The U.S. Census happens only once per decade, New York State is already working to build the nonprofit infrastructure for a successful 2030 count. This effort is led by the New York State Census Equity Fund — a group formed in 2017 by a coalition of funders who came together to create a statewide, grassroots effort to make sure the 2020 Census had the best chance of tallying all New Yorkers.

Because the Fund is a donor collaborative that includes community, private, and family foundations, it has the flexibility and structure to manage a process that has a lengthy time horizon and considerable moving pieces. Funding collaboratives, in which donors come together to pool money and resources for a shared cause, have been gaining popularity in recent years — awarding more than $2 billion annually, according to a 2021 Bridgespan survey. These collaboratives are especially attractive for smaller foundations that are looking to maximize their resources to achieve greater impact.

The Benefits of Funding Collaboratives

Our organization, The New York Community Trust, has created or managed more than 30 funder collaboratives — including the New York State Census Equity Fund — with a variety of missions and timelines. After decades of managing these partnerships with foundations, corporations, government agencies, and individual donors, we’ve learned that collaboratives are especially effective in the following areas.

Sustain a Long-Term Effort

Foundations that tackle complex issues like immigration, education, or climate recognize that they cannot achieve success unless they develop initiatives for the long haul. Collaboratives such as New York State Census Equity Fund understand that sustained action is best accomplished when there are multiple players at the table.

Coordinate a Streamlined Crisis Response

Grantmaking processes are often deliberate and complex. But in the face of a fast-moving crisis, foundations must move quickly, while also staying smart and accountable.

Funding collaboratives — especially those with clear funding objectives, provide room for donors to provide input, and are respectful of the demands of nonprofits — can prove especially effective in the face of disasters and other crises.

Foster a Meaningful Relationship with Government

Philanthropy can provide additional resources and understanding to help ensure government efforts achieve fair and equitable results. Funding collaboratives have the power to forge meaningful partnerships with the government because they can leverage multiple perspectives — and more funding — toward the outcomes each partner seeks.

Facilitate Learning

Good program officers are constantly learning — but they often focus their attention on their organizations’ grantmaking strategies and procedures. Funder collaboratives can open new learning opportunities by connecting program officers and leaders with colleagues who are addressing similar problems and missions at other foundations.

They can also build larger networks of nonprofits and other partners who can benefit from the experiences of colleagues.

Read the full article about funding collaboratives by Kerry McCarthy and Julia Chang at Exponent Philanthropy.