Note: Due to error in the Foundation Center data that NCRP received for this study, "The State of Multi-Year Funding" is temporarily unavailable. We will post a revised version once we have analyzed the corrected numbers. Please read this statement for more information.
For Immediate Release
Philanthropy Turned Its Back on Multi-Year Grants
Available long-term funding for nonprofits collapsed in 2008-2010, outlook uncertain
Washington, D.C. (9/05/2012) – Multi-year funding declined substantially across the philanthropic sector in 2008-2010. According to “The Philanthropic Landscape: The State of Multi-Year Funding,” released today by the National Committee for Responsive Philanthropy (NCRP), the share of grant dollars made as multi-year grants fell by 37 percent compared to a similar analysis of data from 2004-2006. If the Bill & Melinda Gates Foundation, the nation’s largest grantmaker, is excluded from the analysis, the drop becomes more pronounced at 55 percent.
Other key findings noted in the paper include:
- Multi-year funding declined especially among community and corporate foundations to just 2 percent of their total giving.
- Multi-year funding decreased most among southern grantmakers, falling 73 percent.
- Multi-year funding fell most among those foundations giving less than $10 million annually.
- The proportion of funders making no multi-year grants doubled from 40 to 81 percent.
In 2008-2010, the average multi-year funding was $5.7 billion, which represents approximately 29 percent of total grant dollars.
"The numbers confirm what nonprofits have been reporting to us anecdotally: that multi-year funding is a scarce commodity," said Aaron Dorfman, executive director of NCRP. "During the economic crisis, when flexible, long-term support would have been most helpful to nonprofits, philanthropy was missing in action."
“The State of Multi-Year Funding” lists the 25 largest multi-year funders by share of total giving. At the top are the Bill & Melinda Gates Foundation, The California Wellness Foundation and The Andrew W. Mellon Foundation.
The analysis also notes the benefits of flexible, long-term funding to nonprofits, including the ability to respond to crises and opportunities, maintain staff continuity, invest in organizational leadership and improve planning.
“The Philanthropic Landscape: The State of Multi-Year Funding,” written by NCRP research and policy director Niki Jagpal and research associate Kevin Laskowski, is available for free on the NCRP website at http://www.ncrp.org/campaigns-research-policy/the-philanthropic-landscape.
About “The Philanthropic Landscape”
The Philanthropic Landscape is a new series of fact sheets that analyzes the most recently available data for the latest giving trends, beginning with multi-year funding. Don’t miss these and forthcoming reports from NCRP; sign up to receive Roundup in your inbox today!
The National Committee for Responsive Philanthropy in Washington, D.C., is a national watchdog, research and advocacy organization that promotes philanthropy that serves the public good, is responsive to people and communities with the least wealth and opportunity, and is held accountable to the highest standards of integrity and openness. Visit www.ncrp.org.
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