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PEAK Grantmaking

Grantmaking Practice Changes: For the movement, or just for the moment?

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In two major surveys, conducted in 2020, hundreds of grantmakers weighed in on how they have changed their practices in response to our national crises, and how these changes might impact their longer-term approach. 
The good news: Many have adopted a range of more flexible, responsive practices. What concerns us: Far fewer report implementing changes that explicitly advance racial equity, and those who do cite a lack of internal policies and frameworks as a key barrier in pursuing them for the long term.

How grantmaking practices shifted from March to May

A joint report from PEAK and Exponent Philanthropy, based on surveys from both organizations, revealed some positive changes related to grantmaking strategy and practice in the first three months of the COVID-19 pandemic:

  • 67% reduced application requirements and implemented more flexible requirements
  • 64% eliminated or reduced reporting requirements
  • 62% altered their typical process for grant decision-making
  • 57% converted existing project grants to operating grants
  • 50% plan on increasing their payout in 2020
  • 30% moved from paper-based to electronic payments 

Many grantmakers are being more collaborative, both in seeking and giving guidance outside of their own board and staff:

  • 77% had open and transparent conversations with grantees about the risks they are facing, and their impact on program delivery and overall sustainability
  • 48% contributed to a regional or national rapid response fund
  • 46% surveyed grantees or their community to help anticipate emergent needs
  • 30% engaged in thought leadership by writing or sharing information about changed processes

Fewer are engaged in deeper work in response to the crises:

  • 18% included equity as a primary driver for grant decision-making
  • 9% shifted dollars into advocacy work to promote long-term system change to better address the next crisis

The practice shifts grantmakers expect will last

Going forward, a majority plan on providing more general operating support and improving communications:

  • 69% will continue holding open and transparent conversations with grantees about the risks they are facing, and their impact on program delivery and overall sustainability
  • 53% will offer general operating support instead of project support
  • 47% will reduce application requirements or implement more flexible requirements for rapid funds

However, most have not committed to sustain these practice changes in the long run, only short-term:

  • 39% will survey grantees or the community to help anticipate emergent needs
  • 36% will eliminate or reduce reporting requirements
  • 29% will include equity as a primary driver for decision-making
  • 29% plan to include a certain percentage of contingency funding in their annual grant budget
  • 26% will keep changes to their decision-making processes
  • 13% will shift dollars into advocacy work to promote long-term system change to better prepare for the next crisis 

Download COVID-19: How Have Funders Changed Their Approach & What Will Stick? 


Shifts in grantmaking practices from March to September

Four months later, another large-scale survey was fielded by the Council on Foundations, Philanthropy California, and Dalberg Advisors on shifting grantmakers, and reported that the trend continues. A majority are giving more, and being more flexible in their grantmaking practices:

  • 85% reported adopting flexible grantmaking practices for current grantees
  • 74% reported loosening grant requirements
  • 60% are increasing giving beyond planned 2020 levels, with an average increase of 17%

There was also an increase in deeper work around racial equity and diversity, equity, and inclusion, although many reported lacking the internal frameworks and processes to sustain this work:

  • 52% reported that they are actively considering new internal processes around DEI or grantmaking
  • 37% of those adopting more flexible practices or loosened grant requirements are implementing changes with an anti-racism lens
  • 20% of those with endowments are proposing new investment practices, such as mission-related investments or investing through a racial equity lens, to leverage the “other 95%” for redistributing power
  • 11% report that racial equity is now a key or primary focus of their work, compared to at the beginning of the year

Download Shifting Practices, Sharing Power? How U.S. Philanthropy is responding to the 2020 Crises.