Cambridge, MA, July 9 – A new study by the Center for Effective Philanthropy (CEP) reveals a significant disconnect between how foundations view their understanding of community needs and how nonprofits perceive their funders’ grasp of these same communities.
The research, titled “Voices That Matter: How Nonprofits and Foundations Engage With the Communities They Support,” surveyed 241 nonprofits and 243 foundations, finding that while almost all organizations report collecting community feedback, critical gaps remain in how this information is supported and utilized.
The report reveals that:
- 71 percent of foundation leaders believe their funding priorities are “very well aligned” with community needs, yet less than a quarter of nonprofit leaders report that most or all of their funders have funding priorities that reflect a deep understanding of those they seek to benefit.
- 92 percent of foundation leaders cite their nonprofit partners’ expertise as most useful for shaping their work — with many citing it as even more useful than their own staff expertise. Yet only 40 percent of foundations provide any assistance to their funded nonprofits specifically for feedback collection.
- Nonprofits cite “lack of capacity” as the top challenge when it comes to collecting community feedback. More than half of nonprofits report receiving no foundation support for these critical efforts, however 96 percent of foundations report relying on feedback collected by their nonprofit partners to understand community needs.
Nonprofits leaders note their work would significantly benefit if funders developed deeper community understanding by ensuring they are attuned to the “unique challenges, complexities, and barriers” in a given program area. Leaders also indicate that better understanding would “likely lead to more multiyear and more flexible grantmaking models.”
Some foundation leaders interviewed for the report agreed. One noted: “When we have community at the table, not only is our work better informed, but our strategy is stronger.”
The research also found positive practices in place despite challenges. The study identified about 90 percent of foundations communicate back to communities about changes made based on their input, though less than 30 percent “always” close this feedback loop. Additionally, more than 75 percent of foundations report collecting feedback from their nonprofit partners about the grantmaking experience.
“This sector needs to do a lot more to figure out how to actually connect and build relationships with a broad array of communities,” emphasized one foundation leader. “If there’s ever been a time to try something new, this has got to be it.”
The research suggests foundations can better support effective community engagement by investing in nonprofit capacity for feedback collection, reassessing their understanding of community needs, and creating more flexible funding structures that respond to community-identified priorities.
The full report includes recommendations for both foundations and nonprofits seeking to strengthen their community engagement practices.
About CEP
The Center for Effective Philanthropy (CEP) is a nonprofit organization with a mission to provide data, feedback, programs, and insights to help individual and institutional donors improve their effectiveness. We do this work because we believe effective donors, working collaboratively and thoughtfully, can profoundly contribute to creating a better and more just world. For more information on CEP’s work, including its research, assessments, advisory services, and programming, visit www.cep.org.
MEDIA CONTACT: Chloe Heskett, Center for Effective Philanthropy: chloeh@cep.org | + (617) 395-4092
