Foundations Adjust Strategies Amid Increased Demand and Funding Challenges for Nonprofits
Nonprofit organizations in the U.S. are facing increased demand for their services while simultaneously experiencing reduced funding from various sources, including government, foundations, and individual donors. According to a report by The Center for Effective Philanthropy, nearly two-thirds of nonprofit leaders report heightened demand, with over half indicating that the current environment significantly impacts their ability to provide services. In response, some foundations are altering their grantmaking strategies by establishing emergency grants, offering new forms of assistance, and increasing the use of unrestricted grants. These changes aim to provide greater revenue stability for nonprofits. Despite these efforts, many nonprofit leaders believe that foundations could do more to support their operations and the communities they serve.