How Lean Funders Are Responding to COVID-19 - Exponent Philanthropy
A post to Exponent Philanthropy's blog

How Lean Funders Are Responding to COVID-19

In April, Exponent Philanthropy fielded a survey to learn how our community is responding to COVID-19, and more than 900 lean funders responded. We’re still analyzing the data and further engaging respondents, but we want to share a high-level overview.

Have lean funders changed their funding in response to COVID-19?

In a word, yes.

Nearly 80% of lean funders have changed their approach to funding as a result of COVID-19. Of those who have not, almost 20% plan to change their approach in the next year.

Are funders giving more this year?

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About half of survey respondents say they’ll give more this year because of the pandemic.

Of the foundations that plan to increase their giving:

  • 40.5% will give a certain dollar amount more
  • 20.8% will increase the foundation’s overall payout
  • 5.4% will increase the foundation’s grant budget by a certain percentage

Are funders shifting strategies in response to COVID-19?

Many lean funders are shifting some of their funding to support new populations. The majority of respondents (53%) are working to support individuals who have been economically affected by COVID-19. And almost 42% of lean funders are making grants to nonprofits outside their typical portfolio.

Lean funders are also implementing new approaches to supporting grantees and communities.

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Highlights from the data include:

  • 72% of funders are making emergency response grants outside the foundation’s normal grant cycle; 13% are considering it.
  • 64% of funders are converting existing grants to more flexible funds (e.g., converting project grants to general operating support grants); nearly 15% are considering it.

  • 63% of funders are making additional grants to existing grantees; 22% are considering it.
  • 56% of funders are delaying or postponing reporting deadlines; 15% are considering it.
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  • 55% of funders are collaborating with other funders; 20% are considering it.

See the approaches funders have implemented, are considering, or decided against.

How have foundation operations changed in COVID-19?

Our lives have been upended by the pandemic and social distancing. Foundations are holding virtual board meetings (70%), virtual staff meetings (59%), and virtual meetings with grantees (59%).

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More than half (55%) of funders have postponed site visits, and almost 30% have moved from issuing paper checks to making electronic payments for grants.

We’ll share how our members are responding to COVID-19 in the coming weeks as we continue analyzing data and collecting member stories.

Comments

  1. Scott Gelzer

    Some solid insights from this early survey. Why am I not surprised? Thanks.

  2. Peter Weston

    Wondering if there’s any trend becoming evident in terms of compensation practice for paid CEOs, other staff in the Pandemic environment.

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