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What are grantees’ experiences with intermediary funders? Read CEP’s research on the topic – the largest study of grantee experiences with intermediary organizations to date.

In the four years since the COVID-19 pandemic began and movements for racial justice gained widespread public attention, nonprofits across the United States have demonstrated their pivotal role in meeting their communities’ needs and advocating for those they serve. Individual and institutional funders, too, have responded to calls for change. Given the vital role nonprofits play in communities across the U.S., we sought to understand how they are faring now and to shed new light on their experiences with funders.

​​Traditionally, endowment funding has been directed to wealthy and well-established nonprofit institutions. In recent years, the conversation about endowments as an equity approach has received more attention in philanthropy. Little is currently known about the degree to which foundations are funding nonprofit endowments.

In just three years, MacKenzie Scott gave more than $14 billion in unrestricted support to more than 1,600 organizations. Her gifts have often come as a surprise to recipients, with no restrictions on how or when they must be used, and with few, if any, reporting requirements. These gifts have been transformational for recipient organizations.

Nonprofits across the United States played a vital role during a period of crisis that began in March 2020 with the COVID-19 pandemic and was followed by a nationwide racial justice reckoning that summer. As nonprofits experienced heightened demand coupled with marked uncertainty about revenues, they responded with resiliency and imagination, while many funders also stepped up, increasing philanthropic giving in a time of urgent need. Following this intense period of trial and turmoil, we wanted to take stock of current nonprofit perspectives and understand their evolving experiences with funders.

In late July 2020, MacKenzie Scott shocked the philanthropic and nonprofit worlds with the announcement that she had given $1.7 billion to 116 nonprofit organizations. The gifts came in the form of massive, unrestricted grants, with a significant proportion targeted to organizations focused on issues of equity, and were made with no restrictions – only an expectation of an annual three-page letter back to the donor for the three years following their receipt.

Despite the urgency of climate change and the narrowing window for action, philanthropic funding to address climate change remains very limited. Total philanthropic giving by foundations and individuals focused on climate change mitigation represents less than two percent of total global philanthropic giving, according to the ClimateWorks Foundation. While there is some evidence of increased momentum in recent years, more action will be needed to match the scale of the climate crisis.