We are getting insights directly from nonprofits about the challenges they have been facing over the last several months through the Center for Effective Philanthropy’s (CEP) latest report: Funder Support During the COVID-19 Pandemic.

Through a national survey, CEP received responses from 172 participants from nonprofit CEOs at organizations that receive at least one grant from foundations giving $5 million or more annually.

In the report CEP shared three key findings:

• While COVID-19 has had devastating impacts on most nonprofits, the negative impacts have been magnified for those providing direct services and which serve historically disadvantaged communities. Demand for these nonprofits’ services has increased by 55%, while funding has decreased. In response, many nonprofits are intently listening to clients to ensure they receive the necessary resources and are developing strategies to quickly meet their growing needs.

• During this time, nonprofits that rely on foundation funding are experiencing fewer negative impacts and more stable funding than those relying more so on earned revenue or gifts from individual donors. According to the report, 52% of nonprofits that are largely funded by non-foundation sources reported that the pandemic has had a significant impact on their work compared to only 26% of those funded by foundations. Additionally, gifts from major donors (categorized as those above the $7,500 giving mark) have decreased by 43% during the pandemic.

• Major donors are significantly less likely to have talked with nonprofits that are led by women about how they will support them in the future. According to CEP, gender of the nonprofit leader matters when it comes to transparency about future funding from major donors. 53% of major donors who give to female-led nonprofits have not spoken to the organization about future plans for support compared to only 17% of major donors to male-led nonprofits.

According to respondents, nonprofits have greatly appreciated staffed foundations’ actions such as extending deadlines for grants, waiving reporting deadlines and automatically renewing grants.

Throughout the pandemic, many CMF members have adapted their policies, procedures and work with their nonprofit partners to create flexibility and increase their support during this time. In CMF’s Resource Central we have a robust list of examples of how CMF members have approached these changes with their nonprofit partners. As reflected in our webpage of CMF members’ response and relief funds, many members deployed response funding and immediate support to nonprofits. CMF, along with more of 20 of our members have also signed on to Philanthropy's Commitment During COVID-19 Pledge to ensure flexibility in grantmaking and in work with nonprofit partners.

In recent months we have seen foundations across Michigan and beyond pivot and adapt their practices in many ways to support nonprofits.

The Ford Foundation and W.K. Kellogg Foundation, in partnership with other funders announced last week they are increasing their payouts to nonprofits over the next three years to sustain the sector following the pandemic and the social injustices we are witnessing in our country.

"This is a time that calls for bold leadership and innovation," La June Montgomery Tabron, president and CEO, W.K. Kellogg Foundation said. "Philanthropy needs to respond to the scale of the challenges we are facing. Post-pandemic, our grantees, communities, and partner organizations will need to be strong to re-imagine and rebuild systems centered on racial equity. They have the leadership, knowledge, and resolve to advance their communities; we want to be a catalytic partner in that process."

Want more?

Read the full CEP report.

Read the press release featuring the Ford Foundation and W.K. Kellogg Foundation.

To foster continued learning, connections and shared understanding about Michigan philanthropy’s response, relief, recovery and reform efforts connected to COVID-19, we encourage you to share your organization’s COVID-19 response with us via this online form. All information submitted by our members will be populated in COVID-19 Resource Central for you to quickly access the latest approaches, strategies and collaborations underway around the state.