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Harvard Survey
Too Much Red Tape
08/14/2007

Grantmakers would welcome streamlining.

Grantmakers agree by an overwhelming majority—90 percent—that too much red tape encumbers nonprofits they serve and that the funding process should be streamlined, according to a survey by Harvard University’s Hauser Center for Nonprofit Organizations and the Nonprofit Finance Fund. The survey questioned 80 grantmakers, including those attending a Hauser Center symposium.

Among the findings: 70 percent agreed that standardization with other funders’ grant applications is advisable; 83 percent said foundations should increase the size and length of grants, even if that meant fewer nonprofits were supported; and 94 percent said relationships with grantees should be partnerships, not oversight.

“The best grantmakers find ways to use money wisely to help front-line nonprofits succeed, often against overpowering odds,” said Nonprofit Finance Fund president and CEO Clara Miller. “Unfortunately, some time-honored funding practices actually work against success: overly narrow restrictions on the use of funds, expensive customized reporting requirements and starvation-level overhead rates, to name just three that can improve through simpler, more enterprise-friendly practices. The survey shows that many in the funding community—at private foundations, intermediaries and government—are increasingly embracing new ways to fund an effective social sector.”

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