With federal funding for nonprofits facing uncertainty and First Amendment rights being called into question, the role of foundations in supporting these organizations has never been more critical. Beyond financial support, foundations have a unique power to advocate for and influence systemic change, making them indispensable partners in the nonprofit sector. In this challenging environment, foundations must use their full range of capabilities to ensure that nonprofit organizations can continue to provide critical services to communities in need.
Beyond the Dollar
Grantmaking foundations are often recognized for their financial contributions, but their influence goes far beyond financial support. They can convene stakeholders, foster partnerships, and advocate for policy changes that benefit nonprofit organizations. Foundations can use their voice to raise awareness of community needs and the importance of nonprofit services, helping to build a stronger case for continued support and funding. In addition, under certain circumstances, foundations have the right to lobby in self-defense. This allows them to communicate with legislative bodies about decisions that could affect their existence, powers, duties, tax-exempt status, or the deductibility of contributions, as outlined in the Internal Revenue Code § 4945(e). By exercising this right, foundations can protect the interests of nonprofit organizations and ensure their continued viability.
Strategies for greater impact
To effectively support nonprofit organizations in this moment, foundations should consider the following strategies:
Engage in Strategic Partnerships: Foundations should strive to be part of a collaborative funding ecosystem in their community, with each funder playing a defined role. By focusing on the needs of the community collectively and playing a role specific to your mission and capacity, foundations can help create a more cohesive and effective landscape that fully supports nonprofit organizations and ensures that resources are used efficiently and community needs are addressed from multiple perspectives.
Promote public awareness and advocacy: Foundations can support public awareness and advocacy efforts that highlight the critical role of nonprofit organizations in communities. By educating policymakers and the public about the importance of nonprofit services, foundations can help ensure continued support and funding.
Use all resources: Foundations can increase their annual disbursement rates and provide flexible, unrestricted funds. Additionally, the individual power of Trustees, Board Members, and Staff, with their influential networks and public presence, can advocate for nonprofit causes and policy changes. By using their voice, they can raise awareness and mobilize support for issues affecting nonprofits
In today's ever challenging landscape, foundations can be a key catalyst for systemic change. By leveraging their diverse capabilities, deepening their role in the funding ecosystem, and taking strategic approaches to supporting nonprofit organizations, foundations can help ensure that these organizations continue to thrive and effectively serve their communities.
*this is not legal advice, consult your general counsel before engaging in advocacy strategies
Commentaires