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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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If you are looking for more articles and resources for Impact Philanthropy, take a look at these Giving Compass selections related to impact giving and Impact Philanthropy.

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    Strategic Collaboration: Leveraging Dollars for Impact

    Giving Compass' Take: • Elaine Katz, Senior VP of Grants and Communications at the Kessler Foundation, discusses collaborative funding as an increasingly popular and practical option for funders. • How might public/private partnerships help scale programs? There's a call here for more risk-takers. • Read more about building a collaborative culture from inspiration to application. The recent great recession that strained philanthropic financial resources and the nonprofit organizations they support, has paved new avenues for collaboration. Today, we are seeing more models (i.e. learning networks, funder syndicates, and venture models), that highlight collaborative funding as an increasingly popular and practical option for funders as a means of impact philanthropy. When the Kessler Foundation board refocused its grantmaking program in 2005 on increasing employment opportunities for people with disabilities, program staff needed to explore ways to maximize its small grantmaking budget of $2.5 million in order to influence growth in a meaningful way. Public/private partnerships and shared funding models became a priority.  Accordingly, we sought out innovative pilots or demonstration projects to provide proof of concept. If successful, these programs could be scaled into a larger corporate or public programs to increase employment. In collaborative funding, one organization often takes the lead. Partners, therefore, must have trust in one another’s ability to lead efficiently and fairly. Fluid communication, understanding, trust, and goodwill are vital to success. For example, it is common practice for partners to share opportunities for speaking engagements and media placements. Setting egos aside to share the front stage is a gesture of mutual respect that will engender a healthier relationship long-term. The beauty of this approach is that it increases opportunities to leverage resources and aids for the development of a learning network, where partners can share valuable information and systematic solutions. Having participated in several collaboratives, I can foresee the potential impact of shared funding on improving employment outcomes for people with disabilities. When collaborations succeed, projects certainly have a greater impact. The collective effects of collaborative projects can move the needle on employment on the national level. Looking at the past few years, public/private partnerships represent a welcome shift in the business of grantmaking. Despite these advances, however, many programs still depend on unidimensional models that fail to produce perceptible change. Put simply, the sector needs more: more drivers; more partnerships; more visionaries; more risk-takers. Read more about strategic collaboration and impact philanthropy by Elaine Katz at GrantCraft. 


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