posted on: Thursday, June 25, 2009

By Julia Craig

Last week, First Lady Michelle Obama called on the nation’s philanthropic institutions to seize the opportunity to get involved in economic recovery efforts. Speaking at a luncheon of Washington-area philanthropic organizations and nonprofits, Mrs. Obama told the group that despite government programs such as the Serve America Act that greatly expands AmeriCorps and volunteer opportunities, “Washington can only do so much.”

Mrs. Obama recalled her time as a community organizer and nonprofit staff member working on fundraising and grant reports. She said that multi-year grants allowed her to make realistic budgets and build capacity through investments in technology and staff. She also noted the importance of demonstrating impact in order for funders and community members to maintain interest in supporting the work of nonprofits. Mrs. Obama encouraged the group to take advantage of federal programs designed to increase volunteerism and encouraged funders to come together with communities and nonprofit organizations to develop solutions to the current economic crisis at the local level.

In Criteria for Philanthropy at its Best, NCRP calls on grantmakers to designate 50 percent of their grants as multi-year funding and 50 percent as general operating support. These types of support best allow nonprofit organizations to fulfill their missions and meet the needs of their communities.

Flexible, multi-year support – as Michelle Obama stated – allows nonprofits to plan for the future and respond to changing needs. Given the current economic climate and the difficulty foundations and nonprofits alike are facing, it is more important than ever that philanthropic institutions fund their nonprofit partners in ways that allow them to best achieve their missions.

Has your organization ever received a multi-year grant? How have multi-year grants helped your nonprofit? We’d love to hear your stories!