Funders Will Rely More on Non-grantmaking Activities to Achieve Goals, According to New Foundation Center Research Advisory

Close to two-thirds of foundations responding to a new Foundation Center survey expect to reduce the number and/or the size of grants they award in 2009. According to Foundations Address the Impact of the Economic Crisis, organizations seeking new sources of support and recently established entities will be especially challenged in securing foundation funding. The report is based on 2009 survey responses of more than 1,200 U.S. foundations.

In addition, the new survey finds that over half of respondents are reacting to the economic crisis by engaging in more non-grantmaking activities. Fully two-thirds of these funders plan to seek out more collaborations and partnerships in 2009, while roughly one-third indicate that they will be initiating more convenings. At least one out of five respondents expects to engage in more foundation staff-led activities, provide more technical assistance, offer more bridge/emergency financing, or engage in more advocacy.

"Foundations can do so much more than simply make grants," said Bradford K. Smith, president of the Foundation Center. "The important thing is for them to remain true to their values and causes and to stand by their nonprofit partners."

Other key findings from the new advisory include:

• Foundations will draw upon various resources to fund their 2009 giving - close to two out of five respondents expect to draw at least in part on their endowments to fund grants.

• About 14 percent of respondents either have made or plan to make exceptional grants or launch special initiatives in response to the economic crisis, largely by reallocating existing grants budgets.

• Nearly one-third of respondents made operational changes as a result of the 2000-02 economic downturn that they believe better prepared them to face the current downturn, such as changes in investment strategies or reducing operating expenses.

"Foundations are not rolling over in the face of adversity," said Steven Lawrence, the Center's senior director of research and author of the advisory. "The new survey shows foundations being creative, strategic, and willing to dig deep to ensure that their agendas move forward while this crisis persists."

This Foundation Center research advisory is the latest in a series that explores the impact of the economic downturn on the nonprofit sector. The advisories and the online chart "In Their Own Words: 2009 Foundation Giving Forecast" are available at the Center's "Focus on the Economic Crisis" web page, which offers a variety of resources to help nonprofits and foundations deal with the challenges of the unstable economy. Also available there is the Center's interactive map that displays the most recent data available on U.S. foundation support for the crisis, totaling more than $175 million to date.

About the Survey

In January 2009, the Foundation Center mailed its annual "Foundation Giving Forecast Survey" to approximately 5,000 large and mid-size U.S. independent, corporate, and community foundations. The survey included questions on foundations' giving and assets in 2008, the outlook for giving in 2009 and 2010, and how foundations are responding to the economic downturn. A total of 1,243 foundations provided usable responses.

The report can be downloaded at no charge from the Gain Knowledge area of the Center's web site.

This study was made possible in part by support from The Wallace Foundation. The Foundation Center's Research Institute is funded in part by The Wallace Foundation, which supports and shares effective ideas and practices to help institutions expand learning and enrichment opportunities. To learn more, visit the Knowledge Center at www.wallacefoundation.org.

About the Foundation Center

Established in 1956 and today supported by close to 600 foundations, the Foundation Center is the nation's leading authority on philanthropy, connecting nonprofits and the grantmakers supporting them to tools they can use and information they can trust. The Center maintains the most comprehensive database on U.S. grantmakers and their grants — a robust, accessible knowledge bank for the sector. It also operates research, education, and training programs designed to advance knowledge of philanthropy at every level. Thousands of people visit the Center's web site each day and are served in its five regional library/learning centers and its network of more than 400 funding information centers located in public libraries, community foundations, and educational institutions in every U.S. state and beyond. For more information, please visit foundationcenter.org or call (212) 620-4230.

A new video, "How Surveys can help your organization grow" is available for free from Constant Contact.

Amy Black from Constant Contact sum it up best when she blogged:

No matter what your organization does, online surveys are a very important part of your tool kit. If you are wondering why you should send one, I can help. While there are many reasons to send a survey here are my top eight.

1. Get feedback - The most important people to your organization are your customers or members. Understanding who they are, what they want, and what they think about your business will help you to better serve them. Surveys (and online surveys in particular) are the best way to get this information. Asking for your constituents’ feedback also builds their trust in you. It shows that you are interested in their experience and opinions.
2. Guide business decisions - Overall, surveys are valuable for gathering information useful for making informed business decisions. The feedback you receive from your customers can guide you in future decisions—both big and small.
3. Gauge satisfaction and loyalty - With a survey, you can find out how customers or members view their overall experience when dealing with you and how deep their commitment is to continuing the relationship. You can also learn how likely they are to refer you to others.
4. Assess current products and services - Find out what customers think of your current offerings and what they would like you to add (or take away).
5. Set benchmarks - Surveys allow you to take a snapshot of your organization at one moment in time. These results will serve as a yardstick for future measurements in later surveys. For example, with a customer satisfaction survey you can see, over time, if people become more or less satisfied with your products and services.
6. Discover new ideas - Your customers are smart and creative. They have ideas that you haven’t thought of. A survey gives you an opportunity to gather their ideas by having a brainstorm. Think of all the great ideas you can get from the people who know your business best.
7. Get competitive information - In your surveys, you can ask your customers about competitive products or businesses and how you stack up against them. This practice will allow you to build a better awareness of the alternatives in the market and find solutions to match competitors’ offerings.
8. Set pricing - Surveys are a great place to test your customers’ responses to your prices and ask about how much more they might be willing to pay for additional or bundled services and products.

Get a free look at the online video How Surveys can help your organization grow.

Get a free report from nonprofit consultant John Haydon : Twitter Jump Start - The Twitter Guide for Small Non-Profits. It's a free download for subscribers to CorporateDollar.org (which has lots of great info for nonprofits also).

Stop by John's website and get going with Twitter today: http://www.corporatedollar.org/twitter-jump-start-the-complete-guide-for-small-non-profits

The Lanyard Store has a wonderful policy of donating up to 15% of their total inventory to nonprofit organizations and charities.

Understand, some of the items are from their random extra inventory. However they do also do custom printed lanyards and other strap products, free of charge, for many organizations.

Stop by http://www.lanyardstore.com/free-lanyard-charity.htm to check it out further and apply online.

While not as big as recent peanut recall the FDA pistachio recall that started last week has reared its ugly head in the fundraising industry too.

If it gets any bigger we will spin it off into its own page too, but until then here is the latest:

• Ashdon Farms

  Product involved in the recall is 7.5 oz Girl Scouts Pistachios packed in pop top cans. Product was distributed by Girl Scout Councils as part of fundraising efforts. With the exception of product distributed in Northeastern Illinois and Northwestern Indiana in March 2009, all of the product was distributed between October and early December 2008. The 2008 product was distributed by Girl Scout Councils in Connecticut, Delaware, Florida, Illinois, Indiana, Louisiana, Massachusetts, Maine, Michigan, Mississippi, Nebraska, New Jersey, New Mexico, Nevada, New York, Pennsylvania, Texas and Virginia. For more information, consumers can call 800-274-3666.

• John B. Sanfilippo & Son Inc.

  Sanfilippo - which processes, packages, markets and distributes nuts under the Fisher Nuts, Flavor Tree and Sunshine Country labels - announced the recall of both bulk- and small-packaged items of pistachios on the recommendation of its supplier, California-based Setton Pistachio of Terra Bella Inc.

  They are recalling 25-pound bulk packages of Fisher Natural California Pistachios, sold to fundraisers, stores selling bulk nuts, rebaggers and distributors.

• Pine River Pre-Pack Inc.

  Pine River Pre-Pack Inc. is recalling small packaged items of Pine River-Deluxe Mix Nuts with Peanuts. The company said it has not received any reports of illnesses. The recall involves 5-ounce bags of Pine River — Deluxe Mixed Nuts with Peanuts; item No. P160; lot 39041; case item No. 16-00728; individual package UPC: 0 25231 00728 4.

  The recalled items have been sold under the Pine River brand to various distributors and fundraising distributors in these states: Alabama, Florida, Georgia, Illinois, Indiana, Massachusetts, Michigan, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Virginia and Wisconsin. For more information, consumers can call 800-722-4217, ext. 113.

• QSP Inc.

  Pleasantville Farms 7.5 ounce in-shell pistachios packed in pop top cans. The recalled products were distributed nationwide by schools and other organizations as part of fundraising programs. Consumers that still have the product in their possession should dispose of the product. For additional information contact Paul Norton, QSP at 914-244-7367.

• Trophy Nut Co.

  Trophy Nut Co. is recalling products containing pistachio nuts: Nut Barrel Brand 5 ounce fundraising bag. For more information, consumers can call 800-729-6887, ext. 248.