Trends Affecting Grantwriting

Background Is it “The Economy, Stupid?”

The Financial Market’s “Wiley Coyote” Moment. The worst stock market crash since the Great Depression. The dotcom crash of lost 4,244 points over 2 1/2 years. This one lost 7,427 points in 1 1/2 years, to less than half of its peak value. Many foundations lost 40% of their assets on paper (although they ’ ve recovered somewhat).

In addition to stocks, the over-inflated housing market and its drop caused many people losses to their biggest asset.

This recession is different than other recent ones. Recession officially began December, So 12 months is Dec, 08 and 24 months is Dec, 09.

States are facing large budget shortfalls CNBC says Oregon is the 14th worst off in 2010, with a $1.6 billion budget gap, 18% of general fund.

Total Private Giving to Nonprofits is Down. Current dollar giving has only gone down two times: 1987 & (Some say this Giving USA study is too rosy, many nonprofits giving is lower)

The American Recovery and Reinvestment Act (ARRA) of 2009, aka Federal Stimulus, injected $747 billion into the US Economy. Most went directly to States or individuals, but billions also went into Federal agencies to be released as grants. One time funding to be used (in most cases) by the end of but RFP’s are still coming out of the agencies. Look at agency websites, not for stimulus websites. Stimulus Funding

How are Foundations Doing?

BUT foundation giving grew five-fold from $9.2 billion to $46.8 billion in 17 years from 1991 to The Foundation Center predicts 2010 to be flat and 2011 to show modest growth. Foundation giving closely tracks assets, so assets have grown equivalent amounts.

The number of foundations has skyrocketed, more than tripling since 1980.

Foundation growth is driven by demographics and economics, and shows no signs of declining in the near future. At least four things are happening: Rich people are dieing and creating or enlarging foundations in their wills. Rich people are aging and creating or enlarging foundations as part of their estate planning. Newly rich people are creating foundations (the most famous being the Bill & Melinda Gates Foundation, the world’s largest). The stock market went berserk in the 1990’s, with the Dow Jones Industrial Average more than tripling in value from about 3,300 to over 11,000. Because most foundations are invested in stock markets, this increased the assets of existing foundations. While the stock market has been fluctuating wildly, over the long haul it will probably continue to trend up…how fast depending on the reset in the global economy. Growth in Foundations

Growth of Oregon Foundations

On The Other Hand Grants Trends of the 21st Century

Foundation Behavior in 2010 After the 2000 dot-com crash and the 2008 financial meltdown, foundations are being more cautious. Even if their endowments are doing better, they ’ re not sure that they can count on it in the future. Many are focusing on strengthening established organizations they ’ ve funded before, especially shoring up ones that were hurt by the downturn. Some are making “ operating funds ” grants to these groups for at least a limited time. A hard time for startups. There was a move towards basic needs, funding groups that help people impacted by unemployment and poverty -- food banks, shelters, low income housing, etc. A hard time for arts organizations. There ’ s been an acceleration of the trend to look beyond the project to the strength of the applicant. Can you show a strong financial statement, diversified funding? Can you demonstrate program success with data, stories, testimonials? Again, this favors established organizations. Foundations that cut staff during the downturn are looking for nonprofits to operate leaner too. Don ’ t want to fund “ business as usual ”

Growth of nonprofits since 2000 (from Giving USA).

Non-Grant Issues Affecting Grantwriters

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