All funders have to make difficult decisions about what grantees to support and how much to give to sustainably support grantees. It’s wonderful that you (and many other funders) are able to increase your payout to respond to the current moment. We expect that government funding and the broader funding ecosystem will continue to be uncertain in future years and planning for how you can support your partners with the resources at your disposal will be critical. In this fluid environment, it’s important to be in dialogue with your grantees and to be honest and transparent about your capacity, your goals, and ways that you can provide support beyond the check. Being transparent with your grantee partners will help them plan and help you develop a more trusting and meaningful relationship—ultimately making you a more effective funder. 

Set Expectations for Sustainably Supporting Grantees

In cases when you make a grant above and beyond what you would traditionally give, be clear that the grant is extraordinary and for what reasons. For example, if you’ve increased the dollar amount tell your grantee partner what you would typically give and why you are giving more. Explain what they can expect in future years. If you’ve loosened reporting requirements or are giving general operating support—something we’d encourage you to do always—but usually have more reporting requirements or give project-based grants, let them know that this is atypical for your philanthropy.  

Manage Your Timeline

We encourage funders to think about this current “moment” as one they’ll be facing for three or more years and to fund accordingly. Providing a funding infusion for one grant cycle and then pulling back can create a disruptive boom-and-bust cycle so we recommend ramping your funding down over a few years. Your nonprofit partners will have a longer period to plan, particularly if federal funds aren’t available to replace the dollars you’ve given. Regardless of your funding timeline, be clear about it with your partners. 

Be in Relationship 

Talk to your grantee partners honestly and openly. Find out how they want to receive funds (e.g., quickly or in installments during a few years). Ask how additional funds or less restrictive parameters are helping them meet their mission. This information can be useful to you as you evaluate how your responsive grantmaking is creating the impact you desire. 

Read the full article about sustainably supporting grantees by Maggie McGoldrick at National Center for Family Philanthropy.