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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