Multiyear funding—support that funders commit up-front for multiple years—is a key to strengthening nonprofit effectiveness, capacity, and impact. These grants guarantee income streams, lessening the time grantees need to fundraise so they can better carry out their missions. In a tough economy, when many foundations are cutting grant budgets and reducing their number of grantees, committing scarce funds for a longer time frame is particularly valuable.

Exponent Philanthropy members see the usefulness of multiyear grants in supporting a range of activities. Says Brigitte Lehner Kingsbury of the Orchard Foundation in Maine:

“Ask yourself of a potential grant request, ‘Do you really think this can be done in one year?’ If it can’t, why not make the commitment?”

7 Key Benefits of Multiyear Funding

The sector has long recognized the benefits of multiyear funding, including its usefulness in:

  1. Fulfilling specific goals
  2. Attracting additional funding
  3. Building grantee capacity
  4. Funding advocacy
  5. Reducing administrative burdens
  6. Accelerating equity
  7. Supporting new ventures

Read the full article about multiyear funding by Hannah Smith at Exponent Philanthropy.