cent had the same disclosure practice throughout; and (c) a specific regulatory change mandating grant-specific disclosure has not substantially increased levels of disclosure. This study therefore provides detailed evidence that contributes to and expands the conversation on English and Welsh foundation transparency.

Research shows global challenges impacting funder timeframes and spend‐downs

A new report from Rockefeller Philanthropy Advisors (RPA) shows that the various challenges of 2020 and 2021 has spurred many grantmaking foundations to accelerate their spending and/or consider revising their philanthropic timelines.

Answering the Call (for Proposals): Moving Toward Justice in Postsecondary Philanthropy

In Short As postsecondary grantmaking foundations make sense of recent sociopolitical crises, including inequities exacerbated by the COVID-19 pandemic; attention to the Movement for Black Lives following the summer 2020 uprisings; and more openly racialized politics, they have been catalyzed to reconsider their racial equity commitments. Grantmakers are expanding beyond their historically white-dominated networks for knowledge and expertise on where to channel their influence toward transforming postsecondary education. These grantmakers are also reflecting on avenues to shift their grant dollars to funnel more funds to BIPOC-led and community-embedded recipient organizations. Without internal and external accountability to harness lessons of the last 2 years, grantmakers (and their grantees) risk returning to status quo practices that effectively entrench racialized hierarchies.

Beyond the money: grantors supporting their grantees

This study analyses the relationship between grant-making foundations (grantors) and operative nonprofit organizations (grantees) to determine whether a positive association exists between foundations’ intervention beyond the money and grantees’ organizational capacity development. Data are collected using a survey of grantees who received funding from a Foundation of Banking Origin (FOB) in the context of Italy. The analyses portray three capacity-building factors that FOBs can deploy in addition to the financial grant, namely, operative support, goal alignment, and performance oversight. The results endorse our hypotheses that both the amount of operative support provided by the foundation and the higher perception of goal congruence between grantor and grantees are positively correlated with the organizational capacity of the grantee. Our results also suggest that the benefits of increased oversight prevail over the drawbacks.

Recollections of How the Child Marriage Field Has Evolved

Recollections of How the Child Marriage Field Has Evolved

Joint Research and Collaboration between Grant-making Foundation, Nonprofit Umbrella Organization, and Researcher: Case Study from Fukutake Education and Culture Foundation’s Questionnaire Survey

Joint Research and Collaboration between Grant-making Foundation, Nonprofit Umbrella Organization, and Researcher: Case Study from Fukutake Education and Culture Foundation’s Questionnaire Survey

Survival or Crisis? Funding Distribution from Grant-Making Foundations to Grassroots Social Organizations in China

The 2008 Wenchuan earthquake increased the need for disaster relief and reconstruction projects in China. This disaster created an upsurge of Chinese grant-making foundations, which then increased funding expectations. Many grassroots social organizations (SOs) in China believed that going forward, this level of funding would continue. However, the majority of grassroots SOs in China are currently facing an existential crisis. Their survival is being threatened by a shortage of funding from both local and foreign grant-making foundations. This research uses an empirical analysis of grant-making foundations and in-depth interviews, as well as observational evidence accumulated over a 10-year period, to explore the distribution of funding from foundations to grassroots SOs in China. The findings show that there are a limited number of Chinese grant-making foundations and that the foundations that exist do not include grassroots SOs in their funding scheme.

Examining the COVID-19 Response of Canadian Grantmaking Foundations: Possibilities, Tensions, and Long-Term Implications

This article explores how Canadian philanthropic foundations with social justice mandates responded to the social and economic impacts of the COVID-19 pandemic by loosening restrictions for grantees; collaborating on new initiatives; elevating grassroots knowledge; and balancing short- and long-term priorities. This response, however, revealed a series of tensions in the dominant pre-COVID-19 philanthropic model—specifically, as a mechanism to address the social, econ- omic, and ecological crises that predate COVID-19. The early pandemic response of grantmaking foundations can there- fore serve as a model for what a more democratic, agile, collaborative, and justice-oriented philanthropic sector can look like. RÉSUMÉ Cet article examine la réponse de fondations philanthropiques canadiennes aux enjeux de justice sociale pendant la pandémie de COVID-19. Elles l’ont fait en assouplissant les exigences exigées aux donataires; en collaborant autour de nouvelles initiatives; en priorisant l’expertise des communautés; et en équilibrant les priorités à long et à court terme. Cette réponse révèle les tensions inhérentes au modèle classique de l’action philanthropique, particulièrement dans les façons de répondre aux crises sociales, économiques et écologiques. La réponse actuelle fournit des bases solides pour repenser le modèle d’action du secteur philanthropique subventionnaire afin qu’il soit plus démocratique, plus collaboratif et plus axé sur la justice.

Governance Mechanisms Fostering a Legitimate Representation in Nonprofit Organizations

ABSTRACT A sound governance fosters the capacity of a nonprofit to meet the needs of the community by allowing local stakeholders to be represented on boards and to participate in decision-making through different mechanisms. This study explores the possible combinations of these mechanisms that lead to a high capability of acting for the community (substantive representation). To achieve this aim, a fuzzy set Qualitative Comparative Analysis is developed to analyze a group of grant-making foundations located in Italy. The results show that a high involvement of community representatives in organizational activities, a board that is largely rooted in the territory because of the residence of board members and a strong perception that the nonprofit is a legitimate representative of the community are necessary conditions associated with high levels of substantive representation.

The Experiences of a Foundation With a Limited Life: Benefits and Challenges

This article discusses the benefits and drawbacks of a limited-life foundation’s philanthropy practice. The strengths, including a sharpened strategic focus and sense of urgency, and the challenges, such as ensuring impact and dealing with grantee dependency, are also relevant when closing a program. Drawing on reflections from the director general of the MAVA Foundation and learnings from foundations that have recently closed, this article also discusses how to prepare for the end date of a limited-life foundation. MAVA, a Swiss-based grantmaking foundation for 25 years, has a planned end date of 2022. The article features key lessons for foundations considering closure, and will examine why some grantmakers should consider a limited-life model instead of operating in perpetuity.

Grantmaking Foundations’ Asset Management, Payout Rates, and Longevity Under Changing Market Conditions: Results From a Monte Carlo Simulation Study

Today’s uncertain financial markets could affect foundations’ future grantmaking capacities. We review foundations’ financial decision-making patterns and their effect on foundations’ assets, longevity goals, and payouts. Using three fictional foundations with different longevity goals and grantmaking preferences, we demonstrate the delicate balance and tight nexus between asset management strategies, payout rates, and longevity. To do so, we perform stochastic Monte Carlo simulations of multiple foundation life cycles, conducted under diverse capital market scenarios. The findings suggest that foundations should (a) readjust their return expectations to today’s less favorable markets; (b) reduce their reliance on past portfolios’ investment returns or unique “success stories” in making decisions; (c) appreciate the strong interdependence between portfolio-mix, payout rates, and longevity; (d) consider effects of their particular mission/problem area on these parameters; and (e) use tailored projection analyses that simulate various investment strategies, payouts rates, and longevity to meet their grantmaking goals.

Reconsidering the philanthropic foundation minimum payout policy under a “new normal”

With the increasing salience of foundations in many policy fields, and recent changes in market conditions, policies towards foundations designed decades ago seem outdated. In this article we suggest reassessing foundation payout minimums. To examine the impact of payout rates on grantmaking foundations lifespan and performance under “new normal” economics, we simulate multiple foundations lifecycles using Monte Carlo methods in diverse capital market conditions, with varied investment and payout strategies.We find that while under past market regime perpetuity seems to be a given, under more probable future scenarios, foundations might face increasingly early mortality and endowment depletion, limiting their potential impact. Furthermore, lower payout rates allow for higher lifetime grantmaking, higher mean annual grantmaking, and lower giving volatility. Accordingly, we suggest a tiered payout policy, in line with foundations’ missions and proper financial planning.

助成実績の比較からみる大正期から昭和初期の社会事業における民間助成財団の実態と特徴――安田修徳会・三井報恩会・原田積善会・慶福会の事例から――

助成実績の比較からみる大正期から昭和初期の社会事業における民間助成財団の実態と特徴――安田修徳会・三井報恩会・原田積善会・慶福会の事例から――

Foundations in Switzerland: Between the American and the German Cases

This article considers the current state of the Swiss foundation sector in relation to both its own historical development and its counterparts in Germany and the United States. Through a descriptive analysis of the database of the Center for Philanthropy Studies (CEPS) of 11,619 foundations and a case study of 2,679 foundations in 7 cantons, we show that despite the similarities to Germany in historical growth and to the United States in asset distribution Swiss foundations are unique in density and fields of activity they pursue. In terms of roles Swiss foundations are close to the U.S. foundations in their emphasis on complementarity, but in terms of approach are close to Germany with a significant number of grant-making foundations. Overall, it is found that despite some socioeconomic transformations in Switzerland the categorization of the foundation sector close to a liberal model has not fundamentally changed.

Understanding Information Exchanges and Reporting by Grantmaking Foundations

Information and reporting issues are more present than ever in a context of accountability pressures on nonprofits and foundations. This conceptual article explores the information flows between the stakeholders in the philanthropic ecosystem and examines four broad types of reporting: tax and regulatory, financial, social, and grants reporting. Tax and regulatory reporting includes the general requirements imposed on charities and specific requirements imposed on Canadian foundations by the Income Tax Act. Financial reporting refers to financial statements and other financial information. Social reporting refers to information shared about foundations’ activities, non-financial performance, and impacts. Grant reporting refers to information requests and disclosure between foundations and grantees, and information about grants shared with other stakeholders. The article provides an analysis framework to examine the grantmaking foundations’ ecosystem and identify key trends and challenges regarding information exchanges.Les enjeux liés à l’information et à la communication sont plus présents que jamais dans un contexte de responsabilisation en expansion. Diverses parties prenantes participent dans l’écosystème des fondations subventionnaires et sont engagés dans l’échange d’information. L’objectif de cet article conceptuel est d’explorer la circulation de l’information entre les parties prenantes de l’écosystème philanthropique et d’examiner quatre grands types de communication, soit celles fiscales et réglementaires, financières, sociales et subventionnaires. Les communications fiscales et réglementaires comprennent les exigences générales et spécifiques des organismes gouvernementaux, par exemple, la Déclaration de renseignements T3010 requis par la Loi de l’impôt sur le revenu du Canada. Les communications financières comprennent les états financiers et les autres informations financières. Les communications sociales portent sur l’information partagée à propos des activités des fondations, de leur performance non-financière et des impacts. Les communications subventionnaires comprennent les demandes et la divulgation d’information entre les fondations et les bénéficiaires et celle partagée avec les autres parties prenantes. Parmi les contributions de l’article, notons le développement d’un cadre d’analyse, basé sur la théorie des parties prenantes et sur la circulation de l’information, afin d’examiner l’écosystème philanthropique.

Room to Flourish: Lessons for Canadian Grantmaking Foundations from Sweden, Germany and the Netherlands

While Canada has experienced a long and successful history of encouraging social participation and community activity through its grantmaking foundation sector, this article argues that Canada’s historic and present-day regulatory restrictions have limited the extent to which its foundation sector has been allowed to innovate and flourish. To exemplify the types of tractable regulatory schemes that have allowed grantmaking foundation sectors in comparative contexts to prosper, the evolution of the grantmaking foundation sectors in Sweden, Germany, and the Netherlands is examined within the context of social origins theory. One important contribution of this article is to compare their regulatory frameworks to the Canadian context. It concludes with lessons learned for the Canadian grantmaking foundation sector and for public officials to consider.Bien que le secteur des fondations subventionnaires au Canada ait connu une longue histoire de réussites dans l’encouragement de la participation sociale et de l’activité communautaire, cet article soutient qu’une réglementation restrictive autant dans le passé qu’au présent a limité l’innovation et l’épanouissement dans le secteur. Afin de montrer comment une réglementation plus souple pourrait permettre aux fondations canadiennes de prospérer davantage, cet article recourt à la théorie des origines sociales pour examiner le secteur en Suède, en Allemagne et aux Pays-Bas. Une contribution importante de cet article consiste ainsi à comparer les contextes réglementaires dans ces pays à celui du Canada. En conclusion, il fait des recommandations pour les fondations subventionnaires et le secteur public canadiens.