Many lean funders, looking at their limited budgets and small teams, ask a familiar question: Is writing a check the most we can really offer? New data from Exponent Philanthropy’s 2026 Foundation Operations and Management Report suggests the answer is no, and many foundations are already demonstrating why. Catalytic Leadership in Philanthropy highlights four Catalysts that help funders extend their influence beyond the grant itself. These actions—Connect, Collaborate, Champion, and Advocate—work as multipliers; when funders use their relationships, reputation, and voice alongside their dollars, they can help drive change far beyond funding alone.
The 2026 FOMR suggests many lean funders are already putting these Catalysts into practice, sometimes without even naming them. The data shows where these efforts are happening today and where there is still room to grow.
Connecting People and Ideas
Catalytic leaders build relationships across sectors—not just with grantees, but with local leaders, business owners, government officials, and community members. These connections help funders understand what’s happening on the ground and make more informed grantmaking decisions.
About half of foundations (46%) reported convening grantees or nonprofits in the past year. These gatherings create opportunities for organizations to build partnerships, share knowledge, and strengthen their work together. Foundations focused on racial equity were especially likely to host these convenings, reflecting how equity-centered funders often prioritize community-building. There is still room to grow when it comes to convening beneficiaries themselves. Only 6% of foundations reported bringing beneficiaries together to hear directly from them.
Acting as a connector does not require a large endowment or a formal events program. A phone call introducing two grantees, or a note connecting a nonprofit leader with a potential partner, can open doors that a grant alone might not.
Collaborating for Greater Impact
Some challenges are simply too large for one foundation to address alone. When lean funders collaborate, they can combine knowledge, relationships, and resources to tackle problems that extend beyond the reach of any single organization.
Nearly two-thirds of foundations (64%) reported collaborating with other funders in the past year, according to the 2026 FOMR. More than half (54%) also supported collaboration among their grantees, helping nonprofits work together rather than compete for the same resources.
Foundations focused on racial equity were especially likely to take this approach. That reflects a simple reality: complex challenges like poverty, health disparities, and educational inequity rarely improve through isolated efforts. They require coordinated work and strong partnerships. When funders collaborate, they not only expand their own reach—they also help model the kind of collective action they hope to see in the communities they support.
Championing Grantees
Nonprofits are doing important work, but many—especially smaller organizations—don’t always have the visibility or networks they need to reach new funders, partners, or policymakers. Catalytic leaders can help close that gap.
More than two-thirds of foundations (69%) connected grantees with other funding opportunities in the past year. Nearly half (45%) used advocacy, public relations, or other strategies to elevate their grantees’ work by sharing their stories, opening doors, and lending credibility.
Championing grantees doesn’t require a large investment. A simple introduction to another funder, a LinkedIn post about a nonprofit’s work, or an invitation to join a site visit can help an organization reach new supporters and expand its impact.
Advocating for Change
Advocacy may be the Catalyst where lean funders have the most untapped potential.
Many foundations hesitate to engage in advocacy because they associate it with lobbying. But the two are different. Lobbying focuses on influencing specific legislation, while advocacy includes a much broader range of activities such as funding research, educating the public, meeting with officials, testifying at hearings, or supporting organizations working on policy issues. Many of these activities are fully permissible for private foundations.
The 2026 FOMR shows that advocacy most often occurs at the local level. About 26% of foundations reported meeting with local elected officials, and 25% met with local government staff. Engagement drops at higher levels of government: only 17% met with state legislators, and 8% met with federal officials.
Beyond meetings, some foundations also supported advocacy by commissioning or funding research (26%) and monitoring regulatory hearings (18%). These are accessible ways for foundations to contribute to policy conversations and stay informed about the issues affecting their communities.
Advocacy doesn’t have to be complex. Even small actions, such as sharing research, attending a local meeting, or supporting a grantee’s policy work, can help shape the environment in which nonprofits operate.
The Bottom Line
The 2026 Foundation Operations and Management Report highlights an important truth: grantmaking is only one part of how foundations create impact.
Lean funders are already extending their influence in other ways—by connecting people, collaborating with peers, championing their grantees, and engaging in advocacy. These actions build on resources many foundations already have: relationships, credibility, knowledge of their communities, and a trusted voice.
When used together, these tools can significantly expand what a foundation can accomplish. A grant may start the work, but relationships, partnerships, and leadership help sustain it.
For lean funders, the question is not whether they have enough resources to lead change. It is how they choose to use the resources they already bring to the table.
Insights for the Year Ahead
The 2026 Foundation Operations and Management Report delivers benchmarking data and context to help foundations with few or no staff navigate funding shifts and continued uncertainty. Grounded in peer insights, it offers practical guideposts to assess where you stand and identify opportunities to strengthen your impact. Get your copy today.
About the Author
Brendan McCormick is the Director of Research and Publications at Exponent Philanthropy. He works with members, partners, and staff to develop resources and research on our funder community.